If you own a small or medium-sized business in Singapore, then you will surely face a time in your business journey when you will require financial assistance. This is okay when small businesses want to expand often; the required capital is not available to such owners. Being one of the biggest business capitals of the world, moneylenders of Singapore have come up with brilliant loan giving schemes. If you are wondering how much a small business loan is and how to go about acquiring it, then this article is perfect for you.
Read the FAQs given below, and see for yourself how to go about the whole process of taking out a commercial loan in Singapore.
Faqs About Commercial Loan Singapore
What Are The Different Types Of Commercial Loans That You Can Take Out In Singapore?
The up to 7 different types of business loans available in Singapore. These are as follows:
- Government assistant business loan schemes under the working capital loan and temporary bridging loan program.
- Unsecured business loans
- Merchant cash advance
- Invoice financing schemes
- Business first loan
- Business overdraft financial assistance
- Venture debt financing loans
How To Know If My Credit Score Is Good For Taking Out A Commercial Business Loan In Singapore?
Whenever anybody applies for a business loan, many factors affect it, and the credit score is one of the most important. If you have a poor credit score, then getting credit will be extremely difficult. However, to help small businesses, money lenders of Singapore generally allow people with even minimum credit scores to acquire business loans.
What Kind Of Business Can Apply For A Business Loan In Singapore?
There are no restrictions regarding what kind of a business can apply for a business loan in Singapore. It doesn’t matter whether your company is a professional landscaping one or even a restaurant; any small business owner can apply for a business loan in Singapore.
Can A Start-Up Business Apply For A Business Loan?
Start-up companies can apply for commercial loans in Singapore without any hassle. Special interest loans and free of cost financial advice are available for small search businesses to help them grow. These are legal money lending operations that the Singaporean government regulates. Therefore small businesses can avail the help they require without falling prey to unscrupulous illegal money lenders.
What Is The Application Process For A Commercial Loan In Singapore?
Every money-lending company of Singapore will have its own particular rules; however, the basic processes of most companies are as follows:
- You have to apply online by going to the official website of the money lender of Singapore.
- You have to fill in the online application process and submit the necessary documents prescribed there.
- The company will get back to you after going through your documents and completing the approval process.
- Once the loan is completed, the money lending company will give you solutions to help your business grow with the loan and take you through the whole paying back process.
What Are The Primary Documents That You Are Required To Submit To Take Out A Business Loan In Singapore?
The primary documents that you need to submit to apply for a business loan in Singapore are as follows:
- Your company’s business profile from ACRA (Accounting and Corporate Regulatory Authority)
- The notice of assessment of all directors of your company for the last two years.
- The latest CBS (Credit Bureau Singapore) report
- Your company’s financial statements for the previous 2 years. For newly formed companies, special provisions are there that you would have to enquire about.
- Bank statements of the company for the last 6 months of operation.
- Some companies might even ask you to submit the Accounts Receivables Aging List. This is a list of all the debts that your company has and how much your clients owe to you for your products or services are available.
How Can You Improve Your Chances Of Getting A Business Loan In Singapore?
Some of the best credit histories to increase your chances of getting a business loan in Singapore are as follows:
- Carefully submit all the documents asked by the company and make sure these documents are in perfect order. Any financial document of your company should be up to date and without any error.
- If you have any personal loan taken out, try to clear it before applying for a business loan.
- Make sure that you are taking the help of a financial advisor to take out the best loan possible to help your company grow.
Can Companies Not Registered In Singapore Apply For A Business Loan In The Country?
No. Only e companies that are registered in Singapore will be able to apply for or a business loan. However, this does not mean that you cannot have international operations.
Is Taking Out Business Loans In Singapore Secured?
Business loans in Singapore are incredibly secure. However, there are many unscrupulous companies out there, for you should only take out a loan that is operating following the codes under the Money Lenders Act. Luckily for you, the names of all such companies will be given on the official website provided by the government.
The FAQs on commercial loan in Singapore are going to help you when you are taking out a loan. Of course, the company you are picking out from where you will take out the loan will have its own set of rules as well. Don’t be afraid to ask pertinent questions about the commercial loan and get all the necessary information so that you can make the most informed decision.
Do not worry, as the commercial loan-taking process in Singapore has been deliberately made to be easy for every business owner. You have to do the necessary homework and then pick the best money lending company in Singapore.