credit company

How do I know if a credit company is legitimate?

If you find yourself worried about the legitimacy of a credit company, it’s advisable to take your time to do due diligence to know if it’s legitimate before you involve them. Fraud has risen in almost every business, where you will find scammers or other corny business people.

Most clients lose a lot of money through these scammers who operate in the name of moneylenders. In the money lending sector, you need to be extra careful to know how to determine a legit credit company. The money sharks or unlicensed moneylenders can frustrate you. 

In Singapore, we have numerous unlicensed moneylenders who act legit and are not registered by the government, and their reason for that they are still new to appear on the government database. This kind of response is a trap in which they can convince you to engage with them and fraud you.

There are various ways which you can use to know whether a credit company is legitimate or not:

1.     They Follow The Right Application Process.

 A real licensed moneylender will always require you to provide documents. The licensed moneylenders always want to know your employment status. This helps them determine whether you can pay off a loan or not.

Unlicensed moneylenders normally have a short procedure to follow. The scammers can deceive you by telling you they don’t require your documents such as an ID or residence proof when applying for the loans. However, there is always a hidden agenda or hidden fees they aren’t mentioning.

Many individuals can fall for it since the unlicensed moneylenders know what awaits them in the future. Ultimately, they will get more profits from you.

2.     Advertise Using the Right Channels.

Many unlicensed moneylenders use platforms such as WhatsApp, Facebook, flyers, SMS, and calls to communicate with you. This should be a red flag for you to spot an illegitimate credit company. You need to ask yourself how they got your number or your Facebook account name and privately text or call you.

Legitimate moneylenders don’t text or call you unless you reached out for their services and responded. Some individuals are caught in this trap due to desperation for money and later on regret their actions. In due time, you can get harassed by the loan shark personnel if you fail to pay. Additionally, you can risk getting your property auctioned.

Legitimate moneylenders advertise through mass media, social media, or traditional ways. They don’t contact you through calls, text, or direct mail since it’s against their regulations.

  1. The Lenders Check Your Documents Well Before Giving  A Loan.

Fraudulent moneylenders guarantee every applicant loans even without checking their credit history and score. They use such words like

  • Everyone is approved.
  • No problem if you have bad or good credit.
  • They care less about your history, and you deserve a loan. 

If you see the above statements, run away from those frauds, since they are enticing individuals with a high risk of credit history to join them. As a result, they will default and charge you with high interest and fees.

A legit credit company will look at your credit history and score first before they decide to either give you a loan or not. The thing to note always is to do your due diligence to work with moneylenders who are interested to know your credit score, before knowing your loan status eligibility.

4.     Their Paperwork Is A Bit Complex.

The unlicensed credit company makes the application process easy. They trap people using their fake policies. They have sweet tongues to entice you into getting the loans.

Their contracts are drafted in a such way they miss key elements such as; repayment terms, clients’ rights, legal obligations, and legal measures when you default their loans. To be safe don’t rush to sign the contract, take your time to read and understand the contract and check if the key elements are drafted in it.

5.     The Lender Has a Physical Address.

Licensed moneylenders normally have their physical addresses properly illustrated on their websites.   Most loan sharks don’t normally have a physical address. They will even convince you that it is important for you to go to their physical address.

Due to your money urgency, you will give in and take up a loan. Most legit moneylenders don’t rush you into getting a loan, they allow you to take your time. 

6.     They Give You Freedom to Make your Decision.

Loan sharks know how to play with your mind. This will make you make wrong decisions while in a confused state. They even go deep to ask you about your bank pin and other personal details that they don’t deserve to know. Always be wise when dealing with a loan fraud company.

You can give out some really sensitive data that they can use against you when you default payment. Thereby, always be careful when taking up a loan. Always trust companies that seem transparent in their transactions. Good money lending companies give you the freedom to make your decisions.

Conclusion

If you happen to need a credit loan from a company, always be careful about where you are going to borrow a loan, not all moneylenders are legit. Whenever you accept a loan, always take your time to go through the loan contract and policies.

 If otherwise, you note the interest rate is higher in the contract I advise you to decline the loan immediately, since you are engaging an illegal credit company. The above explanations show you how to know whether a credit company is legal or illegal.

An example of a legal money lender in Singapore, it’s like SU Credit Company. If you notice any illegal credit companies, report them to the authority for moneylenders in Singapore. 

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.

company loan

What is a company loan in Singapore?

The current pandemic has caused a huge impact on businesses. Nearly 6 out of 10 Singaporean businesses will need at least 2 years to recover from the damage even if they speed up digitization, seek new revenue sources, or innovate in products and services. Having said that, small businesses or startups may have to suffer from the financial crisis owing to uncertain economic and political conditions.

In this case, a company loan in Singapore can provide some relief to small businesses or startups that are confronting cash flow issues. With some financing aid, businesses can establish themselves in the challenging market and sustain in the post-pandemic.

Let’s see what type of company loans you can think of in Singapore

What are the Types of Company Loan Singapore?

Usually, the loan structures available for businesses are of two types viz. The term loan and line of credit. Here, a term loan refers to a loan that disburses a lump sum of funds to a company with a fixed replacement schedule for a certain period. On the other hand, as the name suggests, a line of credit is similar to a pool of funds that a company can draw with interest charged only on the amount of money utilized.

Now that you know the basic structure of the loan. Let’s see what types of loans you can avail of.

  • Invoice Financing

Invoice financing refers to the borrowing of money again at the amounts due from customers. In this way, it helps businesses to turn their invoices into cash rather than waiting for customers to pay. This type of loan is specifically important for those who face issues with customers who take a long time to pay. A lot of funding societies provide invoice financing credit lines for businesses to maintain their cash flow.

  • Business Term Loan

These are the traditional loans that are provided by banks. A business term loan is generally a lump sum capital that borrowers have to pay in a pre-specified repayment period. It also has a fixed or adjustable principal and interest rate.

  • Unsecured Business Term Loan

An unsecured business term loan is the one that is issued and supported by the creditworthiness as well as the business ability of the borrower to repay the loan. However, creditworthiness alone is not considered for sanctioning the loan. The repayment ability along with past business history also plays a huge influence on the loan amount. This loan can be disbursed without any use of property or any other asset as collateral. Also, the loan terms are generally dependent on the credit score of the borrower.

  • Merchant Cash Advance

As the name gives you an idea, a merchant cash advance is a loan that is received by merchants or companies from banks or alternative lenders. The alternative lenders conduct a survey and analyse the creditworthiness of a company by looking at the business credit score, multiple data points including the money received by merchants through online transactions to accurately assess the business capability to make repayments. Usually, businesses with lower credit scores tend to use cash advances for financing activities.

In a merchant cash advance, the lender grants an advance capital and in turn buys a section of the daily credit of a firm and debit card sales. The company has to pay back the advance along with a percent of daily card sales. So, when you have a slow business, you pay back less and vice versa.

  • Venture Debt Financing

A venture debt financing or private equity is a type of financial aid provided to small businesses or startups that hold potential for long-term growth. It is usually received from investors with a high net worth or investment banks. However, it is important to note here that the funds granted may not be only in the form of money. These can also be a provision to other resources including managerial expertise and so forth.

  • Business Line of Credit

A business line of credit is a loan that gives businesses access to a certain amount of money that can be drawn at any time based on requirements. In this, you get two types of line of credit as fixed and revolving credit. The fixed type provides you a stipulated amount of money while the money in the revolving type can be reset after the business pays the full balance amount. This is similar to credit cards.

What are the Types of Lenders?

  • Traditional Banks

The traditional banks as we all know are commercial or corporate banks that provide day-to-day banking services to businesses including services like credit services, cash management, commercial real estate services, and so forth.

  • Equity Financing Firms

Private equity is a type of investment class that is composed of capital by investors that directly invest in private companies or engage in buyouts of public companies. Such retail or institutional investors offer capital for private equity which can further be used to fund activities that improve new technology or working capital and so forth.

  • Peer-to-peer Lenders

Peer-to-peer lending provides funds to businesses from individual investors instead of financial institutions or any middleman. These include certain funding societies that offer financial aid with or without collateral through a simple application process and fast approval.

  • Angel Investors

Angel investor is also known as seed investor or private investor. These investors are generally high-net-worth individuals that are capable of providing financial backup to startups and businesses in exchange for ownership equity in the firm. These investors can provide a lump sum investment amount to get the business started or an injection of funds to keep the company going depending on your financial needs.

  • Government Support

Looking at the economic decline from COVID-19, the Singapore Government has set up credit support for businesses.

Conclusion

Owing to the financial crisis post-COVID-19, a lot of businesses are struggling to keep up with the ever-changing economic situation. In this scenario, a company loan Singapore can help companies set up their business as well as keep them running smoothly.

So, if you are thinking of starting your business or revamp your existing one, our team at SUCredit can help you in availing of personal loans. We offer top-grade service and hassle-free loans to our clients. Our packages are tailored for our clients to ensure that their needs are met. Contact us at +65 6636 5644 or reach us here.

company loan Singapore

5 tips on applying for a business loan

A business loan is essential for you when you want to expand your business. Applying and approving a business loan is not as difficult as one might think. Your business loan application should show and prove that you have a sound business plan and the capacity to repay the loan. When it comes to getting company loan Singapore applications approved, some tips are vital for your success. Below are 5 tips that will help you have success in your business loan application.

  1. Your business plan must be obvious and not ambiguous.

 A perfect business plan is key to a successful company loan Singapore application. You must ensure that you draft your business plan in such a way as to convince the lenders not to confuse them. Your business plan must state your project’s goals, marketing tactics, revenue generation plan and other essential details. Lenders will definitely evaluate your company business plan’s feasibility based on your revenue generation plan.

  1. A good credit score is essential.

Another vital tip to help you get your company loan Singapore approved is your ability to maintain a good credit score. The higher your credit score, the higher your chances of getting your company loan Singapore approved. You will need to avoid charge-offs, foreclosures on previous loans, late repayment and bankruptcies to enhance and maintain a good credit score.

  1. Don’t miss out on any vital documents.

You should be careful not to submit incomplete documents if you don’t want your company loan Singapore application rejected. Make sure you go through your application to ensure that all the necessary documents required are included. It would help if you did not even miss out on a single document to increase your chances of loan approval. Some of these include a completed loan application form, GST, ID proof, bank statements, photograph, and proof of ownership of a business.

  1. Ensure sufficient cash flow

Your ability to demonstrate adequate cash flow projections and sources is a big plus for getting your company loan Singapore application approved. Sufficient cash flow is an indication that you will be able to repay the loan with no issue.

  1. Only apply for a realistic loan amount.

You must choose a realistic loan amount for your company loan Singapore to be approved with ease. You should carefully evaluate how much is needed and apply for the same amount.

Our terms and conditions for applying for a company loan in Singapore are flexible and created to make you have a successful business. You can use our online application form to apply today. All you need do is to upload your necessary documents, fill and submit our online company loan Singapore application form. We will reach you once we receive your application. While waiting, you can apply today.

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