A company loan is a type specialized for businesses that need some financing to cater to their needs. This can either be in operational expenses or expansion expenses.
At times, the sales in your company may not be working well, or you need some extra cash for the sake of the growth of the company. This is where the company loan comes in to help.
The company loan can help you to expand your business operations and let them flourish. Also, as you strive to get a company loan, consider using the money for the right reason, minimize your costs, establish other new revenue sources, be transparent, be upfront, and have a good financial plan for the loan that you will get.
Su Credit is an ideal money lending company where you can get the required company loan for the prosperity of your business.
Tips When Applying For A Company Loan
1. Organize All the Documents
When you want to apply for a company loan, ensure that you have all the documents in place. This can include bank statements, financial accounts, tax clearance documents, and other ones. Also, consider your timeline; by when do you need the money? This will help you organize and apply for the loan on time.
Also, you need to discuss with the company’s board of governance to know after how long you will be able to pay back the loan. This will make it easier to apply for a loan that you can comfortably pay in the designated time.
Also, the time duration will determine the kind of company loan that you can get. Thereby, get a loan that will accommodate everything that you will need for the growth of the company. This is to prevent you from having to go back to the moneylender to get more loans.
While providing this information the lender will know your needs well. You can have the cover letter, collateral, detailed business plan, loan amount & usage, credit history, management team, marketing, and financial statements.
2. Maintain a Good Credit
Good credit will make it easier for you to get a loan. Even when getting a personal loan, the moneylender always checks your credit score to see whether you are in a position to pay it back.
The higher your credit score; the better and more secure your loan will be. Always strive to take up loans that you can pay up comfortably. When you delay paying up the loans, it messes with your credit score hugely.
When you go for a loan the company often takes your credit history to see whether they can trust you. Also, don’t have the habit of taking up many loans from different companies as it can mess with your credit score.
3. Go Through the Different Loan Types
Even though you are settled for the company loan, try and check the different options to see whether you can find something better. Check if there are SME loans, business loans, business capital loans, or suitable company loans.
To be on the safe side, always check the interest rates for the different loans. This will make it easier to know the amount that you will pay back after a certain period and whether you will be able to meet the targets.
Also, when making the application, you can talk with the agent or loan officer to see what’s suitable for you.
4. Determine the Money You Need
Another crucial thing is to determine the amount of money that you need to finance the specific operational cost or project. You need to apply for a loan that will accommodate all your needs. Therefore, ensure you use your financial plan to know whether the loan money will fit your budget.
You can consider getting a loan that is more than your budget. Also, you need to have a consistent cash flow to make the moneylender believe that you can pay up the loan on time.
Also, ensure you organize all those documents to make it easier for the loaning company to give you the money. In some instances, it will be okay to provide your business plan to get their trust.
5. Check the Eligibility and Apply
You also need to check the eligibility for getting the specific loan and ensure you meet it. Therefore, be careful not to leave any loophole that will make it hard to get the loan. Check the eligibility criteria to be on the safe side.
Also, consider knowing about the lending process and getting the loan from the right credible, licensed moneylender. Take your time before you get any loan because you will need to pay it back and the decisions you make will have an impact.
Also, try and communicate honestly and openly about the issue. Be disciplined in paying the company loan on time. Also, try not to over-commit yourself financially because it can cause a big strain.
Once you qualify to get the loan, ensure you use it for the right purpose and not for bad reasons since you will still need it for the company. This is important if you want your company to prosper.
In many cases, you may find that companies tend to get loans and use them for the wrong decisions. However, when you are disciplined you will use it for the right reasons. Therefore, always prepare your documents upfront, maintain a good credit score, go through the different loan types, determine the money you need, and be careful with the application process.
Also, when you need money never hesitate to take up a loan that will lead to your prosperity. If your company remains stagnant, you are assured that you won’t get enough profit in the long run.
Have you ever heard of unsecured loans? Well, there are both secured and unsecured loans that have different terms. For the unsecured types of loans, you won’t require any kind of collateral to get a loan. However, for secured loans, you will need to have collateral to ensure that you get your loan on time.
In most cases, you find that the secured loan amount tends to be large as compared to the unsecured loans mostly consist of fast cash loans. Some of the most popular secured loans include personal loans, balance transfers, credit card loans, and credit lines.
Unsecured loans won’t require you to give your car or home or any other valuable as collateral in case you are unable to pay the loan on time. One credible loaning company is like SuCredit Moneylending Company. They have great unsecured loans.
What Is An Unsecured Loan?
Well, in short, it is the kind of loan that doesn’t require any kind of collateral, so you can get a loan. However, when getting an unsecured loan, the moneylender will have to look at your credit score to see how well you pay loans. If you delay in paying loans, they might think twice before finding you a loan.
What the Moneylender Will Consider Before Providing An Unsecured Loan
1. Income level
Before any licensed moneylender provides an unsecured loan, they will first check your income level to determine whether you are capable of paying up the loan.
They will check the income you get and check against the amount of loan that you want to get. If they consider it, then you will surely get your loan. Therefore, providing a bank statement will be crucial here.
2. Credit history
Your credit history normally shows how you borrow and pay up loans. Therefore, whenever you are taking up loans, be assured that they are being tracked. Therefore, try and pay up the loans on time to prevent getting disappointment when you want to get an unsecured loan, and it is an emergency.
We often don’t know when emergencies might come and so when we block the only possibilities to get loans – it can be bad. Also, always check your credit score to see how you are faring.
3. Existing debt
Moreover, before you get an unsecured loan, be assured that the money lending company will check whether you have any existing debt before they give you a loan. Your credit history will play a major role in determining this.
They will get to know whether you differ in loan repayments or pay them on time. Luckily when you get the loans, they won’t take up any of the assets even if you delay in payment.
4. Amount you need
Before you get an unsecured loan, the money lending company will also evaluate your application to see the amount of money that you need. Because this is an unsecured loan, you are assured of getting small to moderate loans only.
On the other hand, if you need a bigger loan, you can consider getting a secured loan to cater to bigger deals.
Characteristics of Unsecured Loans
Unsecured loans are multipurpose and can be used for different reasons based on the kind of needs that you have. Therefore, once you get the unsecured loan, you can use it for your own needs without having to be followed by the moneylender on how you are using the money.
You can also use it to consolidate other small debts on other financial institutions to just have one that you can deal with. However, remember to pay it on time.
2. Unsecured loans are flexible
The unsecured loans are flexible, and you won’t have to worry about whether the money lending company will keep following up on how you use the money. You can get them easily, have low interest, and have a fast approval rate.
3. Type of unsecured loans
a) Personal loans
One of the most common unsecured loans is personal loans. It is a general-purpose loan that doesn’t have too much strictness on its use. This is one of the lowest cost options for buying things.
Personal loans are unsecured, general purpose, and require regular payments over a duration. It is essential if you want to buy something but can’t afford it immediately or raise cash for a purchase deposit.
b) Line of credit
It is also known as the cash line. In this, the bank offers several funds that you can borrow. It is like standby cash. It doesn’t have any fixed repayment term.
The maximum amount that you can borrow is known as your credit limit. Luckily, you won’t be charged any interest until you utilize the line of credit.
c) Credit card installment plan
This is a bit different from personal loans. You take up a loan and make a series of installment payments over a fixed period. It is a bit different from credit card loans.
This works best when you are purchasing an item and get to pay in installments. Thereby you get a loan to pay up the item. It is ideal for credit card holders who don’t want to incur interest charges.
d) Bank transfer
This is the kind of loan that allows borrowers to consolidate all debts from other accounts or credit cards to one credit line or single credit card. It offers very low-interest charges.
It is ideal if you are finding it hard to pay up minimum monthly repayments. Therefore, you decide to just have one large loan.
e) Debt consolidation loan
Another one is the debt consolidation loan which allows you to consolidate all your unsecured loan balances from different financial institutions into one to make it easier to pay.
It is a great way to finish up debts in different institutions. This will also reduce the interest rates that you would have incurred in the different loaning financial institutions
An unsecured loan tends to be a bit different from a secured kind of loan. Therefore, you can consider getting an unsecured loan to cater to your immediate needs.
Also, do thorough research to ensure you get a loan from a credible money lending company to prevent falling victim to loan sharks. Get a reliable loan from SU Credit Company today!
As you plan to build your business, it’s almost impossible you won’t apply for a loan. As hopeful as you can be that you will get financing, one thing that instantly crushes your dream is – loan rejection. This is something that over 80% of businesses in Singapore experience, and this could be you some time.
What if you can be among the 20% whose loan applications go through? Relieving, right? You need to be on the right track by following the tips we give you when applying for a company loan in Singapore!
Want a Company Loan in Singapore? Check Out the Following Insights for Easy Loan Approval!
To get the loan amount you need for your business, follow the following steps:
1. Maintain an Outstanding Credit Rating
One thing your lender will surely look at before approving your loan is your credit score. It’s pretty straightforward; if you have an incredible credit score, the loan application process is smooth! Once you apply for the loan, receiving the amount is just a matter of time.
A good credit standing means that you should pay all your bills, avoid bankruptcy, and not apply for multiple loans at once. These are some of the factors that Singapore banks will check before granting you a loan. If everything is in check, you will secure your company loan.
When the score is terrible, you will have to wait longer before the funds are released. You might as well be unable to fund your firm as it commences operations.
2. Ensure the Timing is Right
You cannot apply for a company loan at any given point in time. There is an ideal time where you will solicit for it and get feedback; otherwise, nothing will go through.
So when exactly can you get a company loan in Singapore?
It’s when your business is doing well. Usually, the first few months of a company starting up are the hardest. You are trying to do what you can to stabilize it. Over 20% of startups fail within the first year of operation for various reasons. Therefore, getting a loan within this time can be challenging.
Do not ask for a loan when your company is less than 12 months old. It’s too early to do this since your lender requires a track record and proof that your business has stable revenues to grant the loan.
So wait until your business is doing well to get support. Consequently, secure the funds early even when you don’t use them at the moment. You can use them when the tough time comes.
3. Have Current and Upcoming Projects Primed
What does your business prospectus look like? Do you have one? Most businesses ignore this essential aspect forgetting that it’s what most banks will look at before giving them loans.
You should prove to the lenders that you have viable projects and have other upcoming projects in the pipeline. Also, these outlines show that your company is generating income and is doing well. The projects are a sign that your company can stand independently in the coming days.
No one will lend money to a corporation that’s fumbling. Grantors want to work with a business that they are sure will repay the debt within the stipulated time.
However, you can beat this by proving an effective business plan to those lending you money—a powerful layout signal to financial institutions that your business is legit.
Therefore, provide evidence that what your company is doing will make enough to repay the amount. Similarly, explain to the banks how you will utilize their funds for quick application approval.
4. Get the Right Loan for the Right Reasons
Before contacting your money lender, get the reasons for your company loan right. Most shylocks for company loans in Singapore want to know what you want and why you want the loan. There are multiple selections available for Singapore companies, so you need to check what works best for you at the time.
Your primary aim should be to get the best loan you will not have trouble with while paying. Also, it should be able to cater to what your company requires. In fact, you will definitely get what you want from your banker.
They will stipulate the maximum amount you can get, the applicable interest rates, collateral, repayment terms, and any other helpful information. Scrutinize your options and settle for the one that suits you best. Also, do not forget to get loans with favorable repayment terms.
5. Pledge a Collateral
Another tip for soliciting company loans in Singapore is getting an indemnity. The first thing that comes to the bank question when lending a certain amount is, will you be able to repay it? If not, how will they recover the loan?
The granters want to ensure that their funds are safe even after you cannot pay them. This pushes them to ask for some “security” and reassurance that you will repay the loan they dish out.
While giving the collateral, most banks will want actual proof of the item. So, they will go through your balance sheet and the statement of cash flows. They determine your fund’s consistency and comprehend the company’s financial strength.
Also, the surety document highlights your personal and business assets. It will show the number of properties, cash, and receivables used as security.
By ascertaining such items, they will know whether the collateral you put in place will be enough to cover the risk in case of loan default. If not, can it be enough for half the risk? If satisfied, they will disburse the money. Otherwise, the requisition won’t happen.
Tip: When skeptical about getting a loan, consult someone with a greater understanding of getting company loans in Singapore. You save time since they will quickly show you the direction to follow and advise you for better chances to secure credit.
Obtaining a company loan in Singapore is not complicated, provided you follow the proper steps. If you want to fund your business, look for a fuss-free company that will listen to your needs and fulfills your desires. Talk to SU Credit for a simple and quick loan application process.
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.
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.
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.
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.
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.
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.
Borrowing has always been a common practice among many businesses. However, it is not a simple task to do for most business owners. Borrowing from an illegal money lender can be risky since you put your company at risk if the loan amount is not paid back on time.
Many people do not know that there are illegal money lenders out there. Most of us only associate loan sharks with movies and television shows. However, these people really exist, and they give loans to people who need funds immediately and then charge them an astronomical amount of interest for it. When you borrow from an illegal money lender, he will not be interested in your ability to pay the loan back. He will only want to know the value of your property and how much security you can offer for the loan. Once he has possession of your crucial information, he can then sell your property for cash if you cannot make payments on time.
What is an illegal money lender?
Some credit card companies do not require a credit check, but they need sufficient income to fulfill the minimum payment. However, some lenders will lend money to you regardless of your income.
Illegal money lenders are people or businesses that lend cash without having any formal agreement with the borrower. Usually, the loans are small in amount, from $100 to $1000. They offer loans to people with poor credit scores at an extremely high-interest rate. This interest rate is technically more than the one permitted by law and generally doesn’t provide any sort of protection for the borrower. Such a lender can be a scammer or even a fraudster who might not intend to give the loan.
The money lenders are generally unlicensed, so they do not have any obligation towards their borrowers. The borrower has no way of legal recourse if he cannot return the money on time or decides to break the contract. These illegal money lenders tend to target people who want urgent cash.
What are the dangers of borrowing from an illegal money lender in Singapore?
It is prohibited to operate as a money lender or a loan shark. When re-payments get missed, loan sharks may use intimidation and threats of violence against you or your family to help them solve their financial issues. It can be a horrible experience with alarming consequences for one’s health and well-being.
Borrowing from any loan shark can seem like a good idea at first, but it can quickly escalate into a debt of tens of thousands of pounds with no clear indication of when the money will get returned. When borrowers cannot repay their loans, they may get driven to commit crimes, and debt to legal firms may grow out of control, jeopardizing tenancies and other vital aspects of daily living.
How to identify illegal money lenders in Singapore?
The first step is to comprehend the various methods used by illicit money lenders. The second step is to realize that there are four systematic ways to spot illegal money lenders.
The first strategy entails looking for websites that seem to provide loans but demand high-interest rates. These are the most apparent illicit money lenders, and it’s easy to spot one if you come across one.
The second way is looking for people who offer no paperwork or formality for loans. It is a specific technique to spot illegal money lenders since they don’t ask for any paperwork or evidence of income. Usually, they offer a cash loan, charge exorbitant interest, can threaten you, or demand your bank card, benefit card, passport, watch, or other valuables as collateral.
They primarily run their business from their house as Moneylenders with a license can only work out of their offices. These lenders are also prohibited from advertising their services anywhere other than owned media and government-approved venues.
Moneylenders with a license are only allowed to operate for a maximum of eight hours per day, five days per week, whereas illegal moneylenders use outside of office hours.
Alternative ways to fund your business without taking a loan from an illegal moneylender
There are multiple methods to fund your business without taking a loan from an illegal moneylender. Some alternative methods to support your business without taking a loan from illicit moneylenders include
-Taking a secured loan from a legal moneylender
-Contacting angel investors
-Raising funds through crowdfunding sites
Entrust SU Credit for your loan needs in the most secure way!
The risk of borrowing from a money lender is very high. Every year, hundreds of people become victims of scams and illegal activities. If you are seeking to borrow money in Singapore, we highly recommend that you use the services of SU Credit Pte Ltd. We retain an extensive network of reliable partners worldwide and can arrange funds for your needs. We will present several different solutions that best meet your needs when you apply with us.
Our company has been in the lending business for more than ten years and has helped thousands of people get the support they need to get back on their feet. We do this by offering our clients flexible loans with reasonable interest rates. Whether you need a personal loan or a business loan, we have got you covered with our services. All loans are processed quickly and easily online, so you do not even have to leave your home. We want to help your life be better! For more information on how we can assist, please feel free to contact us today!