How to get business loan in singapore

How to Get a Business Loan in Singapore: A Comprehensive Guide

Are you an aspiring entrepreneur in Singapore looking to take your business to the next level? One of the crucial steps in fueling your business growth is securing the necessary financing. With numerous options available, navigating the process of obtaining a business loan can seem daunting.

However, with the right knowledge and preparation, you can increase your chances of success. In this guide, we’ll walk you through the essential steps to secure a business loan in Singapore.

7 Factors To Consider

The evaluation process is pivotal when applying for a business loan in Singapore as it aids financial institutions in assessing a business’s ability to repay the loan. At its fundamental level, eligibility criteria are employed to identify borrowers who meet basic requirements, such as being registered in Singapore.

Beyond this lies the credit evaluation criteria, which assists financial institutions in gauging the likelihood of a borrower defaulting on a loan. These criteria vary from lender to lender and sometimes across different loan products.

Here, we outline 7 factors that banks or private funders typically consider when reviewing a loan application.

  1. ACRA Business Profile Information: The documentation from the Accounting and Corporate Regulatory Authority (ACRA) assists lenders in understanding your business’s structure, encompassing details regarding directors, shareholders, paid-up capital, and any other pertinent information necessary for processing the loan application. You can access your business information from ACRA by downloading it.

  2. Notice of Assessment of all Directors: The Notice of Assessment (NOA) from company directors spanning the last two years is another crucial document. It aids lenders in determining a borrower’s eligibility for borrowing and the loan tenure.

  3. Latest Credit Bureau Singapore Report of all Directors: The Credit Bureau Singapore (CBS) report for all directors is the third essential document required. It provides lenders with insights into any existing loans held by company directors, their repayment histories, and unsecured loan amounts.

  4. Last 2 Years’ Company’s Financial Statements: Lenders also require your company’s financial statements from the past two years, including profit and loss statements and balance sheets. For companies less than two years old, first-year statements are sufficient.

  5. Bank Statements Over the Last 6 Months: A bank statement covering the previous six months from the application date is necessary for applying for a business loan in Singapore. It enables lenders to understand the day-to-day banking activities of the company, including revenues, expenses, and month-end balances.

  6. Private Properties: In instances where businesses are ineligible for bank loans, private funders may provide an alternative source of financing. Some private funders assess the owners’ backgrounds, such as private property ownership, which can serve as collateral for the loan.

  7. Accounts Receivables Aging List: Although typically optional, an Accounts Receivables Aging List can enhance the array of loans accessible to a business. This document contains details about clients and anticipated payments for services or products rendered, aiding in eligibility assessments for loans such as invoice financing.

General Processes of Applying A Business Loan

  1. Application Submission: Depending on your chosen lender, you can either apply online or visit their premises to submit your application. 

  2. First Call Back: After submitting your application, a representative—usually a relationship manager from the financial institution—will reach out to gather more information about your business.

  3. Submission of Documents: At this stage, you’ll be asked to provide the documents mentioned on top.

  4. Second Call Back: If further clarification is needed on the submitted information, a second call back may be initiated.

  5. Approval Process: Your assigned relationship manager submits your documents for approval by the lender.

  6. Business Loan Proposal: Upon approval of your loan application, your relationship manager will present several loan products tailored to your business’s needs.

  7. Site Visit: In some cases, your relationship manager may request a site visit to gain a comprehensive understanding of your business operations.

  8. Document Signing: Once all requirements are met, you’ll be presented with a loan agreement to sign. Take careful note of details such as the loan amount, interest rate, effective interest rate, penalties, and defaults.

  9. Disbursement of Funds: Upon signing the agreement, the agreed-upon funds will be disbursed into your corporate bank account.

Applying for Business Loan In Singapore with FundRego

Applying for business loans directly from banks or financial institutions can be a daunting process due to the plethora of options available, each with varying interest rates, tenures, and application methods. However, with FundRego, we simplify this process by serving as a business loan matchmaking platform, connecting you with the best loan suited to your needs, whether from banks or private funders.

  1. Simplified Process: FundRego grants you access to all available lenders capable of providing funds to your business, eliminating the hassle of searching for lenders on your own.

  2. Focus on Important Matters: By entrusting FundRego with the tedious task, you can concentrate on essential aspects such as building and growing your business.

  3. Access to the Best Options: With a range of loan options at your disposal, FundRego ensures you receive the most suitable selection for your business interests, sparing you the effort of comparing options yourself.

  4. Turning Impossible into Possible: When applying independently, it’s common to face difficulties in securing a loan or obtaining the desired amount due to financial constraints. However, with FundRego’s extensive network and relationships with lending partners, we turn seemingly impossible situations into achievable outcomes.

Instead of spending significant time in applying and repeatedly submitting identical documents to various financial institutions, FundRego streamlines the process, enabling you to attain the same outcome through a single online application.

Are you ready to take your business to the next level? Apply for Business Loan with FundRego today!

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