Getting your business through the first few years can be pivotal and requires you to have working capital to cruise through without tragic hiccups. However, not always do we have enough money to keep those operations running smoothly, and you may need to get a loan from money lenders in Singapore for those dreams of more clients, business expansion, and better earnings to start taking shape. That said, getting a business loan is not something you just wake up to, you need a working plan, vision and most of all preparedness.

Below are ten things to consider when borrowing money from a money lender in Singapore.

1. What is your reason for the business loan?

Apparently, the first instinct that kicks in is that you want to maintain or grow your business into an authoritative enterprise. Well, as much as that is true, you need to dig a little bit deeper and be more specific with your objective.

Entrepreneurs borrow loans for all manner of reasons. For instance, one may want to increase the production of cupcakes especially on specific days when they experience a bump in demand like during valentines or Christmas Eve. To successfully satisfy the market without having to forgo the quality of your product, you will need to consolidate additional working capital, and that might mean hiring an extra pair of hands.

Reasons for getting a small business loan are endless and only vary from one person to another. Whether you intend on buying new equipment, settling existing debts, or renting a new place for expansion the rule of thumb is to identify it on your business plan as it will keep you focused. It might prove helpful to see your loan as an investment that will help your company flourish in the future.

2. Are you in a position to repay the loan?

Many times when getting a loan we focus so much on the interest rates and quickly forget about other fees that banks and financial institutions are capable of charging us. Conduct a financial analysis. Knowing whether you can repay the loan you are taking is just as important.

It is prudent that you compare loans and go even further to ask for quotes. Online lenders are ideal and desirable for business loans. The primary obstacle with banks is that their loan packages are fixed and lack the fluidity to cater for the unique needs of your business entirely.

3. How urgent is the loan?

Depending on how soon you may need the money, banks fail flat out when it comes to immediate loans. For instance, a business opportunity presents itself without as much as a warning as they often do and it requires quick reaction on your part. Like that equipment you have been tracking for a while now is suddenly up for sale but coincidentally you lack enough funds to purchase it. Waiting is no option either for buying it now will save you a lot more. You cannot rely on the bank loans as we all know how they can stretch for weeks to get processed and even then does not guarantee positive results.

Online business loans provided by licensed money lenders in Singapore boast of a shorter process that can take as little as less than 24 hours to get processed.

4. How much working capital do you need?

First, go to your accountant or bookkeeper for financial advice. Then make a realistic business plan that adequately addresses your needs without excluding anything vital. Rule of thumb, borrow only the amount you need. Acquiring a loan comes with a financial responsibility that you must meet to avoid severe penalties such as bad credit score.

Utilize loan calculators as they are essential in letting you on the know when it comes to the total amount you have to pay and all the repayments on your loan term option.

5. What type of lenders do you need?

There are various types of lenders out there and so are their loan products. The good news is that traditional banks no longer limit your options. Recall that banks offer rigid business loans that do not blend well with your business’s goals and have strict lists of eligibility.Registered money lenders provide by far the best loans suited for your small business.

6. Are you willing to share your story with your lender?

Moneylenders will want to get an idea of your business by asking about the nature of your business, earlier ventures, credit experiences and set goals. To gain trust and get on their good side you need to show them that your company is both lucrative and has a massive potential for so much more. This reassures the lenders that you are capable of repaying the loan, and therefore they are more willing to hand out the cash. To achieve such a milestone you need to reveal who are your clients, ways you manage your business, how you deal with your credits and the achievements you have made so far.

7. Are your documents prepared?

Money lenders are very wary of dishing out money to individuals who lack a solid financial background. They are very strict when it comes to qualification, and you need to show them documents that prove that your business is thriving and thus worthy of the loan. These could include bank account statements, Income Tax Notice of Assesment and other financial reports.

8. Is your credit score good enough?

Before applying for any loan, it’s critical that you get a copy of your credit score. Knowing your credit score sets you up nicely for the next move you need to make. Firstly, it cautions you on the type of lender that is best suited for your needs or whether you should wait a little bit longer to build your credit score before applying. Why?

In most cases, a borrower with a poor credit score is automatically rejected: wasted energy and time. Moreover, a loan application further dents your credit score because every loan application is taken into account.

9. Do you have other debts?

For those that have debts, you need to prove that you have sufficient cash inflow to contain additional financial responsibilities. It is always advisable not to hide any indebtedness from your lender because sooner or later it will show when they go through your credit report. For the sake of argument let’s assume that you manage to get away with it, the financial demands will certainly overwhelm you making repayment an even more daunting task

10. How has your relationship been with previous moneylenders?

I cannot emphasize enough how rewarding it is maintaining a positive relationship with your lenders. For one, you are quickly entered into the pre-approved list. Secondly, You are teaming up with an intimate financial partner that you can quickly turn to for another loan because of you long-standing and trustworthy relationship. Also, the loan approval will be quicker for you and perhaps with more substantial loan amounts.

We understand that applying for small business loans is frustrating but getting acquainted with the processes involved can shed off some weight making it more worthwhile. Plus at the end of it all, you will be more knowledgeable and wise to pick an option that best meets your unique needs.

If you need cash, you might’ve heard of licensed money lender in Singapore. But, who are they, what do they do, and how are they different than a traditional bank lender you would go to when you need to borrow cash? If you are reading this, these are a few of the questions you have, and need answered. Most banks simply are not going to lend money to those who earn $3500 a month but owe over $5000 a month to creditors; you are a risky borrower and you run the risk of default. On the other hand, a licensed money lender in Singapore might.

Licensed money lenders

In Singapore, these lenders are licensed by the Registrar of money lenders to provide loans to borrowers. Restrictions on how much can be lent, and fees they can charge, are put into place. Money lenders are businessmen, a good reputation is important to avoid scaring off potential borrowers. When chasing down borrowers who owe them money, it is done in a similar fashion as banks. Smaller loans, speedy lending, higher interest, and forgiveness of lower credit, are a few of the reasons people turn to money lenders, if they know they won’t get a loan with a bank, or if they have been turned down by a bank and still need to borrow money for any reason.

1. Smaller loans

One institution offered me $1500, even though my income was over $30K when I contacted them. But, with these money lenders, legal restrictions is 2-4 times your monthly income, in terms of the amount they can actually offer you in terms of a personal loan. So, for those who are in dire or urgent situations, and only need a small amount to borrow, a money lender may be a viable option. If on the other hand, you need to do major work, or require a much higher loan amount, you probably will not get what you need, or the amount you desire, when you turn to a money lender in request of a loan.

2. Speedy service

Flexibility is nice; with most lenders, you will be approved instantly. So, there is no wait period, or several days to weeks, until you find out if you are going to be approved. Again, they are here for smaller loans, so you are not going to have to jump through hoops in order to be approved for the loan amount which you are asking for with these lenders. If you don’t have the best line of credit, you still can possibly be approved with a money lender. Again, lending limits are lower, and you might not get as much as you request, but you are still far more likely to get an approval, as opposed to going to a bank, which is probably going to outright decline the offer for any loan amount you request.

3. High interest

By law, money lenders must discuss this with a borrower face to face. So, you are going to know what your interest rates are, and what they are based on, when you choose to take out a loan with a personal money lender in Singapore. You are likely going to be looking at something in the line of 20-30% with most lenders, so you shouldn’t be surprised if this is the figure you are getting when you apply for a loan. You will pay a higher interest rate for convenience, and the instant approval you are going to get, when you choose to go with a money lender, as opposed to going the traditional route and taking out a loan with a bank lender.

4. Credit assessment forgiveness

When it comes to credit score, and credit worthiness, money lenders are not nearly as picky as a bank. In fact, as long as you have the income, and the proof you can repay it, and as long as you meet their terms (live locally, age,etc.) most money lenders you do apply for a loan with, are likely going to approve you as a bad credit borrower who approaches them. Keep in mind background checks are still run. So, if you have high debt with plenty of credit cards, or if you are in default or still owe several other money lenders, there are many money lenders who will not extend you a loan offer. And, with just cause. but, if you were late on a few credit card payments, or if you have a few other negative marks on your credit report, this is not an auto rejection, as it might be, if you were to approach a bank lender when trying to take out a loan. So, even if you feel you might not be approved, it is worth applying if you do need a small cash amount, and you do not have anywhere else to turn to for the funds.

Banks are not going to be nearly as lenient. And, with a bank, you are going to wait at least a few days for an approval, if not a few weeks, when you are applying for a loan. So, for those who only require a very small lump when they are borrowing, do not want to wait it out, or simply have no other alternative, a money lender, even though they are going to charge you a high interest rate, may just be the solution you have been looking for, when the time comes to take out that personal cash loan.

When the time comes for you to apply for a small cash loan, there are quite a few options out there from which you can choose as a borrower. So, even if you are a low or poor credit borrower, or have outstanding debts which you do owe, it is still quite possible you are going to be approved when you go through a money lender. Above are a few of the differences you are going to find with these lenders, which you are not going to get if you were to try to take out a cash loan with a traditional bank lender in Singapore.

When it comes to  personal loan in Singapore, some people are afraid of borrowing, others believe loans are superior to credit cards, and a third group actually knows how to utilize these funds. When applying for a loan such as personal loan or payday loan through a licensed money lender in Singapore there are certain myths you need to weed out as a borrower. Below are a few of the myths many people have, simply because they don’t understand how the loans and the repayment terms truly work.

1. Only those who need cash should borrow them

This is true on one end, but there are many ways to utilize these loans. If you wish to consolidate debts, build up your credit score, or pay one larger bill with the personal loan, at a lower interest rate, why not use these cash funds to do so? Anyone, even those with stellar credit, and available cash, can benefit from the persona loan, as long as they know how to properly utilize it to their benefit.

2. I will simply increase debts

Again, this isn’t true. As a matter of fact, the right loan can help you get out of debt faster. When you use it to your power, you can pay off other debts faster, such as credit cards. And, with a much lower interest rate, this will help you get rid of debt faster, for less, and still have cash in hand for other items you need or wish to buy.

3. I should take out more than I need

This isn’t true either; in fact, with loans over $1000, a 9% and higher rate can apply. So, if you do not need this much, a lower borrowing limit will keep the interest rates down as well. Why would you take out more than you need? Isn’t this what has gotten you in trouble with credit cards and other forms of debt in the first place? Don’t get into the vicious cycle. When it comes to taking out the loan, only apply for what you need, as this is going to benefit you and help you build up your credit as a borrower over time.

4. I’m in debt, why take out more?

Think of it this way. Your credit cards are charging you up to 24%; with money loans, you can pay as low as 6-8%. So, why not pay off higher debt, with a much lower debt form of borrowing? If you use the funds appropriately, it will make far more sense, and it will allow you to eliminate those higher debts and interest rates, in a much shorter period of time as a borrower. So, borrow, but do so wisely, and make sure you are paying off the higher interest rates accounts first.

5. Its better than a credit card

Yes, but not. With loans higher than $1000, the 9% and higher interest rate kicks in. So, if you aren’t careful, it can still add up and take a toll on you financially. If you know how to use it wisely and are only borrowing what you need, it can benefit you. But, bear in mind, if you are a high credit borrower, this is not the cheapest way in which you can borrow cash. You should shop and compare prior to borrowing, in order to ensure you are truly going to find the best rate when you do borrow cash.

6. I don’t meet the income requirement

Most banks will require a $30,000 annual income to even consider you for a loan; if you don’t meet this you should instantly go to a money lender, right? Not necessarily. With a very low income level, many lenders will charge you a significant amount of interest, as you are a riskier borrower. So, you still have to be careful where you are borrowing, and fully understand the terms of your loan. You can borrow mindlessly and just hope things work out. You have to know exactly what you are getting into, to avoid getting into a situation which you can’t afford.
There are a number of myths as it pertains to loans and money lenders in Singapore. But, when you know what you are doing, you don’t have to worry about falling into the trap, and getting stuck with high debts you can’t afford to repay. You may also read on: Are you in need of a Personal Loan for Low Income Singapore?

Let’s be real frank right here – Money makes the world go round, you couldn’t agree more with this, isn’t it? Being ranked as the top cities to live in, Singapore is unfortunately the highest cost of living city in the world. In fact, just when you thought the cost of living couldn’t get any higher, you are so wrong. Everything is increasing, like the healthcare, housing, petrol, food, basic necessity but the only one that stays stagnate would be our salary. Most Singaporeans couldn’t agree more with this and it is extremely difficult to save up on monthly basis due to the monthly bills and commitments as well.

According to Singapore Business Review article, almost half of the Singapore population have little or even no savings at all. This is a saddening polling results. Fortunately, this is not the end and there is still possibility to turn your financial situation 180 degree around. It is time for you to take a leap of faith, you need to start building up an emergency fund and the future you will be thankful.

Why is emergency fund necessary?

We all know that accident happens, anything can happen anytime and at any point of time. Unless you are equip with special superpower to predict the future, if not, there is absolutely no way you can know when will an emergency arise. All it takes, is just one major event to drain you out and leave you in debts. Times like this, what are you supposed to do? Approach your friends and families for help? How much help can you get? What if you don’t?

There are always options and one of the alternative could be getting a instant personal loan or urgent payday loan from licensed money lenders in Singapore. Even though it may not be the best option, but let’s admit, it will solve your current problem much faster than other options such as banks.

This acts as a financial buffer for you as it protects your savings from unforeseen circumstances such as:

1. Medical Bills:  In Singapore, most of us are protected by MediShield and able to use Medisave, but you still need to take out a sum of cash to pay off your expensive bills. It all depends on the conditions, the length of your stay and the class of your ward. All these can easily drain off your savings.

2. Home Appliances or Auto repairs: Having to repair your car and aircon can be quite be quite draining as the cost can go up to 3 digits or even 4 digits, depending on the conditions.

3. Loss of jobs: As Singapore is experiencing economy downturn, the retrenchment rate is rising. In the event of retrenchment, despite having one month salary compensation, you are expected to have at least 6 months worth of savings (after you minus the expenses) to keep you financially afloat.

Hence, this is why you should always have an emergency fund!

How much do you need for your emergency fund?

First thing first, how much do you need to your emergency fund? How much is considered enough?

There is no absolutely answer but it is good to always follow a guideline and it also depends on your monthly income. If you are expecting a fixed income every month, the possibility of saving up for an emergency fund will be more easy peasy as compared  to those doing part time casual jobs. Having a fixed income monthly will be easier as you have a calculations as to how much cash flow you are expecting each month.

Ultimately, the most ideal plan will be building an emergency fund of at least 6 months worth – factoring the remaining monthly savings after you minus the expenses such as insurance, utilities, transportation, groceries, credit cards repayments and etc.

How do you build your emergency fund?

There is absolutely no short cuts to save up an emergency fund. It boils down to a few factors such as your financial situation, you individual discipline and determination as well. Emergency fund might take slightly longer time to build if your monthly salary is acceptable whereas your expenses are very high. But then again, you know that everyone has to start somewhere and it is essential to start building because you are unable to foreseen any unconventional events.

Let’s say for instance, you make a fixed income of S$4,000 a month but your liabilities take up about S$3,000 – that leaves you with about S$1000 a month to put into your emergency fund. If you need at least 6 months’ worth of expenses to build up your emergency fund – that means you’ll need at least S$18,000 – which will take you 18 months to build if you put in S$1000 every month.

Bottom Line

Do remember that it is not all about the speed, it is about the process and getting there. No matter you take how long, I am sure you’ll reach your goal eventually. There might be distraction along the way but you should know what’s best for yourself. If you have free time on your rest days, you might want to take up side income to help you achieve your goals.