3 Non-Bank Alternatives to Standard Chartered Business Loan in Singapore

Need assistance with your business’s cash flow? Standard Chartered Business Loan might be the solution. But don’t forget to check other non-bank alternatives.

Having your own business is not simple. First, it needs a lot of time. Then, of course, it needs cash to keep it afloat.

Depending on your business, it will need some time to get back your invested capital. Also, it needs to keep up on specific seasons. Plus, you want to expand it after a few years. Then you will need additional funds.

Where can you get a loan for your business? Of course, you can get it from banks that offer business loans, such as the Standard Chartered Business Loan.

Standard Chartered Business Loan

Standard Chartered Business Loan Eligibility

This loan is for Singapore-registered businesses with 50% or more shareholdings held by Singaporeans or Permanent Residents in the city-state. Your business must be in operation for a minimum of three years.

You may meet these requirements. But you have to prove that your business has at least a minimum turnover of $500,000.

Standard Chartered Business Loan Requirements

You will need to present your passports and valid identity cards. If you have a business co-owner, then they must present IDs too. Also, you need to submit your company’s current bank account statements for the last six months.

Aside from these, you need to include your company’s financial statement, Income Tax Assessment, and the last 4 Quarter GST Statements.

Standard Chartered Business Loan Details

The maximum loan amount you can borrow is S$300,000. It is within a loan period of 12 to 60 months. In addition, they require no security or collateral. But you need sufficient documents to prove that you have a thriving company.

The EMI means Equated Monthly Instalments. The instalment to be paid each month comprises both principal and interest components.

3 Non-Bank Alternatives

Credit Card Financing

Of course, a credit card means instant financing. As an alternative to Standard Chartered Business Loan, a credit card is more accessible. If you already have a credit card, you can make a general purchase. Then, use its instalments plans which are usually 0% interest charge.

If you do not use the instalment plan, you can earn cashback and rewards. Thus, giving you some savings.

However, this option needs wise planning to maximize the benefits of the credit card. For example, if you use the instalment plan with 0% interest, you need to make sure that you never fail to pay every due date. It helps to avoid high-interest rates.

Crowdfunding

Crowdfunding is not a new idea for startups. If you are already an existing business, you can use this to introduce a new product. The most common crowdfunding platforms are Indiegogo, Kickstarter, and Gofundme.

You surely can’t get a business loan from Standards Chartered for startups. The crowdfunding option does not only gives you the chance to get the capital you need. Also, it can build up your potential reach even before your business starts.

However, some platforms charge success and membership fees. It applies if you successfully get your target amount. Then, your investors and donators will also have high expectations for you to meet. Failure to meet these expectations will ruin your business name.

Licensed Money Lenders

Licensed money lenders have an online application process. That’s why it is very accessible. Also, they may ask for fewer documents. It means less hassle for you. In addition, you will still be able to keep your credit score healthy as long as you pay on time.

You may still get declined if you have a very low credit score. However, it would be best if you did not get discouraged. Money lenders have various ways when giving scores to their borrowers.

There are a lot of legal money lenders here in Singapore. They provide quick cash loans to entrepreneurs. However, you must make sure that your lender is registered.

Conclusion

While there are many options other than banks, you need to consider your needs carefully. Make sure that you understand the terms and conditions. Should you have any questions, do not hesitate to ask. Or else, you might be entering a serious financial problem.

Borrow only the amount you need, not the amount you want. Also, it would help to develop a business plan first. Then, decide the amount you will apply for.

If you want to expand your SME with less hassle than banks, you can quickly get it from Cash Mart. Cash Mart offers a business loan tailored to your specific needs.