Business loans in Singapore are an option for the startup or expansion of your business.
Where can you apply for a business loan in Singapore?
There are banks to which you can apply for a business loan; however, some of those banks will want your business to have profits over the past two years. You will need to check on the requirements of the lending institution as well as the interest rates.
What you can use a business loan for
A business loan can be used for expansion, large items needed to perform the work of the business (for example a printing press), or other workplace improvements.
Workplace improvements can include new equipment to make production faster, safety equipment, or items in which keep the climate protected such as clean air and water.
Tips for applying for a business loan
Before you apply for a business loan, there are things you should consider.
- How much of a loan do you need in order to replace equipment or to get through a rough patch in which the business may need extra cash flow?
- How long do you need in order to repay the loan and how much you can afford to pay on the loan each month?
- Before going to the bank or lending company; write out a plan that includes expenses for new equipment or what it is you need the loan for, the current expenses of the business, and be sure to show the profits of the business for the past two years. Also,f include in that plan what the possible profits will be with the added equipment or expansion.
By showing the bank or lending company that you have given serious thought to your needs, the repayment, and the profits of the past two years as well as the profits the upgrades will increase show the lender that you are serious about your business.
How to compare lending institutions
You can check various lending institutions such as banks and lending companies by visiting their websites.
Things you will want to compare;
- Interest rates
- Payment schedules
- The procedures in applying for a loan
Comparing these things will give you a better understanding of what you need to do, how you need to do the paperwork, and what you can expect for interest rates and payment rates from each institution. This will help you be ready when you do choose an institution to apply with for a business loan.
Conclusion
Applying for a business loan does not have to be difficult so long as you pay attention to details and do your research.
Knowing what you need, how you plan to use it, how you will repay it, and what you will reap from that loan (more profits) is a good start in making sure that you qualify for a business loan.
Understanding the procedure of the lending company also puts you on more solid ground when securing a business loan in Singapore. Just follow the tips above to get started on securing that loan.
About Morris Edwards
Morris Edwards is a content writer at companyregistrationinsingapore.com.sg, he writes different topics like What are the types of Loans in Singapore, Build a safe and healthy workplace and all topics related to Business, Singapore company registration.