Things To Know Before Considering A Business Loan In Singapore

Regardless of whether you’re just starting up a business or expanding it, you will always find a reason to apply for business loans in Singapore. Having this type of loan means that you will be able to finance your business needs when you’re unable to. Similar to the types of business loans available in the industry, there many why a company owner would get business loans in Singapore. From the need to have vehicles, equipment, real estate up to the company’s daily expenses, enterprise owners go to lenders to provide loans to finance their business needs.

To secure the loan, some lenders require collateral such as a vehicle, equipment or a real estate being purchased with the loan. The interest rate will vary depending on a number of factors including your credit rating.  Some business loans offer the guarantee of a fixed monthly payment as well as a fixed interest rate. However, variable rate loans may also be available.

When applying for a loan, keep in mind that the first thing that the lender will inspect is your credit worthiness and ability to repay the loan. This is easy if you already have an established business since it has a proven track record and can deliver financial statements from previous years that can prove growth and profitability.  However, a start up business might find this as a disadvantage since the company still lacks track record of any type. The business will also have to overcome this disadvantage with excellent business planning and a well planned marketing strategy to show how the business will profit over time to repay the loan.

It is important to be prepared by checking your credit reports and be familiar with your credit history when applying for a loan.  Keep an eye for inaccuracies and errors so you are confident that you are delivering factual documents to your lender.

For further details about business loan for company needs, check out Capitalize. Visit their website and discover why a lot of businesses in Singapore trust their company.

Capitalize is a corporate loans specialist firm that helps Small Medium Enterprises (SMEs) and individuals to seek, source and obtain capital from across our established network of up to 30 banks, financial institutions, funding houses and alternative platforms. We are always committed to provide our clients with the most suitable loans according to their needs, from the lowest interest rates possible and at the quantum they require.