What Is A Legal Money Lender?

Written by james tan. Posted in legal money lender

A legal money lender is registered with a regulatory agency and must be licensed to give out loans and services. What this means is that they are bound to follow the already set rules and regulations by the government, among other factors. 

A look into what is the difference between licensed moneylenders and banks. Typically, a bank is, maybe, making a term loan against fixed assets of a company in a revolving line of credit for operations and other types of credit facilities to acquire companies.

Moneylenders serve that population that gets beyond the risk profile of a bank. Banking actively deals with the acceptance of deposits as lending money, whereas moneylenders may not include acceptance of deposits.

There are other types of loans that are more complicated and certainly riskier for a client that wants to grow more quickly than the risk profile of the bank warrants. Legal moneylenders like SUCredit Company highly come in here as they offer an array of different products regarding loans where they run a much more disciplined quick process to help the client find a new source of capital.

Products That Legal Money Lenders Offer

1.     Asset Based Lending

Asset-based lending (ABL) is given to businesses that then provide an asset as collateral for the loan.  In most cases, the cash is used to boost the business. They can decide to use it for some business operational costs or expansion.

It has become a popular choice for companies and individuals that don’t have credit ratings, track records or patience.

2.     Rescue Finance

Typically, it is a provision of a loan to a company, business, or individual in difficulty. Moreover, it provides solutions to fundamentally sound businesses with unstable balance sheets due to cyclical pressures.

There are quite a few advantages of rescue financing. Sales and profits are mostly increased once the loan has been granted and minimizes potential bad debt. Since it is a loan to boost up your business, capital return is improved unlike before.

3.     Bridge Finance

This is a short-term loan used to provide quick financing to a company or individual until permanent financing is arranged.

Bridge finance is a stop-gap solution that is most convenient for individuals looking to buy a second home before selling their first.

The rate of interest on bridge finance is relatively higher than that of term loans. However, the approval time is way shorter than other loans.

How Exactly Do Loans Work?

All loans work the same way whether from moneylenders or a bank and when you pay them back, they earn a profit through interest rates. Licensed moneylenders are only allowed to charge interest annually depending on whether security, i.e. giving up something valuable you have as a “deposit” for the loan, is given or not.

Banks, however, have different interest rates and a deposit or a down payment, depending on what the money is used for, how much you borrow and how you want to pay it back. Usually through a tenure (paying a fixed amount every month for a set period).

Things To Consider When Choosing Legitimate Money Lenders

1.     Lender’s Reputation And Credibility

The answer to this question is the most important. Does the lender do what they say they will do? Get referrals from other borrowers, if need be, to check the lender’s trustworthiness. It is very important to know the credibility of the moneylender and take your time and read other borrowers’ reviews and testimonials until you have the right image.

 However, never rely on a single source of information, as the internet is full of scammers, and it may end up being a trap. All this is to help you ascertain a credible moneylender.

2.     Loan Specialty/Volume

Why do you need the money? Is it for a small business or an emergency? These are some questions to ask yourself. Answering these will assist you in knowing the right moneylender to approach.

You might wonder why it is important, as all lenders have the same goal and objective. The main contrast is in the payment process and interest rates. A lender designed to offer personal loans is different from the one that lends for business-related assistance.

3.     Interest Rates

All moneylenders have got their preferred method or system of payment, and so are their interest rates. Most of these factors can easily be accessed from their website, advertisements, or through contacting them on various platforms.

Based on this, finding the one with low-interest rates is easier compared to the traditional ways of finding information on moneylenders. Moreover, most lenders often offer loans with sensible interest rates.

Making a comparison of different lenders helps or rather guides you to counter-check all factors of the moneylender, mostly when it is your first time applying.

4.     Terms Of Engagement

Generally, what this means is that you should consider reading the lender’s policies, terms and conditions as they may contain information that is not stated on the website or so. These may include features like repayment schedules, repercussions of payment failure, or interest rates as earlier stated.

What would be the case if you default or miss a loan repayment within a few days? The answers should be in the terms and conditions of the moneylender. Your credit score should always be key when it comes to loans and keeping them positive.

Conclusion

When you approach a legal moneylender, you will feel safe. This is because all their terms are transparent, and you won’t have any fear that they can con you in the process. Thereby, always try to check how legitimate the moneylenders are. You can get a loan, then they start pressurizing you immediately. Always be careful and choose a legitimate moneylender like SU Credit.

How Do I Know If A Loan Company Is Licensed?

Written by james tan. Posted in legal money lender

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.

Disadvantages of Taking a Loan from “Loan Shark”

Written by james tan. Posted in legal money lender, tips and guides

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.

4 Reasons To Engage A Legal Money Lender In Singapore

Written by james tan. Posted in secured loan Singapore

Ever heard of scammers who persuade innocent people into getting loans of a large amount of money? Well, most of these scammers end up threatening people’s lives or even hurting their families. These scammers are mostly known as loan sharks. Most of these loan sharks forge licenses and run their illegal businesses which may also involve money laundering.

When planning to get a loan, make sure you check out people’s reviews on the various moneylending agencies to avoid future misunderstandings. An example of a legal money lender in Singapore is SuCredit Pte Ltd. Alternatively, you can also access a loan from a bank.

4 reasons to engage a legal money lender in Singapore

Getting a loan from a moneylender has its advantage in various ways. They include:

1.     Low-interest rate

When it comes to borrowing money from a moneylender, they tend to vary their interest rates. They are mostly lower compared to those in banks.  The lowering of these rates makes it cheaper to borrow money from these moneylenders.

An individual takes a loan when he or she is in a considerable financial position. The main reason behind that is to avoid overstretching while repaying the loan. This is a great opportunity for anyone regardless of your income.

2.     Negotiations are allowed

When it comes to moneylenders, you can negotiate on the amount you need as well as the interest rate. One has the freedom to explain why he or she deserves the amount and also discuss the repayment period. In banks, you cannot find such a deal.

This is because banks have constant amounts as well as interest rates that cannot be changed for an individual. This is where you could build your trust in the moneylender. Having a good creditworthiness quality will you help you even in acquiring future loans. This is one of the superpowers that make money lenders prefer more.

3.     Fast approval

When applying for a loan from a moneylender, the process tends to be fast. All you need to do is submit the required documents. These documents include:

• Your debt-to-income ratio.
• Your credit score and history.
• A photocopy of your identification card.
• SPF statements.
• Income tax statements.
• Residential address.
• A printed copy and an original copy of the 3 previous payslips.

Once the moneylender has gone through your application, your loan will be processed immediately. You can get the money on the same day you apply. Indeed, it is quite a fast process.

This comes in handy when you need the money urgently. Urgency in money may be due to unpaid school fees, medical bills, wedding expenses, unpaid rent, and other house bills as well as business funding.

In other words, moneylenders offer hassle-free loan applications. They also have a smooth process of verifying submitted documents.

4.     Not so strict rules and regulations

Banks are known to have strict regulations when it comes to giving out loans. Banks tend to avid loaning small businesses or even young businesses.  They prefer loaning people with a high credit score as well as high regular cash flow.

These regulations limit a lot of business people as well as individuals. Moneylenders are not strict and loan whoever is in need as long as the required documents are submitted. If you own a business and the bank denies you a loan, this is the best opportunity to turn to a moneylender. However, they still have some rules and regulations that need to be abided by.

How To Identify Legit Moneylenders

You might be looking for a moneylender within your area to acquire quick loan cash. You should be aware that there are loan sharks within the moneylending business. They are risky and can frustrate you. Yes, they will offer money quickly but are not legit. Here are some of the ways you can identify a legit moneylender:

1.     They ask for collateral

As human beings, we like getting things easily. Loan sharks tend to use that trick to take advantage of innocent people. Most of the times loan sharks do not ask for collateral to gain your trust quickly. Legit moneylenders ask for collateral to complete the contract.

If you go to get a loan and the money lenders are too willing to give you money think twice. Yes, there is the reason giving of money, but if they pester you to take the money. That should act as a red flag.

2.     They do not ask for personal information

A legal moneylender cannot ask you about your private family and marriage life. The only private thing that could maybe be asked is the number of wives and children you have.

A loan shark can ask you to tell him or her all the private details regarding your family. They record these details and may use them to hurt you when you fail to repay the money.

3.     Checking out customer reviews

Most moneylenders have websites where people can apply online. You could try to research people’s reviews on different money lending agencies. This helps you know if the moneylender is legit or not.

It is advisable to avoid agencies that have no reviews at all or bad ratings. If there are also lots of complaints regarding a certain moneylending agency, avoid it.

Conclusion

When thinking of taking a loan, you should be very careful with who you are dealing with to avoid misunderstandings. You should also read the contract and understand it before signing it. You could get a long-term loan or a short-term loan from a moneylender. It all depends on your preference.

Loan sharks give their loans at high-interest rates which are not ethical. The kind of loans you can get from a moneylender are business loans, education loans, personal loans, wedding loans, house loans among many others. If you need clarification regarding loans, you can visit your preferred moneylender before applying for the loan.