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.