How to Get Business Loans in Singapore in the Current Financial Crisis

Every type of business you can imagine has felt the effects of the financial crisis, one way or another. This ranges from the street vendors on the corner to multi-billion dollar companies across the World. Staying afloat in these uncertain times and keeping a roof over your family’s head is on every business owner's mind. Therefore, many are turning to financial help from loan companies. Finding a licensed moneylender in Singapore is a simple process that we will run through in this article.

How to obtain a loan

Step 1

The first step you need to do is to research the loan company you have found. If they are legitimate and reputable there should be plenty of information online about them. Check the reviews on Google and search social media for what people are saying about them.

Step 2

Check the company is registered with the correct Singapore authority and allowed to trade as a loan company. Unfortunately, there is some scam sites online that you need to be alert to.

Step 3

When you are comfortable with the loan company and wish to go ahead and apply, you need to check some other factors. How much interest do they charge? Are there any hidden fees? How much are the late fees? How long do you have to pay it back?

Step 4

Break down how much you need. It’s tempting to just take as much as possible, but you should be smart. Only take how much you require to help with your current situation and be able to pay back. Calculate the repayments with the interest included and the timeframe it’s to be paid in. If you are confident you can afford it, then you should apply.

Benefits of a business loan

Expand whilst your competitors are struggling. You can take advantage of the current situation and use the loan to benefit your business whilst your rivals may be scaling back. This can include advertising to gain more customers, buying more stock, or renting or buying another premise.

The money is yours to do what you want with it. When you are provided with the loan, the company or bank won’t dictate to you what part of the business it should be spent on. You have the freedom to choose how to use it.

Accessibility. Loan companies understand time is of the essence for business owners. You don’t have enough time to be spending hours over the phone or online trying to obtain funds. That’s why most will make it a straightforward process that’s not time-consuming.

Low rates. Generally, banks and companies that offer loans do so with favorable rates. They are competing for your business in a crowded market, so this is good news for you. Of course, they will still see a healthy profit.

The money you make is yours. If you’re taking a loan out to expand your business, this will mean more profit. Unlike a personal loan that may be for a holiday or some other expense, with a business loan you will see money come back to you, hopefully in many multiples.

How to Get Business Loans in Singapore in the Current Financial Crisis

Unfortunately, some companies out there will take advantage of the current situation and offer people in dire consequences high-interest loans. They should be avoided of course, and that’s why it’s important to research. Reputable companies do not need to ploy such tactics and can offer a great benefit to your business.

The most important thing to remember is only to take the loan out that you can afford to pay back. A loan can be sometimes secured against assets, so if you don’t pay it back you may lose your business.

You may not be guaranteed the exact amount you require, but you need to be completely transparent when applying regarding your finances. This will ensure they can make a correct assessment and be able to offer an amount you can afford.

Singapore has a great economy with small, medium, and large corporations based here. Hopefully, the current situation is only temporary, and it will bounce back soon. In the meantime, if you do apply for a loan, just follow the guidelines in this article to obtain your loan and boost your business.