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Loan Company

How Do I Know If A Loan Company Is Licensed?

Seeking financial assistance from moneylenders in Singapore may be a catastrophe if correct decisions are not made. Consider first if the moneylenders are licensed or not licensed before any loan application.

Licensed moneylenders are registered by the government and strictly follow policies set by the government. Their interests are pretty standard and straightforward since all operations are monitored.

Make an astute decision to visit a bank or any other suitable moneylenders in Singapore like SU Credit Company to acquire any coinage. If you go for lenders not accredited to offer loans, you might face worries like high-interest rates or con you to pay some amounts to secure credits.

Go through all moneylenders and check if they are licensed to evade any difficulties that may arise; compare all lenders and shortlist the few companies that suit you, and you feel offer the best contract.

Benefits of Accompanying Licensed Money Lenders

Subscribing to licensed moneylenders may be linked with endless benefits.

1.     Rational Interest Rates

Licensed moneylenders tend to provide reasonable interest rates. This is unlike the loan sharks who provide unreasonable interest rates. You even find that they aren’t straightforward with what they are offering.

Thereby, try your best to consult a licensed moneylender who will assure you of flexible repayment terms too.

2: No Hidden Charges

All moneylenders in the market aim to generate more earnings from their funds. Therefore, you must be keener and more selective when making choices of moneylenders.

Unlicensed lenders may make imaginary boasts of offering loans to persons at a very low-interest rate as compared to others, while they are not.

These companies don’t have any fees that might be hidden, as other unlicensed companies tend to have an excuse to hold clients for more extended periods. These companies only demand interests in money they lend a client, no further cash inclusivity.

By selecting licensed moneylenders in Singapore, you will have no stress of any hidden charges. Such companies have a good rank in the country and are not ready to tint their name and deteriorate customer relations.

3: Their Terms And Conditions Are Pliable

Licensed moneylenders have not set rules or limitations for their clients who need short-term credits; you can utilize finances for any purpose you want. Licensed moneylenders have straightforward terms that won’t leave you puzzled about what is needed.

When your financial stability deteriorates, they never harass you after borrowing or whenever their cash puts you into a monetary crisis. Uprightness, openness, and answerability are the big reasons they remain at the pinnacle of clients’ choices when seeking loans.

4: Unpretentious And More Convenient

Loans from these authorized companies are readily available, and one can access them through online websites and platforms. Do a detailed analysis of the moneylender you intend to cave in your documents.

The big reason behind this is that unlicensed moneylenders may decide to use your records for malicious means. Therefore, do thorough research before approaching a moneylender.

How Do You Check If Money Lenders Are Licensed?

1: Check If That Company’s Name Is On Minlawa’s Register

A good way to determine if a company is authorized to lend money is to check the list of licensed moneylenders in Singapore. Every month, they avail an updated list of all moneylenders allowed to loan individuals.

This information provided by the register will inform those with interest in securing loans to differentiate the licensed and unlicensed moneylenders.

2: Be Acute On Adverts Made By Money Lending Companies

If companies keep on calling and tending to offer loans via mobile phones, the possibility of them being unlicensed moneylenders in Singapore is very high or a licensed company going against rules and regulations.

Following  MinLaw’s website rules, they have shortlisted a few channels where registered lenders display their legal information about loans. They are business directories, licensed moneylender websites, and adverts placed on the company’s doors, gates, and windows.

 Before making any decision about seeking a loan depending on advertisements, seek full details from the company.

3: Investigate If The Company Has A Physical Address

Most licensed moneylenders tend to have a physical address that you can go to when in need of a loan. Thereby, try and check their website to see if they have highlighted their physical address.

Loan approval without visiting companies’ premises may sound like a scam. Also, acquiring loans by meeting up in unknown places is not a legit deal. Make a definite check on the solemn list of licensed moneylenders.

4: Licensed Money Lenders Need Face To Face Affirmation

It has become a trend for all moneylenders to offer loan applications online due to technology modernization. However, licensed moneylenders still need physical assurance to process your loan.

Physical appearance on the premises of a licensed moneylender is necessary before progressing to loan disbursement.

What A Licensed Money Lender Cannot Do When Collecting Debts.

1.      Cause Harm

When licensed moneylenders are collecting debts, they are not given the mandate to cause any harm to you.

In case it happens, they are severely punished. In Singapore, if you make an individual unconscious or cause wounds to the body, the punishment is two years imprisonment.

2.     Wreck Your Property

Licensed moneylenders don’t have a right to alter your property, not even putting posters on your door. In Singapore, this is a severe offense, they should not even dare to embarrass you. In case they do, they are heavily fined.

3.     Tracking Down A Debtor

This includes approaching your family and close friends, coming to events you are attending, visiting areas you visit frequently, and following you. This is illegal and unlawful. A good money lending company won’t do that.

Conclusion

Trying to secure loans from companies is a tragedy and frightening to most individuals. Going through detailed information about loans can be massive. Do good research on licensed moneylenders on government websites. Never deal with unsanctioned companies since they have very unlogical fees and illegal charges.

business loan

How Do I Qualify For A Business Loan In Singapore?

As a business person, there are always ups and downs in your business activities. To be successful, you must take advantage of the market and get an upper hand. This may be in the form of purchasing more products at lower unit costs.

However, at times, your cash flow may be limited and may lead to missing out on a business opportunity.  What can you do to ensure you make the best of business opportunities? Apply for a Business loan.

In Singapore and all over the world, business loans are an essential stepping stone one can use to expand their business. Some of the most successful businesses in the world owe their growth to business loans they got at the right time of their business cycle.

In this article, we are going to see how one can qualify and apply for a business loan in Singapore.

What are Business Loans?

A Business loan is a financial credit facility offered to a legally registered business that allows it to start, expand, or increase its current stock.  Business loans also come in handy if the business, which has been performing well, has a slight difference in its performance and may need help to pay its debtors and suppliers to ensure continuity of its operations. To cater to the various stages of the business,

Financial institutions may have different categories depending on the stage of the Business. Some business loans are government-assisted financing schemes. There are startup business loans, which are tailor-made for businesses that are just starting up.

We also have SME Working Capital Loans, which are available for already existing businesses. There are also Temporary Bridging loans, which assist Small and Medium Enterprises access financing where there are shortfalls in their cash flows. One can access business loans that have repayment periods of up to 5 years.

What is needed to apply for a Business Loan in Singapore?

As mentioned above, a Business Loan is a credit facility offered to a legally registered business entity. The loan is granted in the name of the business and not an individual’s name.

Therefore, to qualify for a business loan, some key requirements one must prove are:

  1. The business is a legally registered entity under Singaporean Laws and provides proof of ownership.
  2. The owners are required to submit financial records of the business.
  3. A business plan is required especially for Startup Business Financing.
  4. Goods and services tax (GST) Records for the business.

With all this in place, you can start shopping around for the best business loans that are suitable for your business need.

Factors that may affect your qualification for Business Loans

1.     Business Track Record.

For already existing businesses, the business financial statement is used to evaluate the business’s suitability for a business loan. The revenues and income statements assist to see how solid the business is and can be used to project cash flow.

Therefore, ensuring that your business has sufficient cash flows, will be a plus while applying for a business loan. The cash flow will indicate the business’s ability to repay the loan granted.

For startups, a well-defined business plan is crucial in the evaluation of the business opportunity to be financed and may affect the loan limits provided. Lenders will evaluate the feasibility of the business you are venturing into.

2.     Ownership of the Business.

For government-assisted financing schemes, they require a minimum of at least 30% Singaporean Citizen Ownership. If your business does not meet the requirements for Government-Assisted Financing, do not worry as there are licensed moneylenders and financial institutions that have business loan packages suitable for you.

3.     Business Record Keeping

Businesses are advised to ensure that they observe detailed record-keeping for their business activities. This means keeping documents such as bank statements and accounts in order, as well as the supplier and customer records.

The more detailed and transparent the records of the business are, the easier it is for financial institutions and licensed moneylenders to evaluate the business’s suitability for a business loan.

4.     Business Credit Score.

One of the go-to evaluation criteria used by lenders is to rely on credit scores. It is always a good business practice to ensure that you are always in good standing with the business creditors and lenders.

Before applying for a business loan, ensure you pay all your bills in time and are paying already existing loans in a timely manner. A good business credit score goes a long way in ensuring a successful Business loan application

5.     Ensure all vital Application Documents are available.

As mentioned, business loans are offered to legally register businesses, hence one has to ensure that all the vital documentation in regard to the business operations is available during the loan application. These documents are used to appraise the business for business loans.

6.     Apply for Loan Limits the Business is able to repay.

To ensure you qualify easily for a business loan in Singapore, ensure that you do a proper assessment of the loan amount the business can comfortably repay. Before receiving the loan, it is advisable to design your budget to enable the planning of loan repayments and to evaluate how much loan capital you need.

The uncertainties of business in the previous years have made business operations harder to predict.

It is therefore prudent to ensure, when applying, apply for realistic loan limits. Remember, for successful future business loan applications to grow your business, you must maintain a good credit score through timely repayments of your loan obligations.

7.     Period of Operation of the Business.

The time period of operation for a business before applying for a business loan is a factor to consider. Loan applications from businesses registered a day before the loan application may have a difficult time qualifying for a business loan.

Apart from the above-mentioned criteria, each lender may have additional requirements, hence it is important to find out the specific requirements needed by the lender in advance.

What next if you meet the qualification criteria?

If you meet the qualifications for a business loan, you can use SU Credit online application form to apply for a business loan. SU Credit offers flexible terms and conditions, favorable and specific to each client.

SU Credit will reach out to you once an application is received with the way forward. Give your business the financial stepping stone it requires with SU Credit Pte Ltd.

Low-Interest

Low-Interest Personal Loans In Singapore

With the changing economic climate and increasing rates of inflation, cash flow for personal and business purposes is becoming more and more strained. What happens when you have a need for a boost in your cash flow for personal uses? That is where a personal loan comes in.

What Are Personal Loans In Singapore?

A personal loan is one that an individual takes from a lender, such as a bank or licensed moneylender, and pays the loan amount plus interest in installments over a pre-determined time period. In Singapore, personal loans do not need collateral, hence are accessible to a majority of the people. However, each financial institution has its own metrics to determine who qualifies for a personal loan

Personal loans are applicable for a number of uses, for example, debt consolidation, home renovations, and settling medical or educational bills among others. One of the advantages of a personal loan is that it does not require fixed collateral, and hence it is unsecured. There are certain tips you can follow when you want to access a personal loan

This means that it is accessible to the normal working Singaporean who does not have many fixed assets. However, one has to have a good credit history to qualify for a personal loan at a low interest. Apart from good credit history, one must have a minimum income that is maintained to access a personal loan.

SU Credit is one of the most reputable companies that offer loans such as personal loans, business loans, and unsecured loans.

What Are Some Things You Should Consider Before Applying For A Low-Interest Personal Loan?

1.     Your Credit Score.

For banking institutions, the credit score is stored by the Credit Bureau of Singapore. For licensed moneylenders, the credit score is stored under Money Lender Credit Bureau. Before applying for a loan, ensure you have your credit score with you.

Your credit score will determine how much credit you can access and how much interest you will pay for applicable loans. The higher your credit score, the higher your chances of qualifying for a low-interest rate personal loan.

2.     Plan your Finances.

Before applying for a personal loan, ensure that you have checked your cash flow and your needs, to ensure that once you apply for a personal loan, you will be able to meet the Loan Contract Agreement. This can be done by checking your income and spending needs, to ensure that if offered a personal loan, you will have enough income to service your loan.

Remember, if you take a personal loan from a financial institution or licensed moneylender, you are obligated to meet the repayment amounts as agreed.

Failure to which, you will be blacklisted, and this affects your credit score negatively. Additionally, this affects your future loan applications due to a lower credit score.

3.     Shop Around For the Best Loan Terms.

Singapore has numerous financial lending institutions and licensed moneylenders in operation. Before deciding on where to take a low-interest personal loan, ensure you have done your background research on the available offers.

We at SU Credit have been in the licensed money lending industry for some time and have developed a reputation for being dependable and customer-centric. Our products are tailor-made to meet the specialized needs of each customer.

How Interest Is Calculated For Personal Loans.

In Singapore, licensed moneylenders can charge a maximum interest rate of 4% per month. For banking institutions, this rate is different. In the eventuality, that a client is unable to make a repayment for their personal loan, the maximum late repayment interest a licensed moneylender can charge is 4% for each month the loan is repaid late.

The late repayment rate is only charged on the amount that is repaid late, and not on the whole loan amount.

Other Charges Applicable While Applying For A Personal Loan.

When applying for a personal loan from a financial institution, some other application fees are applicable. As of 1st October 2015, for Licensed Money Lender, a limit was placed on the additional charges. These charges are limited such that:

  • For each month of late repayment, the fees cannot exceed $60.
  • No more than 10% of the loan amount (principal) is charged as loan granting fees.
  • In the recovery of a defaulted loan, a Licensed Money Lender can only claim the legal costs ordered by the court.

Procedure Of Applying For Personal Loans In Singapore.

In this digital age, there are numerous ways to apply for Low-Interest Personal Loans. The first and oldest method is to physically apply by visiting financial institutions’ offices or branches.

Most banks and licensed moneylenders in Singapore have offices and branches that customers can visit to get the services needed.

The minimum requirements to apply for a Personal loan in Singapore are:

  • Must be between 21 and 65 years old.
  • Must be a Singaporean Citizen.
  • Be employed with an annual minimum salary of S$10,000 for most Licensed Money Lenders and an annual minimum salary of $30,000 for most banks.

For documentation, most lenders will require you to provide:

  • Proof of identity in terms of Singaporean Identification card or Employment permit for foreigners.
  • Proof of Address, which will validate the area you reside in. This may be in the form of utility bills with your name etc.
  • Proof of Income may be in the form of the latest tax notice assessments, payslips, or salary deposits to your savings accounts.

In this digital age, technology has evolved to allow for the online application of Low-Interest Personal loans. At SU Credit, we make it easy for you, by simply clicking on the Loan Application Page here, and you get started on your journey. Once your online application has been submitted, you will be contacted by our customer service team to guide you on the way forward with regard to your application.

SU Credit For Low-Interest Personal Loans In Singapore.

With the current economic uncertainties, saving money has become harder. With inflation and rising costs of living, cash flows are being affected globally. However, as a Singaporean, we have the right solution for you.

At SU Credit, we offer unsecured personal loans that meet your needs and offer you much-needed flexibility. With flexible interest rates determined by each customer’s personalized qualifications, there is something for everyone. Choose SU Credit as your reliable choice for online unsecured personal loans.

Company Loan

How To Get A Company Loan

Company loans help to boost businesses and startups. We hear a lot of stories about how entrepreneurs started their businesses, but the truth is they probably got some form of help in the beginning.

So, taking out a small business loan can help you start or grow your business, but it is important to know what you are getting into before you go ahead and borrow money. The following are guidelines on how to get a company loan here on SUCredit in Singapore.

1.     Prepare For The Application Process.

So, first off, you are going to want to prepare yourself before you go and submit an application. First, decide how much you need plus be clear on what you need the loan for.

You may use a loan calculator to know the amount of loan that can cater to your needs. Many lenders including SUCredit will mostly ask you why you would like to borrow from them.

There is a range of company loans and all have qualifications. Sorting out what type of company loan you need is very important as it may ease up the array of questions.

2.     Check The Repayment Plans

Consider your repayment plans. Be realistic about how much your business can afford in terms of repayments, and think about any external factors that could potentially put a wrench in your plans.

Moreover, you should also consider discussing your plans with a financial advisor, which will give you some more personalized recommendations and help you just learn more overall.

Also, try and evaluate whether the repayment plans favor you at all. Do you feel comfortable with the duration given? How well can you structure the repayments to ensure that each month there is money allocated for that specific intention?

3.     Check Whether You Qualify

Determine if you qualify for a company loan. Before you meet the required qualifications and get approved, you must check your eligibility. We are stating details like company legitimacy, company debt repayment history, references, quality of service, proof of business viability, and demonstrations of stable cash flows among others.

A company is a separate legal entity and has legal rights and responsibilities and is treated as a separate entity from its owners or shareholders. Also, try and check your needs first before settling for a specific loan to prevent going back for different loans before you pay the first one.

4.     Submit The Documents.

With the simplicity of the SU Credit online platform website, it is very simple to submit your details for a quote. Once you check-in and access it, you will click on the loan application and be directed to a page for the process initiation.

Step 1. A page will appear on your screen that will require you to fill in your details which include: Full name (as per NRIC), contact number, and email.

Step 2: Click on next and a loan details page will pop up and will require you to fill in your monthly income of the company. It will also require you to input the loan amount you want to borrow and the purpose of the loan, which in this case you will choose and click on the business loan.

Step 3: After moving forward and clicking on the next process, the form will inquire from you whether you would want to write an additional message, for example, your preferred appointment date and time, or rather any formal suggestion.

Step 4: The next page that will be the final is one asking for your consent. Meaning that you agree with SU Credit Pte Ltd’s online privacy policy.

Signs That Will Indicate That It Is Time For A Company Loan

1.     Cash Flow

Not having enough cash flow could be a sign that you are ready for a loan. So for example, let’s say you are in a position where you’re constantly having to pay for new inventory upfront, but maybe your wholesale partners only pay you out at the end of every month.

There could be a chunk of time when you don’t have enough money available to pay for the things you need to have to run your business, like inventory. This is a legitimate example of when you might start looking for a loan.

2.     Equipment

You might need to invest in some equipment and a loan might make sense if you need equipment that is either going to start, maintain growth, or grow your operations.

However, the key here is that this investment should be showing a return in the long run. That will validate your need for a loan.

3.     Advertising

One of your biggest costs as an e-commerce business is hands down going to be advertising. So, whether that means that you are shelling out money on online ads, or maybe you have hired an agency to manage the ads for you.

A company loan can help you spend that money to be able to make that money back. Moreover, when you know how you will do it, then a loan will come in handy.

4.     Emergency

We cannot foresee the future, so sometimes even our savings may not cover our mishaps. Let’s say your equipment fails, a loan can help you get out of a sticky situation. Getting a loan would make sense in this type of scenario so that you can continue operating as usual.

Conclusion

Only take up a company loan when you have some needs. Otherwise, you may take up a loan and be unable to pay it on time. Also, consider checking the loan’s interest rate before agreeing to take it up. Do you think your company’s profit will be able to pay up the loan? Also, remember that there are other operational costs that you will need to cater to.

No Income

How To Get A Loan With No Income?

The COVID-19 pandemic tampered with the global economy. Many businesses had to shut down, while others had to restructure their working process by cutting costs and expenses. This led to people being laid off from work, while others had to get lower salaries.

In an attempt to barely survive, personal loans became a solace to many. However, many financial loan institutions had to make sure that a borrower was credible enough to repay the loan. Despite having no income, there are several alternative ways to get a loan with no income.

A Guide to Financial Freedom

People take up loans with many needs in mind. Thus, financial institutions have come up with different types of loans depending on one’s preference. Some of the best money lending institutions are SU Credit which offers a wide range of loans at favorable interest tenures ranging from one to seven years.

The kind of loans offered includes personal loans, business loans, and unsecured loans. The effective interest rate (EIR) on their loans ranges from 7.0 percent per annum to 18.72 percent per annum. Your loan’s EIR is determined by the yearly interest rate (or bank-advertised nominal interest rate) and the loan’s term.

Loans are offered to help either persons or businesses in times of financial crisis. When taking up a loan, a borrower must have a sense of financial freedom in mind. This includes: making life goals that lead to financial freedom, making a well-planned budget to avoid spending money carelessly, paying off all credit to increase future loan credibility, saving, and investing.

It is also important to continuously learn how to grow financially and manage finances in case of any sudden emergencies.

This is something most institutions ought to educate their borrowers to make sure the finances offered are well managed, thus increasing the possibility of repayment on time. For people with no income, financial institutions have come up with new ways of guaranteeing repayment.

Qualifications to secure a loan

Although personal loan criteria differ for the different moneylenders, there are a few factors that all financial institutions check when evaluating applications, such as credit score and income. When analyzing loan applications, financial organizations seek five basic conditions:

1.     Credit Score

The Credit Bureau Singapore is in charge of determining a person’s credit score in Singapore. The bureau ensures that the credit score it calculates is based on an individual’s credit information gathered during transactions and interactions with financial institutions in Credit Bureau Singapore’s membership network.

However, the bureau’s credit score is far from the only metric or instrument utilized in Singapore to determine creditworthiness. Financial institutions in Singapore typically utilize it in conjunction with other rating systems that may include information about a person’s demographics.

2.     Income

Your income is not only important to the lender’s qualification process, but it’s also important to the ability to repay your loan. To ensure that you can meet your repayment requirements, most lenders need proof of income.

It’s preferable to avoid taking on further debt if you don’t have a job or another source of income and can’t afford a personal loan.

3.     Debt-to-income Ratio

In this, moneylenders check whether the income they get can be able to pay up a loan. A credible moneylender cannot give you more money than the kind that you can pay comfortably.

Therefore, you need to check your income to validate the kind of loan that you can get. Also, if you have several loans from different money lending companies, you can consider debt consolidation to just have one huge debt that will be easy to monitor.

4.     Collateral

There are two types of loans; secured and unsecured loans. The secured loans require you to provide collateral that will be used as safety in case you don’t pay up a loan on time.

However, for unsecured loans, you won’t need to provide anything as safety. Therefore, even without income, you can still get a loan using valuable collateral.

5.     Getting A Loan Through A Car

A person may acquire a loan and secure repayment against a guarantee of their car or a third party’s car, as long as the institution gets a copy of the car’s logbook. With a Guarantor Loan, you enlist the help of someone you know who has an excellent credit score and is above the age of

That person, known as a “Guarantor,” agrees to guarantee any loan or car finance repayments. If you miss a payment, they are legally obligated to make those payments on your behalf.

6.     Instant Digital Loans

Traditionally, bank loans were used for funding, but it’s not always easy to acquire one; or perhaps you need something more flexible or for a shorter period. You can get SME loans in a variety of forms and sizes in these circumstances, so you may select the ideal one for your current business needs.

In Singapore, institutions like SU Credit offer great instant loans based on one’s needs, whether business loans or personal loans.

Conclusion.

Acquiring a loan despite having no income is not as easy based on credit score assurances on the part of the lending institution. However, with the emerging digital trends, people can now have two or more guarantors as well as place other assets as guarantors to get a loan.

Even without an income, it is still possible to get a loan. However, you need to show that you can pay off the loan with no problem. In Singapore, getting your preferred loan type is also predominant on the kind of credit score. If you pay off loans on time, you are assured that your credit score is fair. Also, try and maintain the relationship with the moneylending company.

low income

Best Instant Low-Income Loan Options

When you earn so little and you are left with no other option but to top up your salary with a credit facility to cover the deficit, it’s hard to find a low-income loan in Singapore that will meet your financial needs without making your financial status worse.

And while you may find a lender willing to approve your loan with a low income, this comes with a cost. Therefore, it is important to pay attention to interest rates and payment terms.

What is a Low Income Loan?

Low income does not necessarily mean small pay, it depends on factors beyond your pay such as family size and where you live.

The lending criteria include proof of income and categorize the income from high to low depending on the clientele.

If you fall in the low-income category, then a low-income loan in Singapore is ideal for you.

In a nutshell, the low-income loan is a loan facility advanced to people with low income as categorized by the lending institutions.

Low-income Loan Options

When you have a low income and you are searching for a loan facility, you may think that your options are limited and the ones that are available are very expensive.

This is not the case, there are several low-income loans options that you can explore. Here are some of them:

Secured Personal Loan

As the name suggests, this loan is secured against an asset such as a vehicle or land, or any other property, where you lounge property ownership documents such as the logbook or title with the lender and it is jointly registered.

The security is meant to safeguard the interest of the lender in the event of default. Your property can be repossessed by the lender if you fail to honor the terms of the loan agreement and can be sold to clear your loan balances.

These loans are less risky to the lender and are easier to qualify and have high approval rates.

Unsecured Personal Loan

This type of loan does not require any collateral making it riskier for the lender hence stringent terms.

Due to the risky nature of the loan, it attracts high-interest rates, strict terms, and low approval rates.

Unlike in secured loans, a credit score is necessary here, to prove your creditworthiness. Approval rates depend on your credit rating.

Small Unsecured Personal Loan

This is an unsecured loan with a maximum limit. The limit is usually set by the lending institution, but in most cases, the limit is S$3,000

Payday Alternative Loan

This is a loan that you get to top up to your salary and payable on the next payday. The interest is usually high as it is an unsecured loan and the approval rates are dependent on your salary.

Finding a low-income loan in Singapore isn’t a tall order as there are a thousand lenders looking for that business. However, it may come with a high-interest rate and other costs.

business loans

Guides to business loans in Singapore

If you are a small and medium-sized enterprise in (SME) owner in Singapore, you are likely to seek financial assistance at one point in time.

Business loan sg can either be used for capital investment, to boost working capital, pay rent, or other purchases.

This guide enlightens SMEs on the available options for boosting their businesses through business loans in Singapore.

Types of Business Loan Available in Singapore

Government Assisted Business Loan Scheme

This is a working capital loan and temporary bridging loan program. This scheme was introduced in 2020 during the height of the COVID-19 pandemic as a way for the government to support enterprises in Singapore that were already feeling the hit of the pandemic.

The loans are administered by Enterprise Singapore (ESG) and their participating financial institution (PFIs)

They are very attractive to SMEs as they include a government risk share of up to 90%. They offer 3 loan facilities: SME working capital, trade loan, and a temporary bridging loan program.

 Unsecured Business Term Loan

Unsecured business term loans are not secured by physical collateral such as property or equipment, but by company directors’ personal guarantees

These loans are very popular among SMEs due to their flexibility. They can be used to finance working capital for daily operations such as the purchase of inventory and payroll or to finance business expansion plans such as leasing a new retail outlet.

Merchant Advance

Merchant advance (MCA) is a financing product that is only available to retail or F&B businesses that use credit card terminals.

Qualification criteria are based on 6 months of credit card transactions. If you request huge amounts, then you’ll be required to provide your financials and guarantors.

Invoice Financing

Invoice financing in Singapore refers to a credit facility that uses invoices as collateral. The amount to advance is based on the strength of the SMEs customers.

Government or Multinational corporations (MNC) customers are usually the most preferred customers as their payments are always guaranteed.

The SMEs receive business loan sg by providing the invoices that are awaiting payment. Then, the lending institutions will process the loan and use the invoice as collateral of which they’ll recover their money plus interest once the invoice amount is settled mostly in a month’s time.

Business Overdraft

An unsecured overdraft is viewed as an alternative to a business tern loan and is recommended for SMEs who require short-term financing for working capital.

Unlike the term loan, Overdraft provides the SME with a line of credit instead of a lumpsum amount. Interest is only charged on the amount used. The overdraft facility allows the SME to have multiple withdrawals of any amount up to the credit limit.

Business First Loan

This is an unsecured business loan sg that caters to young start-up registered and has been operating in Singapore for 6 months to 2 years

It is one of the few loans available in Singapore for business start-ups

With the above information in mind, the next step is to look for a reputable lender and apply for a loan.

loan

Disadvantages of Taking a Loan from “Loan Shark”

Loan sharks are illegal money lenders operating in Singapore and usually target poor and desperate borrowers.

As compared to the recommended licensed moneylender, they pretend to be the best lenders that you can ever get.

They attempt to lure you into borrowing with them by being friendly and offering very attractive terms when the bank has turned you off due to a poor credit rating.

However, the money that they give you comes with a very high price, not to mention the risk. You might think it won’t be bad if you are applying for a small loan that you’ll clear within the shortest time period but that’s not the case. Here is why

Never Ending Interest Rates

Borrows get attracted to loan sharks because they find the loan application process very simple as they don’t have to make trips to the bank or money lender’s offices since everything is handled online.

However, that convenience comes with a cost, they add extra charges not agreed upon at the point of the loan application. That is not enough, they add daily interest upon default which makes a small loan build up to huge amounts leaving you into a financial crisis.

The sad thing is that, instead of empowering these poor and desperate borrowers, they burry them deep into the pit of debt.

Hidden Charges

Unlike banks and other recommended licensed money lenders loan sharks do not necessarily have clear loan terms and conditions. So you are never sure what your terms are and therefore, they can subject you to some crazy interest and other illegal charges.

In most cases, illegal money lenders will give you a blank paper for a contract to sign, of which they add some information that you are not aware of later after they’ve processed the loan. Whatever is put there in becomes binding as you’ll have signed the document though you signed when it was blank.

Personal Possessions Taken as Security

Although illegal, loan sharks will ask for your passport, bank cards, and other important personal documents as a security deposit. This is to guarantee that you won’t run away before settling your debt

Your personal identification documents are yours by law and they should be in your possession at any given time. Your personal information should be protected to avoid access to illegal identity duplication or identity theft.

Trading your personal identification documents for a loan is not worth any amount of money as it can easily be abused and cost you more than the benefit derived.

No Option of Full Settlement

Unlike the recommended licensed moneylender, loan sharks rarely allow the borrower to settle the loan in full. This is to keep you paying the high-interest rate that is ultimately their profit. In the event that they allow you to pay in full, the load full interest that you could have paid if you waited for the full term.

Pressure to Clear One Loan with Another

Loan sharks will come with all sorts of solutions in the name of helping you fix your financial problems. If they find you struggling with loan repayments, they’ll advise you to borrow from another loan shark so as to clear their loan fully to avoid future penalties.

Don’t be fooled, this will just get you into a larger debt with even higher interest rates and you’ll be left to pay that loan forever.

Violence and Harassment

When you are unable to meet your monthly installment, they’ll issue threats and subject you to a lot of harassment. They even involve family members and friends in their coercion to force you to clear the debt.

In a nutshell, the best way to deal with loan sharks is not to deal with them at all.

Best Money Lender

Tips to Choosing the Best Money Lender in Bugis

The best money lender in Bugis is a great source for getting loans in Singapore as they provide various financial services from payday loans to term loans.

There are multiple licensed moneylenders to choose from in Singapore offering both online and offline services. However, there aren’t any set standards for identifying the best money lender in the country but there are ways in which, you the borrower can find the best-suited moneylender for your specific financial needs.

Here are a few ways that you can explore to find the best Bugis money lender

Credibility

The first and the most crucial thing to identify if the moneylender is credible is to verify whether indeed they are licensed and running a legal business. No matter which money lender you pick, just ensure they are licensed to operate in Singapore by the Ministry of Law.

Here is how you can identify if the lender is licensed.

  • Ask for the proof of license issued by the Government
  • The ministry of law provides a list of Bugis money lender on their website. Therefore you can browse through the list to find out whether the company you are dealing with is licensed.

Experience

Experience is paramount in every sector. An experienced lender will definitely offer the best services and informed advice.

In the lending sector, different lenders specialize in specific lines of credit. Although you might find them offering all loan services, there is always that line of credit that a given lender specializes in.

For instance, you may find that a given lender is known of offering the best mortgage facilities while another one does best on asset financing

It is always advisable to look for a money lender specialized in the loan you intend to apply for as they are deemed to offer the best loan terms plus professional advice.

To gauge experience, you can do research on the company’s history. Generally, the more year of operation, the better the services.

You can also try to get a neutral view from their past clients. Clients are always genuine and will always leave a very genuine remark on customer feedback. Such feedback can help you gauge the credibility of the company.

Interest Rates

Interest rate is inescapable in any type of loan. However, different moneylender Bugis offer different interest rates for the different or same loan facility. Therefore, it is up to you to conduct your research to identify the lender offering the most competitive interest rate in the market.

Application and Approval

After compiling a list of the potential lenders, you need to find out more about the application and approval process

It is important to know the turnaround time of the lender, especially where you need immediate financing to sort out emergencies.

Flexible Loan Repayment

Another important thing to consider when choosing the best money lender Bugis is flexibility.

A flexible repayment plan will not leave you in a financial crisis after paying the monthly installment.

If you follow the tips above in identifying the best money lender Bugis, you can be sure to get the most reliable one with the best terms.

secured loan

Difference between a secured loan and an unsecured loan

You may occasionally find yourself in need of immediate cash, but your savings are insufficient. You may have considered taking out a bank loan, but what if you can’t get through the red tape? The paperwork, the wait, and the uncertainty of not knowing if your application has been granted can be challenging. However, don’t be concerned. You might consider getting a secured loan in Singapore as a potential option.

You shall have to determine whether you want a secured or unsecured loan.

What, though, is the distinction between the two? And, given your existing circumstances, which path should you take?

What Is The Difference Between Secured And Unsecured Personal Loans In Singapore?

Let’s look at the distinctions between taking a secured loan in Singapore and unsecured loans now that we’ve covered a few scenarios.

  1. Secured Loans in Singapore

Secured loans are those that require the borrower to put up some form of collateral as a condition of borrowing. Secured loans include car and housing loans, for example. Pawning your belongings at a pawn shop is the same as taking out a secured loan in Singapore.

The item, which serves as collateral for the loan, can often be anything of worth your own. Property, vehicles such as automobiles or motorcycles, other high-value assets such as valuable jewelry, or even a fixed deposit may be included. If you default on your debt, the lender has the authority to seize and sell your property to recoup their losses.

It’s possible that even after the lender has taken the collateral, it won’t be enough to meet your loan obligation. This is referred to as a shortfall, and it commonly occurs when property or items deteriorate in value over time.

It’s crucial to remember that secured loans may contain restrictions on how you can use the funds. If you plan to spend the money to buy a car, for example, you may be obligated to use the entire sum.

Even after the lender has taken the collateral, it’s possible that it won’t be enough to cover your loan obligations. This is known as a shortfall, and it occurs when the value of property or items depreciates over time.

It’s crucial to remember that secured loans in Singapore may come with restrictions on how you can use the funds. If you want to buy a car, for example, you could feel obligated to use the entire amount.

  • Unsecured Loans

When you take out an unsecured loan, unlike secured loans, you don’t have to provide collateral.

Because the lender is taking on more risk, unsecured loans have higher interest rates than secured loans. Failure to repay the loan on time will result in a low credit score, which can lead to serious problems in the future. This includes a lower chance of getting a loan in the future and the inability to get a credit card. It may make it more difficult to find a job, especially in the banking and finance sectors.

There are usually no limitations on how you can utilize an unsecured loan, whether it’s to pay for medical bills or a vacation. Personal loans and payday loans are examples of unsecured loans, both of which can be used for any reason.

Renovation loans are an exception to this rule. While you don’t need to put up any collateral to get a renovation loan, there are some limitations on what you may do with the money. You can only utilize a renovation loan to pay for renovations like electrical work, painting, and structural adjustments. You won’t be able to use it to buy new furnishings with it.

Benefits of obtaining a secured loan in Singapore

  1. Secured loans frequently have lower interest rates: When borrowing money from a lender, the interest rate should be examined. The interest rate for a secured loan in Singapore is lower. It enables you to take advantage of a reduced interest rate, resulting in cheaper monthly repayments.
  • Higher loan amounts are available:

If you need a substantial sum of money, a secured loan in Singapore is the best option. It gives you the ability to borrow a large sum of money. You will, however, need to supply the lender with collateral as security.

  • You can use your assets as collateral:

Different lenders allow you to utilize various assets as collateral for a secured loan. Property, vehicles, cash, and high-value assets are examples of these assets. Some lenders may allow you to utilize your valuable jewels and artwork as collateral.

Benefits of taking a secured loan in Singapore from Su Credit Pte. Ltd.

Su Credit Pte. Ltd can provide you with a secured loan in Singapore. We are a licensed moneylender in Singapore that offers a variety of lending options. Many firms in Singapore have benefited from our assistance in overcoming their financial difficulties. You can apply for a secured loan in Singapore through our online money lending platform. The platform is built to allow for a simple and quick application. We will contact you as soon as possible once you submit your application. Please use our online application to apply for a secured loan in Singapore today.

Su Credit, 175 Bencoolen Street #01-36 Burlington Square, Singapore, 189649 Tel: +65 6636 5644