FREQUENTLY ASKED QUESTIONS (FAQ)
Getting a loan at SingBusinessLoan is something we would like to simplify for all our potential clients.
To that end, we have gathered the most frequently asked questions and provided the answers here for you.
- Whenever people apply for a business loan with us, we look at a variety of factors. Your credit is simply one of the many factors that we must take into account. If you have poor credit or if your credit is not established, we do what we can to find strengths in your finances or business in order to still make it possible for you to get approved for the loan It is important to note that in some areas, we have credit score minimums, and firm requirements on bankruptcies and due debt. Look through the loan requirements so that you can be sure that the loan fits you well.
- Those who choose to work with us do so for several different reasons not just because they can access loans. We have put in place a team of people who will walk you through the application process, be there for you during the life of the loan and are available to advise you even beyond that. We are able to connect you with local lenders, organizations and peers who can give you opportunities to grow. Feel free to call us whenever you need to speak to us.
- We have committed ourselves to helping small and medium businesses thrive and grow, and we work with businesses that are struggling to find funding. We offer loan sizes that are smaller and make sure that our processes look at other factors and not just the credit score. In addition, our terms and conditions are designed to meet the needs of our clients.
- Not at all. We work with businesses that are in a variety of industries including retail sales, professional services, landscaping, construction, restaurants, transportation and many more. We aren't that biased :)
- Yes for sure. SingBusinessLoan.com has worked with many startups in the past. Basically, in order for your startup business to qualify for a loan, you need to have another source of income besides what the business is bringing in. This other source of income is used as a support for the loan. In order to know what is specifically needed as a prerequisite, you should check our loan requirements.
- It all begins with you submitting your loan application online. We get in touch with you in a few hours time and tell you if you are a great fit for us. If indeed you are, then we will have one of our lending team members get in touch with you and they will work with you on an individual basis to put together a loan application that is as strong as possible. After this basic level of approving your application, you will then need to also send over supporting documents that will be used to confirm or to back up the information you have put in the application. These documents are necessary to help us get a better understanding of the business situation you are in.
- In the event that you do not qualify for our business loans at this time, then we will make sure to give you all the information you need to help improve your financial situation and your business, so that when you put in another application at a later date, you have a better chance of qualifying. In about 3 to 4 months, you can make another application.
For secured loans, there is actually no limit in the loan amount. But one of the most important thing to remember is that you should never borrow more than you actually need. Whenever you are filling in a loan application, you should take the following into consideration:
• Loan usage: Figure out what you specifically need the money for and how much it will cost for you to do it.
• Monthly payments: Think about the repayments you will be making every month on the loan. Can you comfortably afford those payments?
- The first thing to remember is that at SingBusinessLoan.com, we only provide secured business loans. In order to provide this loan to you, the business is required to put down a guarantee on the loan. In most cases, you are also required to give a personal guarantee as well. You can speak to one of our lending officers if this step is necessary after you submit your loan application.
GENERAL FAQ ON BUSINESS LOANS IN SINGAPORE
Here we cover General FAQ about Business Loans in Singapore.
Well, if you were to speak to a traditional financing institution such as a bank, you will find that they have a limit on just how much money an SME can borrow. This figure tends to be different in each bank. The maximum amount you can borrow also takes into account your company profile. The bank must look at your cash flow, the industry you are in, the amount of revenue you generate every year and so on.
As the business grows and expands, you will likely begin taking on bigger projects. Such projects will require additional working capital in the form of a loan. When applying to banks, some of the companies may find that their application is rejected because they require more than the imposed maximum limit amount.
It is a good idea to ensure that you speak to a variety of financial institutions and establish credit relationships, thereby spreading the risk. You should do this as you take note of your growth potential, which may require that you source additional funding in the future. The idea is to find out more about their business loans including their terms and conditions, the maximum amount you can borrow, what requirements they need in terms of supporting documents and the like.
By speaking to SingBusinessLoan.com, you will be tapping into a wide network of financial institutions. We can connect you to the right financial institutions and business loan products that you are looking for. Additionally, we are happy to walk you through the requirements of the various lenders and find those that are most suitable for you.
For SMEs, it takes between two and four weeks for your business loan application to be turned around. This particular timeframe has been set for the following reasons:
(1) To give you time to familiarize yourself with the loan application process and with the documentation required to support your application. This ensures that you prepare and submit the same.
(2) It allows time for you and the financial institution to communicate and ensure that the application is filed correctly and that the right supporting documents have been filed.
Depending on the urgency of the situation, we can also shorten this timeframe to between one and five days since we have an understanding of the information needed by the various lenders, as well as the documents they ask for. By tapping into our knowledge, experience, and expertise, you will have all the resources you need to find the right funding for your business.
Many businesses find themselves in a situation where they have an urgent need for funds for a project. However, when they put in their application, it ends up rejected. This often means that they need to stall their business project or cancel it altogether. This in turn could mean that they lose a large amount of money in profits because they end up missing this opportunity.
Unfortunately, once an application has been declined, the business may not be eligible for re-application to the same lender for as long as three to six months.
Most of the financial institutions offering business loans reject applications for a variety of reasons. Some of those reasons include:
• Loan limits that have been put in place by the existing lenders
• The credit profile of the business owner
• Speaking to the wrong bank for funding
• Not understanding the financials presented
If you are looking for additional working capital, you will find a myriad of loan products available that are designed to fit the needs of SMEs. Some of the more common loan facilities targeting Small and Medium Enterprises include the following:
• SME micro loans
• Trade financing
• Receivables financing
• Term loans
• Asset financing
• Working capital loan
• Factoring
• Financing that is project based
In order to figure out which is the most appropriate loan for you, you will need to work through the technical jargon and complexity that goes with it. We provide you with the experience and expertise necessary to ensure that you secure the very best SME financing for you. We will explain the various products and break down the jargon into basic terminology that you can understand. Additionally, we will let you know the best way to use the various products to grow your business.
Small business loans to SMEs are offered by over 100+ different financial institutions and banks in Singapore. Interestingly, you will find that some lenders are more than willing to fund particular industries while they shun others. Additionally, each lender has its own risk appetite and credit criteria. As such, we cannot give you a definite answer to this question.
Unfortunately, many business people out there do not know which lenders are more receptive to their applications, or which ones would favor their particular company profile. As such, they end up wasting their time by putting in applications to banks that are not receptive or are not the right fit for them.
At SingBusinessLoan.com, our core business is to assist SMEs in acquiring the finances they need. Since we are familiar with the credit requirements of the different financial institutions, we can look at your business profile and help you identify a loan that is most suitable for you. By so doing, we can help you increase your chances of securing approval for the loan at the very best terms possible.
Once you apply for a loan, the financial institution will have to look up your personal credit record. Your credit report will then be taken into account when they look at your loan application. If you have a low credit rating, then chances are that your business loan application will be negatively affected by it.
This is because you are the director of the company and it is therefore tied to you and not to the business. It is important to note that if you were applying funding for a different business in which you are listed as a director, the application could possibly also be affected by the low credit rating.
One of the reasons why your credit rating tends to become low is by putting an application for funding to many different financial institutions unsuccessfully. Every time a lender rejects your application for a business loan, your credit rating could potentially drop. That is why it is not advisable to simply put in applications wherever you can.
In truth, if your credit rating is low, it will lower your chances of having future business loan applications approved. Our SME specialists can help you identify the various banks and other financial institutions that have credit criteria that is suitable to your business profile, so that you can maximize your chances of approval for a business loan.
It is possible however, you need to know that if you are a startup, your options are quite limited. It is important to remember that most businesses generally do not fund startups especially if your business is newly registered.
Your service or product may have a lot of potential for growth, but getting the necessary funding from a lender will still remain a struggle especially in the initial phase of the business.
Your business track record is an important factor when banks are appraising your loan application. They require that you at least have been in operation for one to two years. If you have just started the company and are still in the phase where you cannot attribute any revenue to the business yet, then the best option for you is to approach venture capitalists or look for equity financing. This is definitely better for you than talking to banks for debt financing.
Our business financing consultants are competent and capable of helping you find a business loan for a small business if you have been in business between 6 months and 1 year. You need to be ready to deal with limited options though, as well as funding amounts that are not as large as you would hope. However, this is just the beginning and as you prove yourself, you could become eligible for better terms and larger amounts. Click here to start your loan application today.