Need assistance for your business’ cash flow?
Having your own business is not simple. It needs a lot of time, and of course cash to keep it afloat. Depending on your business, it will need some time to get back your invested capital. And if it needs to keep up on certain seasons or 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 which offer business loans such as the Standard Chartered Business Loan.
Standard Chartered Business Loan
Standard Chartered Business Loan Eligibility
This loan is offered to Singapore-registered businesses with 50% or more shareholdings held by Singaporeans or Permanent Residents in the city-state. Your business must be in operations 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 S$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 he or she has to present IDs too. You are also required 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 which you can borrow is S$300,000 with a loan period of 12 to 60 months. There will be no security nor collateral required, but you need sufficient documents to prove that your company is thriving.
The EMI means Equated Monthly Instalments. The installment to be paid each month comprises of both principal and interest components.
3 Non-Bank Alternatives
- Credit Card Financing
Of course, credit card means instant financing. As an alternative to Standard Chartered Business Loan, a credit card is easier to get. If you already have a credit card, you can make a general purchase then use its installments plans which is usually 0% interest charge.
In case you do not use the installment plan, you can earn cashback and rewards, giving you some savings.
However, this option needs wise planning to maximize the credit card’s benefits. If you use the installment plan with 0% interest, you need to make sure that you never fail to pay every due date to avoid high-interest rates.
Crowdfunding is not a new idea for start-ups. If you are already an existing business, then you can use this to introduce a new product. The most common crowdfunding platforms are Indiegogo, Kickstarter, and Gofundme.
For startups, surely you can’t get a business loan from Standards Chartered. The crowdfunding option does not only gives you the chance to get the capital you needed, but it can also build up your potential reach even before your business starts.
However, there are some platforms that charge success fee and membership fee should 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 which is very accessible. They may also ask for fewer documents which mean less hassle for you. Also, 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, you must not get discouraged. Money lenders have various when giving scores to their borrowers.
There are a lot of money lenders here in Singapore who are willing to give a loan to entrepreneurs, however, you must make sure that your lender is registered.
While there are a lot of options other than banks, you need to consider your needs carefully. Make sure that you understand the terms and conditions. Should you have any question, 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. It would help to first develop a business plan before deciding the amount you will apply for.
If you want to expand your SME with less hassle compared to banks, you can easily get it from Cash Mart. Cash Mart offers a business loan tailored to your specific needs.
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