The 1Q 2019 economy statistics released by the department of statistics Singapore shows the economy looks promising with 5.6 percent year-on-year increase in household net worth. This would not have been possible in the absence of thriving businesses.
Just as profit is essential for the success of any business, so is the required finance for the kick-start or smooth running of the business. Accessing business financial loan is more of knowing the right place to look rather than checking out random places.
Generally, a business financial loan can either be secured or unsecured. Secured loans will require the borrower to present some collaterals as security. Unsecured loans usually have the backing of a body as security before financial institutions could lend entrepreneurs money with no request for security. There are, however, some legal moneylenders that now give loan without the demand for collateral but the amount accessible at once by a business is limited.
For a business to qualify for any of the loan categories, it has to satisfy two requirements before any other criteria stated for the category. The business must be registered and based in Singapore; at least 30 percent of its shares must also belong to Singapore local citizen(s).
Eligibility for Business Financing Loan
Entrepreneurs can get up to S$100,000 loan to cover for their daily operations expenses and doing some upgrade in the company.To qualify, a company has to satisfy all of the following:
- Must be registered and based in Singapore
- At least 30 percent shares of the company must belong to a citizen of Singapore
The interest rate on this loan will be determined by the financial institution the company will be applying through. These institutions consider different factors such as credit ratings to determine the interest rate and qualification for the loan.
Businesses are allowed to repay this loan in instalment for a more extended period.