6 TIPS FOR GETTING YOUR BUSINESS LOAN APPROVED IN SINGAPORE
You may be considering to obtain a business loan in Singapore for your company at this point of time for various reasons….
1. Company Must be incorporated for more than 6 months
A new company is difficult for financial institutions to judge if you are going to still be around after a few short months. This is why you need to make sure that your company has been incorporated for more than 6 months before you apply for a business loan in Singapore if you are a new start-up. The age of the company does provide more confidence to financial institutions because the greater the age the greater the perceived stability your company has.
2. Have Good Credit Bureau Singapore (CBS) Records
It is always important that the directors of the company maintain and have good credit ratings on the Credit Bureau Singapore (CBS) records. These records indicate how prompt your payments with financial institutions have been as well as how much loans you currently have. This will give the loan provider a better idea of whether your company will have the ability to pay back the amount that you are borrowing. A bad record always gives a negative impression to the loan provider and therefore less confidence in granting a loan.
3. Good Maintenance of Bank Balance
This is another factor that can potentially increase the chance of getting your business loan approved. This simple act of being able to maintain a bank balance on your company’s bank accounts. This will instill greater confidence that you have the capability to pay back the amount that you are intending to borrow.
4. Having Current Projects on Hand
If you have projects, it also mean that your company is still in business. It also means that your company is able to continuously generate income. Being able to generate income will provide the confidence of being able to return the loan amount. When applying for a loan, you can also imagine a friend borrowing money from you. What will you think about or consider before lending your friend money? You would probably also like to know if your friend has the capability and means to be able to pay you back.
5. Not More than 2 Returned Cheques for the Past 6 Months
Having returned cheques can leave a negative impression because it would seem that your company hasn’t been able to keep up a sufficient balance on your corporate bank account. Always make it a point to have a sufficient balance of your bank account before issuing out any cheques for your business.
6. Having a Loan Consultant
When in doubt, always consider someone who has a great amount of experience helping companies obtain successful loans. Having a loan consultant can help you save plenty of research time and can point you in the right direction much faster. They can also provide advice that can help greatly increase the chances of getting the business loan that you need in Singapore.