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Necessary Things to Consider Before Applying for a Corporate Loan in Singapore

While it is easy and quick to apply for a business or corporate loan in Singapore, you should still prepare ahead of time to increase your chances of approval.

What makes SMEs decide on this?

  • Available to all companies, even those that are not eligible for loans backed by the government.
  • Take out a loan for up to S$500,000 with a 7% interest rate. Support the growth of your company or your operational costs. The bank makes an appraisal and approves the loan amount.
  • Enjoy a flexible payback schedule of one to five years by taking up to five years to repay.

These are some excellent pointers to aid in the preparation of your loan application.

Analyse the available business finance choices.

SMEs in Singapore have access to a range of business financing choices. For instance, banks like DBS provides unsecured loans, such as its Working Capital Loan and Business Term Loan, which may help you increase your working capital. There are other secured loans available for a variety of uses, including the purchase of commercial real estate and the financing of equipment. It’s critical to research all of the available options for business loans and choose the one that best fits your needs.

Organise your business documentation.

You must maintain organised records, including financial statements and account statements. The bank will carefully consider this when evaluating your loan application since it shows transparency and provides an accurate assessment of your company’s financial situation. Make sure your business has procedures in place to maintain organisation. To keep your finances structured and current, think about employing a certified public accountant, choosing an online platform, or handling your accounts yourself.

Continue to have good credit.

Banks in Singapore are likely to review your credit history if you ask for a business loan. Maintaining good credit is crucial when applying for a loan. This entails finishing up and paying off all of your debts to prevent winding up, foreclosure, bankruptcy, lawsuits, or even filing several loan applications at once. You can increase your chances of getting a business loan by proving your credit score is high.

A high credit score indicates to lenders that you are a trustworthy borrower who will be able to pay back the loan. It might also assist you in obtaining better loan conditions and interest rates.

Ensure you can repay your loan.

When applying for a business loan, the bank will assess your ability to repay your loan. This means you should be able to demonstrate that your cash flow is sound and also secure a guarantor on your loan. You will need to prepare your income tax assessment for submission, as well as records of any existing debt you have. You’ll also need the NRIC and income tax assessment of your guarantor, where required, for submission.

Having a strong business plan that details how you intend to use the loan to expand your company will also help improve your chances of getting approved. It’s critical to be open and honest and to include all supporting material for your application.

Prepare all of your documentation ahead of time.

Make sure you include all of your supporting documentation when you apply to guarantee a smooth application procedure. This comprises copies of your passport or NRIC, your income tax evaluation, the bank and financial accounts of your firm, identification certificates, and the income tax assessment of your guarantee. In as little as five minutes, you can apply online for a corporate loan, making it simple to apply for a commercial loan in Singapore.

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