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What is a business term loan?
So there is this unsaid common rite of passage that small and medium businesses experience. It is usually a lack of funds. However, the truth is that your business does not have to go through the same ordeal. To save your business from the dilemma of limited funds, you can obtain loans at reasonable and convenient repayment plans.
It is no news that every loan agreement contract contains some term and condition, so you, therefore, have to consider the terms of each contract before agreeing to it. By the laws guiding loans in Singapore, moneylenders have the responsibility to explain the terms of their contract to you before an agreement is reached. Also, it is advisable that you do not sign to a contract whose repayment plan or interest rate is not convenient for you. Avoid any agreement that places a caveat on your property such that you cannot sell your property to pay the loan. This is true because eventually, such caveats leave little or no proceeds from either the loan or the sale of the property. Even if you’re desperate to get a loan, you should check out different moneylenders for the most favourable terms to be sure you have the best offer you can get.
What to expect when you take out a loan from a licensed moneylender?
You must understand, that the maximum interest rate as prescribed by the law is 4% per month on every late repayment. Therefore, contracts that demand higher rates should be null and void under the law. This interest will only apply on the rest unpaid principal in case you have repaid part if it. Also, this interest is on money paid late.
Knowing fully well that some loansharks parade themselves as licensed moneylenders, you must understand that you have to verify if they are licensed by checking the list of licensed moneylenders. Even if they are verified, you should still be careful of moneylenders who use abusive language or threatening gestures, who ask for your singpass ID and password, who retain your NRIC card or any other ID documents, who ask you to sign incomplete or blank Note of contracts, who grant you a loan without exercising due diligence or giving you a copy of the agreement.
After being granted the loan, make sure you get the correct principal amount of the loan. The moneylender is only permitted to deduct 10% of the principal amount as your loan approval fee upfront. You should pay the loan instalments on time. You should make sure to receive a receipt on all repayments and bank statement every six months. Don’t forget to check for the correctness of each document.
Business Term Loan from SGP Credit
What is more important is that SGP credits offers you all the requirements above and even more.
We offer secured loan facilities which vary according to your needs and capacity. We offer short or medium term, as well as longterm loans. These loans, of course, are available to entrepreneurs and SMEs. SGP credit provides working capital loans to sustain your productivity and financial performance.
Our interest rates are very reasonable, and our repayment plans conveniently. While you can pay the interests on short term loans monthly, the principal may be paid within the loan term.
We assure you that SGP credit is the best money lending service for you. For more information, fill up our loan application form and hear from us as soon as possible.