SME Micro Loan in Singapore
An SME microloan refers to that type of a loan that is extended to small and medium-sized enterprises.
A high percentage of businesses all over the world are in the category of SME, which represent the general finance market. Essentially, SME microloan enjoy lower interest rates in comparison to other types of loans such as personal loans, business loans, or working capital loans.
The primary purpose of this loan is to boost the business growth of those companies whose daily operations have a large volume of transactions but with less cash flow. Other needs include emergency repairs, purchasing of goods, adding stock among others.
The loans can be given up to $100,000 so long as the company’s operations are daily and willing to repay in 4 years. The interest rate, in this case, is dependent on the risks involved and the financial institutions that are running the project.
Before deciding on the moneylender to deal with, one should always be careful if the government licenses it in Singapore. It’s imperative then to search for the moneylender from the list of licensed Singapore Moneylenders on the Ministry of Law website to ascertain whether one is dealing with eligible institutions.
Currently, there are lists of institutions that are licensed moneylenders for Singapore Licensed Moneylenders, and we are among the licensed moneylender giving the best services to our clients. SUCredit is an established and accredited moneylender in Singapore, and the customer is our King.
Even though the moneylenders are licensed, you should always take care and interview them further. Be mindful and ensure that you do not disclose your financial information without clarity. As such be careful if;
· They ask for passwords- You are solely responsible for your financial passwords access.
· Language- Bad moneylenders will use an abusive language to instil fear.
· Signing on a blank contract- never access up to sign a blank contract as this could be used against you during the loan application process
· Retention of your cards-They will ask you to leave your Atm and other critical documents with them, which should not be the case.
At SU Credit, we have the best practices, and none of these crimes exists in the company.
Therefore, it’s essential to take care and ensure that all your personal information are protected for your interests.
Eligibility for an SME microloan
For any enterprise to qualify, then the below conditions must be met.
· The Company needs to be registered and operational in Singapore.
· The locals must own 30% of the Shareholding. This does not necessarily mean a single individual, but in an instance where 3 Singaporean Locals own 10% each, then the company still qualifies to access the loan from the moneylenders.
· The company should also have at least ten employees by the time of making the loan application.
· In most cases, the company ought to be making profits for at least two years by the time they are making an application for the loan.
When all this has been said, SU Credit being licensed moneylender in Singapore will ensure that it accomplishes its mission, which is to offer loans to entrepreneurs who are short of cash.
Our customers have had good experience with us and especially when in need of urgent loans such as repairs, adding the stock, or even opening a new market outside one’s scope of work.
SU Credit has done very well in the past years, and some of the reasons why you should consider taking an SME microloan with SU Credit is;
1. Good Customer relationship- We have well-trained staff who thrive in one condition-KYC basically, means Knowing your Customer. Our team interacts closely with the clients to access the need and ensure that the customers are neither underfunded nor overfunded. Meeting our clients’ needs is our top-notch priority.
2. Informed decisions – Most microlenders are out there to exploit entrepreneurs, which is contrary to SU Credit- We ensure that the loan application process is easy.
In case of any queries, our staffs are always available to advise.
3. Interest rates- Never worry anymore about the interest rates. Our rates are friendly in comparison to the market rates in Singapore, and from research, we offer the best that you will be comfortable playing without default at any single repayment.
4. Customer follows up through visits to ensure that that the financial is accomplished. Giving advice is our mission and will ensure that even as we advance the loan, it will fall into profitable hands today.
Besides, there are other conditions that in general, a borrower should check before making a final decision. These include;
· Interest rates- In Singapore, the rates are capped at 4% regardless of the amount. It’s important to note that only loans that are past due should be charged for the penalty. The ones that have not been repaid but not due are not charged the penalty as this would be a crime by the moneylender.
· Fees chargeable by moneylenders- late payment fee should not go beyond $60.
· A charge that should not be more than 10% of the principal upon the loan disbursement.
Finally, as soon as the disbursement has taken place, the ball is on the entrepreneur’s side, and it’s your role to ensure that;
· The correct amount of principal is what was disbursed- Ensure that the contract tallies with the actual amount less any agreed charges such as insurance or processing fee charges.
· Request for an overview statement on the repayment schedule. This is to ensure that you can as well maintain a calendar on the due dates to avoid default and penalties.
· Receipts should accompany any payment you make as proof of payment. In case of any dispute, then you, as the entrepreneur will be able to support yourself with the documentation.
· Be a faithful entrepreneur by repaying the loan. Failure to pay the loans in good time will affect your credit ratings, which will affect your loan applications in the future.
Clients who have had an experience with us always come for a top-up or a new loan. You could also be part of the success story through our SU Credit loan. To apply, fill up our online application form. You will also find our contacts here and get a 100% satisfaction on all our loan products.