Applying for Business Term Loans in Singapore: 3 Things to Ask
Applying for Business Term Loans in Singapore: 3 Things to Ask
Blog Article
Funding is the most critical tool for businesses. You may have a promising idea for a profitable venture, but without adequate capital or financial support, that could remain simply a plan.
In Singapore, several institutions, from the largest banks to SME financing platforms, offer entrepreneurs the opportunity to pursue business concepts through financial assistance.
As a business owner, one of the biggest questions you'll probably ask is whether you should be taking the plunge. What should you know before applying for business term loans in Singapore? What are the requirements and does your business qualify?
To help give you an idea, we’re answering these common queries and more in this post. But before that, let’s quickly discuss what a business term loan is.
What is a business term loan?
It’s an unsecured business term loan, which means you don’t need to submit collateral. However, the loan amount you can apply for will depend on the cash flow of your business.
You don’t need to head straight to banks, as many organisations offer them to small and medium-sized enterprises. Typically, these loans come with a fixed interest rate and can be either short-term or long-term.
While potential sources for business loans have grown, it’s still important to practice due diligence, study available choices carefully, and find out which option is the best for your situation.
What to ask about business term loans in Singapore
Before applying for business loans, it’s important to ask certain questions.
- What do I need the funding for?
The amount of funds you’ll need depends on the purpose for which you’re using them.
Setting clear goals will allow you to decide between applying for a short-term or long-term loan. This will also help you and your partners, if you have any, figure out if getting loans is the best solution to your needs.
Consider when you need the money to narrow your choices. If you need it urgently, then you’ll have to look for companies that offer fast loan approval and disbursement.
- Can we afford it?
As with any type of loan, you’ll have to prove that you can support it. That means you’ll need to show that your business has a healthy cash flow.
You must prepare the necessary requirements for evaluation. You must also be willing to comply in the event that further assessment is required. So, right from the start, ask which documents they need, so you can also gauge whether the process will be simple or complex.
Note that not all sectors can apply for business loans. It also depends where you’re going, as some institutions may be offering it to the type of industry your business is in, while others may not.
- Are microloans available for small businesses?
Yes, there are institutions that offer microloans to start-ups and small businesses.
These loans have the advantage of frequently offering competitive interest rates and making them much more accessible through a simplified application process.
Even if you’re only starting your business, you may be eligible for substantial funding as experts assist you in tailoring financial solutions according to your specific needs.
Taking the first step to applying for business loans
You can reach out to the institution online or request a meeting. Before reaching out, be sure to prepare the information they're likely to ask about, such as your loan purpose and credit history.
It's okay to raise many questions, as that will also help you find out which team is easy to communicate with and is the right fit for a business partner. Report this page