Is one ready to get their first business loan but unsure of how to go about it? No worries, one can find out all that they need to know here and learn to check everything that needs to be checked. At money lender’s websites, one can also read about and find out about some of the best SME business loan interest rate. There are money lenders who lend business loans at a low interest of only 2 to 7 per cent. And they lend money business loans amounts as high as $300,000. But before one can get a good business loan, they need to be able to qualify for it. There are all the minimum requirements for one to get themselves a business loan.
Qualifications Required For A Business Loan:
One can check their eligibility to know if they qualify for a business loan so that they can get one. This can also help one get different types of loans available to them if they qualify. One can choose from all these different kinds of loans. These are the qualifications one would require to secure a business loan:
- The interested person should have a company that is a Private Limited Company registered with the ACRA. This way, the lender would know if they have an authentic company and that the loan will be used for business purposes properly.
- There should be at least one Singaporean director in the company.
- The company must have at least one Singaporean director. They must be either a permanent resident of Singapore, a foreigner residing in Singapore or a Singaporean.
- The company should be able to earn a minimal annual revenue of at least $100,000.
- The company should be actively working in the industry for at least ten months. Though, newly set up companies with a slightly lesser operating time could also get and if they have a good credit score.
After one has qualified for a business loan, there are several options one could choose from, with different types of business loans. And one can choose from these diverse options because loans are for different situations. To qualify for even more types of business loans with more amount of money, one can try to improve their creditworthiness. One can do this by keeping a decent credit score. One can get loans even with an empty or clear credit score sometimes. But having a good credit score opens up more options to one.
The process for getting all those types of business loans are the same, though. And one should know this process if one is getting a business loan. This is so that they can prepare for it well and go through all these procedures smoothly.
The Process Of Getting The Business Loan:
Getting an SME loan Singapore is, despite what some may think, is quite an easy process. One can understand these simple procedures here:
- For applying for a business loan, one has to visit the money lender’s online website and request a call back. They will then call one within 24 hours. In the meantime, one can fill in their loan application along with the required documents.
- One must then fill in the loan application with all their necessary information. One will also have to upload some required necessary documents. One can do this electronically by using their scanned copies. These documents consist of these:
- All recent bank statements of the latest six months.
- The company financial statements of the past year.
- The latest CBS or Credit Bureau Singapore Credit Report of the applicant(s).
- The latest MLCB or Moneylenders Credit Bureau Report of the applicant(s).
Additionally, one can also any other documents they think may be relevant to the application of a loan. Like, provide ageing reports, important upcoming contracts, expected invoices and any other documents.
- They could then submit the loan application. It will be swiftly approved by the moneylender. And one can get ready to sign the contract.
- One should read all the details of the loan agreement contract in fine print to understand it well and then sign it.
- The business loan funds will then be quickly sent to one’s account by the moneylender. One will receive the loan amount soon, within only 24 hours of applying for it.
Now that one knows how to get a business loan, they should also know about paying it back. One should never take a business loan if one cannot pay it back. It can make life quite a struggle, trying to pay loans back. And it could also put a lot of strain on the company. Some money lenders have a very flexible payback structure. This makes it easier to pay back the money. Repayments can be made once a week, twice a week, or once a month over a 2 to 12-month term.
You may also be interested to read about consolidation loan Singapore.
