David Morey 
Nowadays, the success of companies trying to make their services and products known on national and international markets goes hand in hand with the amounts invested. Is your company active in a competitive field, and do you want to compete with players considered authorities in their fields? In that case, your business will need to benefit from the necessary capital for a significant investment. How can you obtain this capital? By procuring a business loan in Singapore. The services of private moneylenders can be crucial to facilitating the expansion of your business operations and modifying your company according to the latest market developments.
The Singapore-licensed moneylender you call will provide you with access to the material resources needed to purchase new business equipment or acquire a new corporate sub-branch that will enhance your organization’s profitability. Not least, obtaining a business loan can have a positive effect on your credit score. Do you plan to get a personal loan in the near future? Then, the credit benefits you obtain now could, down the road, help you get a lower interest rate. Private moneylenders can be an essential part of your business success and help you expand your corporate vision to new heights.
What Are the Eligibility Requirements?
Are you thinking of obtaining an advantageous business loan in Singapore? Then, your venture must meet a few criteria. Firstly, the maximum amount you can receive will depend on the age of your firm, your financial assets, and your field of activity. As a general rule, however, the amount you can receive for an SME micro-loan will not exceed $300,000. The moneylender you apply to will also ask for your firm’s BizFile, need recent financial reports, and, in some cases, may require a revenue and profitability roadmap.
The age of your business will also be taken into account. Was your company founded less than six months ago? Then, you will most likely qualify for an SME loan at a higher interest rate, with a loan amount of under $50,000. However, if your company was established a few years back, your credit score is above 1900, and you provide collateral for your requested loan, then the amount you can borrow may exceed $250,000.
What business loan is appropriate for your organization? That will depend on your desired repayment period and the amount you want to borrow. A typical business credit, without collaterals, must be repaid in a maximum of five years and imposes a limit of $300,000 per person on the maximum borrowed amount. On the other hand, if you want to benefit from government assistance financing, you could borrow up to 1 million SGD, with the caveat that your business needs to be a Singaporean-registered SME, with at least 30% ownership by Singaporean nationals. What to choose is up to you. However, business credits are more complex than other types of loans, and for this reason, lending conditions may differ from lender to lender.
What Are the Limitations?
Business credits can be a versatile tool to help you put your dreams into action and invest in the expansion of your corporate vision. However, because they involve more risk for lenders, they are also more challenging to obtain and might require extra documentation compared to personal or payday loans. Typically, corporate loans require a higher principal amount, and the lender to which you apply is likely to ask for documents like recent balance sheets, ACRA certificates, shareholders’ CBS reports, tenancy agreements, and business profitability reports.
The AER for the borrowed sum will depend on the terms of the lender. However, as a general rule, the maximum monthly interest rate will be limited by the provisions of the Moneylenders Act of 2008, which set the maximum AER to 4% per month, with a one-time credit processing fee that cannot exceed 10% of the credit amount. Corporate loans require a more extended analysis time, and for this reason, their application, although possible online, is best done face-to-face. Nonetheless, application processing time should not take more than seven working days. And the approval rate for these types of loans revolves around 25-30%.
What Is an SME Loan?
SME loans are financial borrowing packages explicitly designed for small to medium-sized enterprises. SME loans can be offered by both national banks and private financial lenders, and the terms and conditions that apply to them may differ depending on the age of your firm, credit score, and financial assets. Amounts offered in SME loans can range from $10,000 to $300,000, and their repayment period usually cannot exceed five years. SME loans can be used both for capital investments and for the acquisition or renovation of the business location. So, from this point of view, they are similar to personal loans.
Typically, SME loans are unsecured, but for amounts exceeding $100,000, collateral is usually required. SME-designated financial packages are generally suitable for established firms that are already operating at a high level. However, they can also be an economic tool ideal for small businesses active in competitive domains. Do you need a capital infusion that will facilitate your market growth? In that case, a start-up corporate loan with a borrowing cap of $100,000 might be a great choice.
Are you looking to purchase a new property that will be used to expand your organization’s footprint? If so, you could apply for a commercial property loan from a Singapore-licensed moneylender. The possibilities are endless, and they are only limited by the documentation you can provide. Using a licensed moneylender has become a common occurrence for the over 400,000 companies active in Singapore. And the reasons are easy to understand. Private lenders are flexible; they offer the same financial guarantees as national banks, and in many cases, their interest rates might be more favorable.
The Right Help for Your Organization
To succeed, your business must keep up with the current technological developments in your sector and attract the attention of your target audience. But things are easier said than done. Do you want your business to grow? Then, you will need capital. How can you obtain this capital? In most cases, by utilizing the services of a licensed moneylender active in Singapore. The moneylender you call will have the financial packages required for your situation and, in many cases, will be able to provide you with loans that are more convenient than those of traditional banking institutions.
What can you do with your newly acquired corporate loan? For one thing, you can invest in the expansion of your venture, cover day-to-day expenses, and finance the technological requirements of your activity. Then, with the rest of the cash, you could also invest in a comprehensive digital marketing campaign, organize an emergency fund for market dips, and purchase inventory that you use for the further development of your marketed products. Capital is the key to the success of modern businesses. And using the services of private moneylenders is the best way to obtain it.
