Need to propel your business but lack funds?
This is a very common concern for the most entrepreneur. No business will take its full potential without a working capital to constantly run it, let alone expand.
If your business is already thriving, then you would need to level it up to widen its reach. Every entrepreneur will want to continuously grow their enterprise. 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 if does sounds accommodating, you need to consider its benefits and limitations.
Citibank Unsecured 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 which have 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 S$750,000.
Citibank Business Loan Documents Required
With every loan, there is a list of documents you have to submit. Each bank and financial institution have its unique 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 Company’s financial statements for the latest two years. Note that other business loan providers ask for financial statements at least for the previous year.
Citibank Unsecured Business Loan Details
Citibank offers business financing of up to S$350,000 with repayment stretching to four years. You may have your repayment schedules according to your business’ cash flow or opt for automatic monthly deduction. You must make sure that your bank account has sufficient funds to avoid penalties.
You can also get the funds in parts depending on what your business requires, 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. If you apply now to a couple of banks and money lenders with already low credit score, you will just 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? Do no need to buy a new equipment? Do you need the business loan to start a new venture or to 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 and 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 the eligibility list. 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 start-up SMEs. The loan applicant must have a business which has been in operation for at least three years.
- The minimum annual sales turnover is S$750,000. This is higher than the minimum annual sales turnover of other banks and licensed money lenders.
- Better rates are exclusive for CitiGold clients.
- Requires company’s financial statement for the last two years. Some business loan providers ask only for the financial statement of the previous financial year.
Looking for a better business loan? Check out Cash Mart’s business loan now!
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