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Loans

how to find the best sme loans in singapore

Your company is currently from strength to strength. He plans to expand his business and possibly diversify into another workgroup. But all your plans are saved for lack of money. You will soon realize that you need a small and medium loan to move on to the next phase of the business. But applying for a loan is easier than approving a loan application already. Here are ways how to find the best sme loans in Singapore.

Do your homework

You can claim more than one million rupees, but what is the cost of your loan? Find out before proceeding with your loan application. Your eligibility is calculated based on your income, business plan, credit score, and other factors. You can find out your eligibility after starting an initial meeting with a loan administrator at your preferred lender. Also, look for credit institutions that are subject to credit expansion for companies like your company.

Clean your credit history

This is an important step to follow before applying for a loan. The credit institution will verify your credit history and calculate your credit score before continuing to examine your loan application. From the more careful settlement of pending outstanding debts (including credit card bills) or settle the refund of them if it is not yet. If your company has a good payment history and there are no other payments pending, your credit score will be good.

Improved cash flow

The main area affected by all credit institutions is knowing if your company has a solid repayment capacity. If your cash flows are irregular, it is time to organize them before applying for a small and medium size loan. Therefore, you may need to simplify the billing and collection processes for your business to receive regular cash flows. One way to do this is to stimulate advance payments: this is useful when dealing with clients who pay in a cycle of 45 or 60 days.

Explore an existing relationship with the lender

If you already have a relationship with a bank or a financial institution, it is likely that the latter will offer a loan to your SME. You may have received a loan from a lender before, or have a checking account and a savings account at a local bank for several years. Opportunities for a well-known lender to lend you more.

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Loans

5 Things You Should Know Before You Plan To Cover The Costs Through Wedding Loan

Getting married anytime soon?

The most important thing about the wedding is how you’re going to cover the costs. And if you’re planning to take a wedding loan to cover the costs then hold on and give a heed to the 5 necessary things to consider. According to the survey by the Knot, the national average cost of a wedding is $33k. But you don’t have to match that figure to have an awesome wedding; instead, you can make your wedding a wonderful experience at any budget and without going for a wedding loan.

There are 3 key strategies to follow:

  • Fix a budget and stick to it
  • Set priorities
  • Start saving as soon as you say those 3 magical words

We share with you 5 things to consider before you plan to cover the costs of your wedding through a wedding loan.

5 Things to consider before you go for a wedding loan:

1. Wedding loans- what is it?

In general, a “wedding loan” doesn’t exist and all you can do is just take a personal loan for your wedding. Most people either choose to go for a credit card purchase or a wedding loan. In either way, you are kicking off your marriage with a future of debts.

2. How much money does a wedding loan offer?

Okay, if you still want to opt for a wedding loan then you would want to know how much money you can get with such a loan. The loan amount can range from $1000 to $50,000. There are lots of online companies which offer a loan without any prepayment penalties such as Upstart.

3. Process and documents required to get a wedding loan

If you’re planning to take a personal loan to cover up your wedding costs, then there are a couple of things you need to consider. How eligible are you for the loan and what factors influence your affordability?

Here’s what you need to get a personal loan to cover your wedding costs:

• A good credit score and rating

The first thing that would affect your loan affordability is your credit score. How?

Your credit score is a number that defines how you manage your finances, debts etc. This number is calculated based on the following factors:

  • Your payment history
  • Your debt history and your current debts
  • What type of credits you have
  • For how long your credit accounts have been used
  • Your credit limits and how much you’re using

In general, having a score above 700 is considered a good credit score. Not sure what is your score? There are lots of online calculators to know your credit score.

• All other requisite documents

Apart from your credit score, you will have to produce all the necessary documents to apply for a loan such as:

  • Your proof of income
  • Bank statements
  • Any debt statements such as mortgage, student loan, home loan etc.

The institution where you apply for a loan might have specific requirements, qualification etc. You need to find it out from that institution for the details.

4. Should you go for it?

As in the case when you don’t have enough cash to cover the wedding cost, you opt to go for a credit card or a personal loan. Be it anything, you are starting your new phase with a debt-full future. And thus, the decision should be made by discussing with your partner as its going to affect your financial decisions after marriage. It’s a call to be taken by both of you whether you want your phase to begin with a financial crunch just after you come back from your honeymoon. If you choose to have a financially balanced future, then there are alternate ways in which you can have a wonderful wedding at the cost you want.

5. Are there any alternate ways to cover the costs?

Let us have a look at the alternate ways available to cover the cost of your wedding without opting for a wedding loan or credit card:

  • Best thing to do is get married when you’re well prepared not only emotionally but financially as well. Take time and start saving for the big day
  • Have an out of season wedding or a Saturday wedding
  • Cut costs on a photo shoot, décor, cake, guests etc.
  • Wedding location & reception: Pick a municipal park, beach, a backyard theme etc. as the big day location.
  • Choose a simple food menu in place of exotic cuisines
  • DIY options for car décor, cake, and other essentials

Summing up:

Budgeting for your wedding can be an arduous task. But instead of going for a wedding loan, you can always consider other ways to save costs and still have a dream wedding.