Your Trusted Corporate Loans Specialist +65 6717 8681 enquiry@capitalize.com.sg
7 Things You Didn’t Know About Your Credit Bureau Report
12 Aug

7 Things You Didn’t Know About Your Credit Bureau Report

Most people would likely not have heard of or seen their own credit bureau report before unless they have previously taken a loan from credit providers in Singapore. Otherwise known as a credit report, it shows records of your repayment history with most credit providers in Singapore.

A credit report displays credit facilities tied to your personal name particularly your credit cards, personal loans, overdrafts, property loans as well as your motor vehicle (car) loans. As credit worthiness is essential for lenders prior to making a decision, a good repayment history will make it easier for you to obtain credit or to qualify for other types of loans in future like a business loan in Singapore.

 

  1. Your HDB Loan/ Motor Financing Loan from private firms are not visible on your credit report

Your CBS displays the personal credit facilities you have only with banks in Singapore. Thus, the repayment history will only include your housing loan or motor vehicle loans should they be from a bank. Loans taken from in-house or private financial institutions are not visible on your CBS.

 

  1. Your CBS will also affect your business loan application

Even though the CBS keeps track of your personal finances history, it is also an important factor to take note of for a business owner that is looking to obtain a business loan in Singapore. Regardless of what types of loans that you might look at to acquire in future, your CBS is a determination of this 3 Cs: Character, Capital, Capacity. If you can’t even handle your personal finances well, how assured will the lenders be towards your company finances?

 

  1. It displays your repayment record history for the latest 12 months

12 Cycles Photo

(Source)

 

  1. Everyone has a credit score

The credit score is a number that indicates how likely an individual is to repay his debts and his/her probability of going into default. It is a 4-digit score ranging from 1000 to 2000. The lower your score, it displays a high likelihood that you would not be able to repay your loans and in turn, the lenders will turn down your loan application.

Credit Scoring

(Source)

 

  1. It’s harder to get any forms of loan facilities if you do not have any credit records

Credit Account History determines that a consumer with a long established credit history is deemed to be more favourable or reliable than one who has limited or no credit history. Without a previous track record, lenders are unable to determine your character in loan repayment. Start off with credit cards first and show prompt and full payment for a couple of months so that the lenders will know. This will help you in the long run.

 

  1. Every single time you apply for a credit card or loan facility, your CBS is purchased by the lenders once

The records from your CBS report will show how many times you’ve made a new application and should you have too many newly applied for credit facilities in a short period of time, it will affect your credit scoring.

 

  1. You have 1 FREE CBS report!

Apply for a new credit card and you get a free credit report! Announced on the 21st of March, Credit Bureau Singapore launched this initiative to empower consumers to review their credit report regularly. It can allow you to be aware of your own history records and credit scores. It also protects you against possible fraudulent use of your personal details to obtain credit. (Source)

You can get your free CBS report over here: http://www.creditbureau.com.sg/free-credit-report

In every personal loan application process, other factors such as your annual salary, length of employment and bankruptcy/litigation records will also be taken in account besides your CBS report. In company loan applications, besides what is mentioned above, your company financial statements also play a vital role in a successful application.

 

Capitalize is a corporate loans specialist firm that helps SMEs to seek, source and obtain capital from our established network of 35 banks, financial institutions, funding houses and alternative platforms. With sincerity and integrity, we are always committed to deliver a high level of service quality and provide our clients with the most suitable loans for them to grow their businesses to the next level. 

 

 

How To Choose The Right SME Loan Consultant For Your Business?
22 Jul

How To Choose The Right SME Loan Consultant For Your Business?

As a business owner, chances are that you would have heard of a SME loan consultant/ broker or might even have engaged one before. Generally, a loan consultant assists commercial clients in achieving their goals by finding them the right lender. As business owners prefer to save on time and hassle, or when lenders are unable or unwilling to provide the necessary loan, a loan broker will then achieve better terms for you from their experience and network.

It is important to seek and engage the right SME loan consultant for your business. Here are some pointers to look out for to make sure you are in good hands:

  • What is the consultant’s experience in handling your application? 

Find out some basic information about the loan consultancy firm online – their establishment and track records of the type of clients they have assisted previously. Look out for testimonials. Some brokers have more experience dealing with certain industries than others. Find a firm that has dealt with clients of a similar trade to yours; they will be able to advise you on facilities suited to your cash flow needs.

  • Does the consultant help you to analyse the financial performance of your company?

A professional loan specialist is able to review your financial documents and provide an accurate analysis of your company’s financial standing. They will be able to provide you with an unbiased opinion and advise you on whether it’s the right time for your company to explore additional debt.

  • Were there any over promising on the amount of funds obtainable for your business?

With a proper analysis conducted, an experienced SME loan consultant will be able to give you valuable insights on your business performance and potential pitfalls when it comes to the use of debt leveraging. Also, being aware of the probability of your loan being approved can help in making decisions and capitalizing on opportunities.

  • Do they see your business the way you see it?

Scaling to greater heights and achieving financial stability/freedom is what every business owner aims to achieve ultimately. Find a loan specialist that genuinely wants to help bring your business to that level. Find one who cares enough about your business to go the extra mile for you and is there to direct your company not just on your finances, but also other aspects of your company where that extra capital can come into play. Find one that aims to be there for your business at every stage of your growth.

  • Do they provide you with resources or connections to improve your business?

Working with a SME loan consultant, especially one you have forged a good working relationship with can give you access to a solid network of people who might be able to help your business at one point in time. Keep in mind that loan brokers not only do have access to lenders but they also have a connection with numerous business people of various industries due to the nature of their trade.

While hiring a loan broker would incur additional expenses, but a good SME loan consultancy firm will make you realize it is money well spent after all.

Capitalize is a corporate loans specialist firm that helps SMEs to seek, source and obtain capital from our established network of 35 banks, financial institutions, funding houses and alternative platforms. With sincerity and integrity, we are always committed to deliver a high level of service quality and provide our clients with the most suitable loans for them to grow their businesses to the next level. 
Starting a Business in Singapore? Avoid These Common Blunders
18 Jul

Starting a Business in Singapore? Avoid These Common Blunders

For many entrepreneurs, starting a business in Singapore comes with incomparable benefits that are hard to miss—low-tax policies, first world infrastructure, and ease of doing business, to name a few.

However, starting a business is not without any challenges, even in a business setting as ideal as Singapore.

Fortunately, while making mistakes often comes with the territory, you can dramatically reduce your risks (and losses) by avoiding the following common business blunders:

Not properly preparing for a pitch

If you are still looking to raise more capital for your business, it is imperative to spend a substantial time perfecting and polishing your pitch. The secret to raising the needed capital is actually very simple. You just need to show prospective investors what they want—the potential of your business for profit and growth.

Make sure you do not waste both time and opportunity by coming in unprepared. Come up with a robust business proposal that will indicate and detail your prospective growth targets.

Also, exercise the same vigilance and preparation when you are applying for a business loan in Singapore. Have all the needed financial documents handy and prepare to answer all potential questions relating to your business as well as your finances so you can increase your chance of getting approved.

Not having a solid business plan

Make no mistake about it, a business plan is more than just a ticket that will help you get necessary funding. More than anything, it is your guide as to where you want to take your business and how you are going to go about it. Without a thorough business plan, you will be shooting aimlessly, without even the slightest idea as to where your business is going.

Keeping networking to a minimum

When it comes to business, it pays to never leave any stone unturned. The same is true when it comes to networking. Come to think of it, no matter how talented you are and how brilliant your business concepts may be, nobody will be able to appreciate it if you don’t spend time networking.

If truth be told, networking is as important as capital to any budding business. The wider and the deeper your engagement is with your network, the more likely you are to succeed. Seasoned entrepreneurs and business magnates often recommend dedicating time to establishing contacts and forging relationships.

A good way to do this would be to attend events, fairs, and conferences. It will be the ideal time to highlight what the business can offer and establish good relationships with potential customers. After all, it has been proven time and again that people would always prefer to do business with individuals they have forged good relationships with.

Not getting professional help

As you go along and as your business grows, you will realize you will need help in a lot of areas like compliance, legal, accounting and finance among others. When it comes to getting the help you need, the importance of hiring a professional cannot be overstated.

Sure, having family and friends perform services only professionals are supposed to do might seem like a practical idea at first glance. However, nothing can be farther from the truth.

The thing is if you do not get the services of the right people, you can end up facing legal suits, severe losses, and even burned bridges. As a seasoned entrepreneur aptly put it, “If you think it’s expensive to hire a professional, wait until you hire an amateur.”

Do look for a recognized SME loan consultancy when applying for a business loan in Singapore to help you facilitate the process quickly and when done right, a business plan will not only help you get a loan, it will also help you stay organized and on track.

Capitalize is a corporate loans specialist firm that helps SMEs to seek, source and obtain capital from our established network of 35 banks, financial institutions, funding houses and alternative platforms. With sincerity and integrity, we are always committed to deliver a high level of service quality and provide our clients with the most suitable loans for them to grow their businesses to the next level. 

 

5 Advantages of Business Valuation
22 Jun

5 Advantages of Business Valuation

Simply put, business valuation refers to the process and the set of procedures employed to determine the economic value of a business.

While it is unfortunate to note, many business owners have an unrealistic idea as far as their company’s worth is concerned.

This is not surprising as according to a Harvard Business Review article, research indicates that people often attach a higher value to the things they own as opposed to things that are not theirs.

Taking into account the stakes and the complexity of the process, business valuations are best left in the able hands of professionals.

What are some of the approaches used in business valuation?

Market approach

As the name implies, this approach will rely on signs from the market to determine the value of your business. In this approach, the so-called economic principle of competition is taken into account:

What is the worth of other businesses similar to mine?

Understandably, if you are looking to buy a business, you would need to check the “going rate” for that business type before taking the plunge. If you are planning to sell your business on the other hand, you will obviously need to check the market to get an idea what similar businesses are worth.

Asset approach

This approach takes into consideration the assets and liabilities in order to come up with a clear picture of the value of the business. Sure, this may sound simple but this approach can be a bit tricky. The challenge often lies in the details—what assets and liabilities should be included, determining the worth of each, and picking a standard when it comes to measuring value, to name a few.

Income approach

The income approach will not only take into consideration the money the business is likely to bring but will also take into account the risks. While businesses have projected profits or revenues, there is also the risk of getting only a part (or none at all) of the projected returns.

What are some of the peerless benefits of business valuation?

You will get a clearer idea of what your company is worth. Many entrepreneurs do not have the slightest idea what their business is worth. Others who assume they know often end up realizing they made the wrong assumptions. If you want an independent, accurate, and unbiased opinion, hiring a professional to perform the business valuation is the best way to go.

You will have a better insight of the company’s financial condition. Most business owners often think they fully understand the financial health of their business. However, keep in mind that making wrong business assumptions can be costly. That being said, it is in your best interest to have an independent analysis and review done so you will have an accurate insight into the company’s current financial standing.

You will be able to make faster decisions when it comes to selling, buying, and mergers. If you are considering selling, buying, or getting funding for your business, a business valuation can help you decide faster and strike while the iron is hot so to speak.

You are able to better understand where your company fits in the business landscape. Business valuations will provide insight into your specific industry and will give you an idea of your industry’s current competitive landscape. You will also get information as to the market price of companies that are publicly traded and are involved in your line of business.

It helps you stay current. Without doubt, the market is very dynamic and is constantly changing. In line with this, consider it a must to have routine business valuations done especially since the economy, industry, and your company will be evolving continually.

Capitalize is a corporate loans specialist firm that helps SMEs to seek, source and obtain capital from our established network of 30 banks, financial institutions, funding houses and alternative platforms. With sincerity and integrity, we are always committed to deliver a high level of service quality and provide our clients with the most suitable loans for them to grow their businesses to the next level. 
Why Pay For A Loan Broker?
09 Jun

Why Pay For A Loan Broker?

Many entrepreneurs can attest to this — owning a business is no walk in the park.

While the financial rewards can be incomparable especially once you become established, oftentimes, you would need to survive one hurdle after another before getting to that point. This is especially true in highly progressive countries like Singapore where competition can be really stiff.

More often than not, the most common dilemma that all entrepreneur would face involves financing where businesses would need additional funding at one point or another.

Fortunately, this is one aspect a seasoned loan broker in Singapore can effortlessly help you out with.

What benefits do you enjoy when you hire a loan broker? Below are some of the key advantages you can’t afford to miss out on:

Best deals.

A seasoned and well-established loan broker in Singapore is an expert at providing you with the best possible deal there is. In most instances, that is one of the key aims of any loan broker. If you think that objective is not met, it would be best to move on.

Think lower interest rates, higher chances of approval and no hassle on your end. You can focus on running your business without having to worry about money issues as there’s someone to take care of that for you.

Fast turnaround.

The consummate loan broker in Singapore will take care of the internal underwriting on your behalf. That would mean you can expect a really quick turnaround.
Ideally, a reputable loan broker can provide you with results in less than two business days. In most cases, they can also deliver the funds just as fast, approximately in less than 2 weeks’ time. Bottom line, assistance from loan brokers can prove very valuable if you need money and you need it fast.

Dedicated help.

Loan brokers are not only adept at getting you the funding you need, they are also keen when it comes to helping you grow your business. Case in point—loan brokers identify your current financial standing, revenue projections, and your business needs so they can provide you with the best deals possible.

Understandably, as a borrower, the last thing you need is a loan broker who does things half-heartedly. Always opt for someone who would be willing to offer enlightenment whenever you need it and answer any questions you have in mind.

In essence, only work with loan brokers that have your best interests in mind.

Saves time.

One of the main reasons many business owners seek the help of seasoned loan brokers is because it saves them precious time—valuable time they could otherwise use to take their business a step ahead.

Since the loan broker will handle all the negotiations for you, you can carry on with your business. That means you won’t have to worry about spending hours with potential lenders just to secure the necessary funds.

Aside from sparing you from all the inconveniences, loan brokers can easily tap into a network of elite lenders. The best ones have a big portfolio of business dealings that encompass various lenders as well as client types.

Establish relationships.

Forging a robust business relationship with a seasoned loan broker can be a catalyst in your business growth. Multiple deals with a trusted broker can be beneficial for both parties. Repeat business can mean additional revenues for the broker. In return, most brokers will get clients they’ve established a good relationship with involved in newfound deals like refinancing so they can enjoy lower rates.

Networking opportunities.

In the highly competitive world of business, getting all the help you need would be advantageous. Working with a loan broker, especially one you have forged a good working relationship with can give you access to a solid network of people who might be able to help your business at one point in time.

Keep in mind that loan brokers not only do have access to lenders, chances are they also have a connection with numerous business people of various industries they have done business with. For instance, if you are involved in the creation of custom made clothing, your loan broker might be able to introduce you to a fabric wholesaler who might be able to offer you discounts.

While hiring a loan broker would seem like an expense you can do without at first glance, nothing can be farther from the truth. Once you enjoy all the unbelievable benefits they have to offer, you will realize that it is money well spent after all.

Capitalize is a corporate loans specialist firm that helps SMEs to seek, source and obtain capital from our established network of 30 banks, financial institutions, funding houses and alternative platforms. With sincerity and integrity, we are always committed to deliver a high level of service quality and provide our clients with the most suitable loans for them to grow their businesses to the next level. 
SG Budget 2016 Notable Changes for SMEs
11 May

SG Budget 2016 Notable Changes for SMEs

In the announcement of this year’s Singapore Budget 2016, Finance Minister Heng Swee Keat has highlighted a few key initiatives that will specifically tackle issues and challenges faced by SMEs. Here are the following changes that are particularly notable in which all SME owners should take note of:

  1. Higher Corporate Income Tax Rebate (CIT)

The existing CIT rebate will be increased to 50% of tax payable, up from 30% currently. However, there will be a cap of S$20,000 rebate each year for Years of Assessment (YA) 2016 and 2017.  This move can potentially help SMEs better manage rising costs with a higher rebate from the government.

  1. Business Grants Portal

Besides the most commonly heard of ICV vouchers and PIC grants, many business owners have faced difficulties accessing the hundreds of grants available. Some do not even know that there are other grants besides this two. Launching in Q4 2016, SMEs will be able to gain access, seek the most relevant grants for their industries and find out the criteria to these schemes easily. The portal will include grants from IE Singapore, Spring Singapore, STB and Design Singapore for starters.

  1. National Trade Platform (NTP)

With technological advancements used to streamline processes, the government will be developing the next generation platform to enable data sharing among businesses and the government. Particularly supporting firms in the logistics and trade finance sectors, this platform will be able to potentially bring S$600 million worth of man-hour savings each year.

  1. Reduced PIC Cash Payout

The previous 60% cash payout rate will be reduced to 40% for all expenses incurred by the firm on or after August 1, 2016. However, the 400% tax deduction remains unchanged. The PIC scheme will officially expire after YA 2018.

  1. New 3 Year Automation Support Package

To help companies automate, drive productivity and scale up, this package will provide support to SMEs that plan to roll out or scale up their automation packages. If you are not sure what automation is, think computers, systems, machines and robots; in place of people doing the work. There are four components to this scheme in which there will firstly be a grant that will fund your projects up to half its cost, capped at S$1 million. Secondly, qualifying projects will enjoy a new 100% investment allowance for automation equipment. Thirdly, there will be improved access to loans for these qualifying projects where risk sharing from the government might take up to 70%. Lastly, government agencies IE Singapore and Spring Singapore will work together to help businesses access overseas markets.

  1. Enhancement to Revitalisation of Shops Scheme

With increasing competitiveness due to an online global marketplace, SMEs can now tap on the Revitalisation of Shops Loans available for SMEs operating in HDB town centres and neighbourhood centres. This is to better support upgrading projects in which these SMEs can use these funds to renovate their shop spaces. You may also use the funds to support promotional activities and market your business better through the World Wide Web.

  1. SME Working Capital Loan Scheme

With co-sharing 50% of the default risk by the government, this scheme will allow companies to obtain up to S$300,000. Available for a period of 3 years, this will allow SMEs to better manage their cash flow concerns and grow their businesses despite the harsh climate expected in this year.

 8. Institutions of Public Character (IPC) Partnership Scheme

To encourage businesses to give back to the community, this scheme allows businesses to send their employees to volunteer and provide services to IPCs, will receive a 250% tax deduction on incurred costs. Be sure to check if the NPO your firm is volunteering at is an IPC. This will apply for activities from July 1st 2016 to end of 2018 and subjected to a yearly cap of S$250,000 per business and S$50,000 per IPC.

Source A, Source B

If you are an SME owner seeking for the SME Working Capital Loan and Revitalisation of Shops scheme, you may access our company website for more details: www.capitalize.com.sg/sme-working-capital-loan . You may also contact us directly at +65 6717 8681 for assistance.

 

Capitalize is a corporate loans specialist firm that helps Small Medium Enterprises (SMEs) 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.

 

How to Improve Your Chances of Getting a Business Loan
28 Apr

How to Improve Your Chances of Getting a Business Loan

Every business owner has to make decisions to start his success story. The initial step is to be financially ready; and when funds just aren’t enough, a business loan come to the rescue. However, applying for a loan at our present time is not turning out to be so easy for business owners. Aside from regaining the loaned amount, financial houses also consider the interest they will earn and the other potential transactions the client can carry out with them. No matter how challenging loan application processes may appear, don’t let it intimidate you. There are many ways you can play the process to your advantage. Here are some simple steps to win a thumbs up from lenders:

1. State your loan purpose clearly.
It is necessary to prepare the right answers to the bank’s questions as early as you can. The mission is to clearly state why you need the loan and why it is safe for them to give you a loan. It is best to write down the possible questions that they may ask you and try to answer them for yourselves. Basic questions include how much you’ll need, when and how you plan to repay it, etc. Also be ready with the documents you have to submit such as profit and loss statements, balance-sheets, and of course, your latest 6 months bank statements. The key is to let the lenders see you as creditworthy once you show them the debt-to-net-worth of your business without hesitation.

2. Maintain a good credit record
Even paying bills on time matters when you’re trying to maintain a good credit score. Pay off all credit card debts on time in the long run. Good financial habits start from small. Most business owners tend to neglect the fact that loan companies also look into personal credit records no matter how way back in the past they were. It is essential at this point to review your credit score to attend and correct any discrepancy. If all else fails, an honest explanation and document proof to justify your poor bureau records may just save you.

3. Do your research
The chances of getting a premium business loan is not to be sought out by luck, but by choosing the right platforms to assist you. Look for the right loan consultant that not only understands the nature of your industry, the loan you need, but they will also be helpful in giving you some expert advice.

4. Do your part
It is important to keep your bank balances healthy to show how you much effort you take into ensuring that the company has a healthy cash flow . It will also help mentioning that you have collaterals such as invoices from established customers or government projects to back your payments up in any “just-in-case” situations we really aren’t hoping to happen.

For more advice about how to improve your chances of getting a business loan and other finance related inquiries, you can contact a team of dedicated loan specialists at Capitalize to help you get your capital ready to bring your business to greater heights.

Call us at +65 6717 8681 or email us at enquiry@capitalize.com.sg and allow us to help you.

5 Best Ways To Use A Working Capital Loan
09 Mar

5 Best Ways To Use A Working Capital Loan

If you plan to borrow money from a bank anytime soon, you have to know how the words working capital and loan are related to each other. Any business owner should know the importance of having this on hand. A working capital shows the financial health of a business by calculating the current assets of the business minus its current liabilities. This will show if borrowers will be able to pay off their loans in the span of time they are given. If the current assets do not grow overtime, it may mean that the business operations have not been as efficient as it should be. Slow collection of funds is an absolute nightmare for any business that aims to pay off a debt or invest excess money. If you are positive you could do better with your working capital money, you can definitely make use of some of our suggestions below.

Your money for day-to-day operations otherwise known as a working capital can be used to:

  1. Stock up on Inventory

Customers of every business out there expect that companies effectively manage their products and have an ample supply of them. An updated report on product demand helps in determining the stock needed for sales. Your working capital can be used to make sure your business is always delivering whenever there are unexpected demands. That way, all will be good no matter what season your business lives through. It is also good to use the extra cash to take advantage of quality discounts. You never know when the perfect opportunity may come.

  1. Hire a New Employee

An organization’s success is very dependent on the people behind it. There is no other more worthy way to spend your working capital money than on your people. It should be any business owner’s priority to hire effective people who can deliver great results and contribute new ideas to foster business growth. Maybe it’s time to hire a new person to keep all the other employees on top of their own game and not juggle a lot of different things at the same time. Taking note of a posing concern like this in the employment department can actually bring advancement to a business.

  1. Start a Remodel

It’s all about having the best working space. There is something about a remodelled office space that gives employees just the right boost to productivity and beyond. Change can be uplifting. It can also be liberating as you throw old versions of your cubicles away and welcome new furniture. Your working capital loan can be used exactly for this task. Get a modern take on a “workspiration”. It can change your outlook as a business owner and also, your company’s image. It can come off as fresh, forward-thinking and exciting.

  1. For Slow Months

There are a lot of factors that bring a business into its own share of highs and lows. This wave is a part of business balance. You cannot avoid the circumstances wherein business is really slow, but you can surely be prepared for it. Part of the diagnosis is to do some accounting. This should tell you if you need to use some extra loot to keep your inventory intact.

  1. Cover Unexpected Losses

Business loss can easily pull a business owner out of his or her wits. Stay focused on success with a working capital loan on hand. Don’t rely on luck. Even if bad days come, your set back can become a stepping stone because you know your company is bound on resilience.

It’s important for business owners to have sufficient capital to cover yourself for rainy days given that fixed costs are a constant. Many small business owners often wait out and by the time they decide that they need additional working capital, it would be too late by then.

Do contact us at +65 6717 8681 or email us at enquiry@capitalize.com.sg should you be looking at business financing or if you have previously faced difficulties in obtaining additional working capital for your business. Let us help you today, a team of committed corporate loans specialist at your service!

4 FAQs when it comes to obtaining an SME loan
28 Oct

4 FAQs when it comes to obtaining an SME loan

Many businesses often find the lack of capital a critical issue when it comes to expansion plans. If you need to expand your business, you will probably need more money than your business has made in your period of operation. Getting a SME loan remains one of the easiest ways to get the money you need to boost your business. However, securing an SME loan in Singapore has been and still is a major issue among many SMEs. You might find the process daunting and even wonder where to begin.

But, you should not let the worries hinder you from expanding your business. With proper knowledge, you will find the whole process simple and get exactly what you need for your business. There are certain questions one should know when it comes to obtaining a SME loan in Singapore. They include:

1. What criteria do banks and financial institutions look for while applying for a SME loan?

It is essential to understand what the banks and financial institutions are looking for at your company when it comes to securing an SME loan for your business in Singapore. As different banks and financial institutions have different sets of criteria, SME owners are usually buffered as they are not able to figure out the reason(s) when there is a failure to acquire a SME loan. The basic factors include but are not limited to:

  • A legitimate and profitable business
  • Company should not be dormant at any point of time for the latest 6 months and this can be shown from your corporate account transactions
  • Your business and personal assets should show your ability to repay the loan
  • A good personal and business credit history is advantageous
  • Prevent bounced cheques in your corporate account

2. What are the documents required?

Different types of SME loan will require different set of documents for application. However, these are the general documents required from any SME for an SME loan in Singapore:

  • NRIC of the Director(s)
  • Latest 2 years Notice of Assessment (Income Taxes) of the Director(s)
  • Latest 6 months Company Bank Statements
  • Latest 2 years Audited or Management Financial Reports or Statement

3. What is the typical size of a SME loan?

For businesses less than a 20 million turnover can typically qualify for up to $500,000 to a few million in terms of unsecured financing which is still subjected to approval based on an overall financial assessment. Businesses that have a turnover higher than 20 million are categorized as a medium enterprise and are evaluated using a different criteria.

  • One important thing you should be careful with at this point is the amount of money you need. Do not be convinced to take up more than your business needs just because you can. It is better for you to understand the SME loan that is granted to you or else you will be paying interest on the money you do not need.

4. How can the whole process be simplified and made quicker?

With more time vested in the loan application process, more opportunities are lost. In simple terms, time = money. Thus, here are three steps to facilitate your acquisition of capital.

  • Recognize your needs: be sure of what projects you are planning to take up and how much exactly do you require
  • Plan your budget: check and make sure that amount that you want to acquire offers a monthly installment that you are able to afford. Else, explore a longer period or tenure to lower your monthly commitments
  • Execution: seek for the right platforms that offers the most competitive interest and is able to obtain you the quantum you are looking at

Note: if it is your first application, you should consider learning more about SME loan to enhance your understanding prior to the actual discussion with any banks or financial institutions. Being more knowledgeable about the topic will allow you to understand the current limitation(s) of your company and prevent any application(s) that brings negative results.

Likewise, you can turn to loan brokers that can provide you with a one stop solution of the above mentioned and avoid unnecessary hurdles. SME loan brokers can help you minimize the amount of time and hassle spent to understand the application protocols and criteria to approval, finding you the most competitive interest and zoom into directly to where the best approval chances lie based on their experience.

 

Do contact us at +65 6717 8681 or email us at enquiry@capitalize.com.sg should you be looking at business financing or if you have previously faced difficulties in obtaining additional working capital for your business. Let us help you today, a team of committed corporate loans specialist at your service!

6 Reasons Why Singapore SMEs Take Up a Business Loan
06 Oct

6 Reasons Why Singapore SMEs Take Up a Business Loan

It is no secret that the economy is tough especially for small business owners in Singapore having to cope with rising costs, lack of manpower and the shortage of working capital. In today’s continuously fluxing economic climate, the riddle of starting and managing a small business is getting difficult. Nevertheless, many are still thriving as some small medium enterprises have defied the test of the climate change. What is the secret? Below are 6 reasons why SME loan Singapore funding institutions are answering the dreams of many small business owners.

1. Better Management of Cash Flow

Many businesses give credit terms to their customers particularly in the B2B (Business to Business) sector. This gives businesses an edge over their competitors and attract more customers should their credit terms be more attractive. Despite so, an SME owner may face distress when a handful of customers delay their payment longer than expected. With that being said, this will cause a cash flow gap as payment to suppliers must still be made. Thus, many business owners have taken up a SME business loan in order to better manage this cash flow gap and sustain business operations.

2. New Project Funding

Every business seeks growth with each year and aims to have new breakthroughs by securing one or if not a few projects that can bring the company to another level. Typically known as the growth stage, some SMEs may have overestimated their ability to follow through on the entire project and have jeopardized their own cash flow. Thus, business owners would usually plan months ahead prior to deciding on a project and would have made sure that they have sufficient funds before they proceed. A SME business loan has helped many business address this issue and brought about increased earnings from their investment in their new projects.

3. Expansion

Of course, the sole reason of starting a business is to earn profits. To reap in more profits, it is a no brainer that expanding is one of the quickest way to achieve this. With the tough economic times, managing this by oneself can be a monstrous endeavor. Business loans have gained popularity as one of the most invaluable ways to speed up the expansion of a business.

4. Preparedness of Financial Eventualities

One of the greatest benefits a business loan can offer SMEs is the ability to multiply their working capital. A business that wishes to expand might be having enough cash already, but taking up a business loan helps a business maintain its operating cash flow, shielding them from the negative effects of unexpected expenses.

5. Invaluable Relationship

Having a defined and well-oiled relationship with a bank or any other lender is priceless. Once a trusted relationship is in existence between an SME and a lender where the lender has confidence in your abilities to repay a loan, they will be more willing to cash out as your business grows. If there is a chance a business will need a greater amount of loan in the future, it will be much easier being an existing client of the bank or financial institution.

While there might be things to still look out for while taking up a SME loan Singapore funding institutions offer, the salient benefits of a business loans are indisputable. To make things easier when in search of a SME loan, it is advisable to have a trustworthy partner that can provide you with unbiased advice, obtain for you the quantum you require and is able to obtain you the best rates possible in the market for your business. Speak to a corporate loan specialist today.