In Singapore, business loans are presented by more than twenty banks and financial institutions. A loan for business generally refers to a sum of money that a company borrows, to make the most for purposes related to the business. Funds are disbursed to the business entity, where the loan will be paid back with interest over an episode of time. While applying for a business loan the most common question that strikes you hard is which bank provides you the lowest interest rate for the business loans. There are different banks and corporate loan products which bear different interest rate. A distinctive term for business loan interest rate varies between the ranges of simple interest from 3.5% to 7% per annum, while the effective interest rate ranges from 6.5% to 13% per annum.
You can make use of your interest rate calculator for the business loan to ensure symptomatic monthly installments amount and costs for the interest. There are various types of small business loan Singapore. The most common form of working capital loan is the Unsecured Business Term Loan. The lump-sum major loan amounts usually range from $50K to $300K per bank. It is repayable via the equal monthly installments which again typically between the period of 3 to 5 years. Then comes the SME Micro Loan which is a government-assisted financing scheme for local SMEs. They fund you maximum up to $100K for companies with annual revenue of less than $1M or less than 10 employees. Also, there is an SME Working Capital Loan. This is a government-assisted financing scheme from Spring Singapore which was launched in June 2016 and provides up to $300K financing for Singapore SMEs. There are some other loan types as well which you can check on the websites. There are some typical business financing criteria and requirement which one must go through before applying for a business loan:
The least amount for annual revenue of $300K must be maintained.
The minimum average daily balance of $10K to be checked for availability in the bank account.
The operational history with your bank must be of 1 year rather preferably 2 years.
There is a broad variety of financing products and interest rates among the various banks and financial institutions. The credit criteria also differ for all the various banks. So you need to check on that as well. To make your job easy you are provided a loan assessment tool that you can make use of as a loan assessment tool to verify your company’s eligibility. Also, you can compare all the bank’s business loan offerings. If you straight away necessitate a fast business loan in Singapore, you can deem engaging an SME loan consultant to assist with the application process. Due to your acquaintance with the banks’ credit criteria, an experienced consultant can help you accelerate the turnaround time. In Singapore, most of the SMEs have a banking account with the three local banks due to their wide retail banking network and brand name expertise, which always is a highlighting factor.
Renowned companies like the Capitall Finance specializes in the holistic provision of finance to Small and Medium Enterprises (SMEs) which include but not limited to factoring, business and working capital loans, liquidity financing, expansion or acquisition financing and bridging loans. Such a reputed company leverages off the highly experienced industry personnel and will from association to test to disbursement and eventual repayment which hold fast to the strictest standards of professionalism and excellence as well. The application processing requires some time. It would require at around two to three weeks for most of the banks usually to process your application for a business loan. For more complex cases, the processing time may vary up to a month.
The 3 local banks are undeniably leading players in Singapore’s SME financing space. With such firm branding and sturdy balance sheets, the three homegrown banks continue to dominate Asia’s safest banks rankings year after year have been rated high by the satisfied customers who had applied for the business loans. Renowned companies like the Capitall Finance have had many firm appraisals from determined customers and proffer full range services to an equal blend of retail, corporate and institutional clients. The business loans which are disbursed to date sorting from bite-sized to larger quantum are easily available for the clients. We make it confident that a hand in glove fits between the borrowers and the type of financing that best suits their needs of the clients.
The banks provide you with different types of business loans, like unsecured bank loans, equipment loans, machinery loans, microloans, working capital loans, and various other asset-backed financing products. It also means that there are more avenues of financing as well as more probability for you to qualify for a loan. Each bank and the financial institution will present different types of Small and Medium Enterprises (SMEs) loans with different interest rates and requirements to qualify. However, there is no requirement for you to go through the hassles of digging for all the information. You will be able to follow it up on their respective websites.