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Citibank Business Loan Limitations You May Not Know

Need to propel your business but lack funds? A Citibank business loan is what you might need. Understand how it works and its limitations.

It is a widespread concern for most entrepreneurs. No business will take its full potential without the working capital to constantly run it, let alone expand.

If your business is already thriving, you need to level it up to widen its reach. Every entrepreneur will want to grow their enterprise continuously. If your enough savings is still not enough, but you think this is the best time to make the next move, then you have to get a business loan.

Most banks offer business loans. While it does sound accommodating, you need to consider its benefits and limitations.

Citibank Unsecured Business Loan

Citibank Business Loan

Citibank Business Loan Eligibility

Of course, you must not be surprised if one of the boxes to tick on the eligibility list is being a Singapore-registered business. Unlike other banks, Citibank qualifies even businesses with at least 30% or more shareholding held by Singaporeans or Permanent Residents. Other banks require at least 50%.

Your business must be in operation for the last three years with a minimum annual sales turnover of $750,000.

Citibank Business Loan Documents Required

There is a list of documents you have to submit with every loan. Each bank and financial institution have an impressive list of requirements.

With Citibank Unsecured Business Loan, you need to provide a duly accomplished Application Form, your company’s operating bank current account statements, Income Tax Notices of Assessment, and the company’s financial statements for the last two years. Other business loan providers ask for financial information, at least for the previous year.

Citibank Unsecured Business Loan Details

Citibank offers business financing of up to $350,000 with repayment stretching to four years. You may have your repayment schedules according to your business’s cash flow or opt for an automatic monthly deduction. You must ensure that your bank account has sufficient funds to avoid penalties.

Also, you can get the funds in parts depending on your business’s requirements, or you can get it on lump-sum disbursement if you have immediate business needs.

What to Consider When Applying for a Business Loan?

Is your credit score healthy enough?

Business loans are still loans. If you are applying for a business loan from a bank such as Citibank, you will need a good credit standing. If you are unsure about this, you can get a copy of your credit report from the credit bureau.

The credit score range may vary depending on the bank or financial institution, but seeing your credit reports will give you an idea of how you will generally fare. Unfortunately, if you apply now to a couple of banks and money lenders with low credit scores, you will make it worse. Why? Because every inquiry on your credit report will also be recorded.

Does the business loan fit your business needs?

Of course, you need to identify the specific reason why you are applying for a loan. Do you need to expand by buying a new property? Is a new equipment procurement necessary? Do you need the business loan to start a new venture or keep up with your current production?

There are too many business loans offered in Singapore. Do not settle on the first option you’ll see. Shop around. You will see the best fit for your business. Some business loans are only for already existing businesses, while others are offered for startups. Some loans are multi-purpose, while others are only for equipment purchasing.

Can you meet the eligibility?

Each bank or moneylender has a different set of eligibility lists. In fact, one of the first things you must check is the eligibility of the business loan. Does your business meet the required minimum annual sales? Can you provide the documents required?

Possible Limitations of Citibank Business Loan

  • This loan is not for startup SMEs. The loan applicant must have a business that has been in operation for at least three years.
  • The minimum annual sales turnover is $750,000. It is higher than the minimum annual sales turnover of other banks and licensed money lenders.
  • Better rates are exclusive for CitiGold clients.
  • Citibank business loan requires the company’s financial statement for the last two years. Some business loan providers ask only for the financial statement of the previous financial year.

If you genuinely need quick cash for your business, whether a startup fund or a revolving fund, apply for Cash Mart. It has a reliable business loan that approves eligible borrowers. Check it out now!