Business Loan Myths in Singapore Busted

Planning on starting up a new business? Or once again taking an attempt to restart the shutdown business? Well, any business, be it a new one or a renewed one requires a certain amount of capital to be invested first. It is next to impossible to supply that much of capital from your personally invested money. All you can do is ask for a loan from the Money Lender Singapore, one of the leading money lending and registered financing company. The money lending firms offer a good amount of all types of loan at a low rate of interest. They aim to provide their customers with the right amount of service as required and serve them as fast as possible so that the clients can meet their demands as and when a crisis occurs.

Types of Loans Available

Credit Excel Capital presents before you a platter of a variety of loans. All types of loans are for definite purposes and can be of great help if availed properly. Here are the various types of loans:

  • Payday loans

A payday loan is a liquid cash that you get from payday lenders devoid of security so that the loan can address to you as your best friend regarding the emergency. In other words, instead of asking for monetary help from your dearest friend, you can reach out to privatized lending companies. People who avail this loan are self-employed individuals or people in can need of emergency financial need. Point to remember, anyone below the age of 21 cannot apply for this loan.

  • Personal loans

As the name suggests, personal loans are mainly for personal use and can be taken by qualifying people. Qualifying people are those who have a steady stream of income, from employment to business activities and must be citizens of Singapore or foreigners with the authority of living and working in Singapore. By law, you should be above the age of 21. The best thing about personal loans is that you can avail it for any and every financial purpose you require. For paying a debt, purchasing an asset, setting up a business or satisfying your daily needs, this kind of loan is apt. It is used to short-term financial needs.

  • Business loans

Expanding a business, thriving on it and enjoying the fruits of your business can be enjoyable but what about setting it? Of course, it is not an easy task. Along with a lot of time and effort, a firsthand investment is a must. Money lenders in Singapore offer loans for specific business purposes. Also, the business can possess varied repayment methods according to the income of the business company. Today, people are fortunate to get flexible loans, both in secured and unsecured forms for short term and medium term tenures.

  • Foreign loans

Foreigners in urgent need of loans can apply for loans here. In availing a foreign loan, there are few rules if not restricted or demanding. Loans provided are affordable in comparison to other money lending firms. Documents required while applying for loans are tenancy agreements, passports, work permits, pay slips, bank statements, employment letter and appointment letter. You can get access to the money easily as well as repay back the loan flexibly, that is, unlike banks, there are less hard and fast rules.

What Are the Business Loans Myths Busted in Singapore?

To arrange for business or to clear pending purchase payables, a loan is required. When speaking of loans, you prefer to take the assistance of banks. What if the bank turns its face down? What next? You think your business is finished. But there are innumerable people oblivious to the fact that not only banks but also private firms have come up to provide you loans. Since people are ignorant of the fact that privately licensed money lending firms have developed, they tend to cling to some misconceptions that prevent them from asking for loans from these privatized companies. Legally affirmed private lenders provide working capital loan and often without much hassle. You can get funds approved within few weeks in most cases. Yet, some of the general myths are as follows:

  • Business loan approval requires a perfect credit score. Less credit score may pose a problem on the part of the customers in applying for loans in banks and government based grants. But there is a great range of Singapore based money lenders who permit loans on less credit score, perhaps on much less than what should be the actual range. If you are capable of meeting the requirements asked for the sanctioning the loan, the loan will be granted at once. The basic requirements are annual revenue, profits, business size, type of industry, the flow of cash and business age.
  • Lenders prefer large company loans to SME loans. Although legally credited money lenders make handsome profits from long-term loans acquired by big companies, yet they are generous enough to deal with all kinds of establishments from small to large. Do not pay much heed to such myths. Instead, pay attention to your flow of cash and capability to repay back so that you have an idea about many loans you are borrowing.
  • All private lenders are scammers. Many people will advise you to ask for loans from banks. Even though your company faces trouble in the dearth of money, still there will be misinformed ones to guide you and take you to the door of banks. Do not hear much of them. Get hold of some trusted and licensed money lenders in Singapore like the Credit Excel Capital. They are highly professional and follow disciplines on the line of Ministry of Law. Your credit also is on time and on reasonable terms and conditions.
  • Focus on interest rates. It is obvious that people make mistakes while applying for loans. They look after the rate of interests to be paid while repaying back the loan. While choosing lower rates of interest, also pay attention to different aspects as well. Other aspects include loan amount, monthly installments, tenure, processing fees, and penalties on delaying or missed payments, hidden charges, prepayment changes and loan extension plans.
  • Unsecured loans have rigid payment structures. Traditional established banks give you a certain time limit within which you are bound to repay back the loan as per fixed EMI rates, irrespective of how your company is running. If you are an owner of a small-scale industry or produce seasonal products, it is obvious that at some point in time your business may go through few ups and downs. Such conditions pose a serious threat to repay back bank loans. Whereas, in case of private lending, repayment is flexible. Try to select short-term loans for immediate and temporary cash requirements.
  • Difficult to get funding for new businesses. Many small-scale businesses suffer for this cause. People running small firms lose the opportunity of changing few business-related ideas to practice and expanding their business only because of listening to the myth that it will be a difficult task to avail loans for small businesses. But there are some benevolent moneylenders in Singapore that lend their helping hand to fund for marketing purpose. The range begins with short-term loans to start up loans for individuals who are self-employed, salaried and contract persons.