All You Need to Know About Small Business Loans in Singapore
Singapore is a hub of business. The government helps small business people to grow their business with grants and business, loans. Most small businesses consider borrowing money to extend their operations and reach new customers until they have more income.
Depending on the sector in which your company operates, you may need more funding to get off the ground than you can get from family and friends.
Borrowing money is one of many options open to a company to meet its requirements for working capital. Small business loan Singapore banks offer is a means of acquiring the funds you require if your company needs a sizable investment, such as inventory or equipment.
Options for Business Loans in Singapore
Any loan provided to an organization for business purposes is known as a “business loan.” There are actually many different kinds of business loans. Some are available for the needs of your business, such as managing cash flow or fostering growth, while other loans help meet some needs like replacing machines and equipment, expanding operations, or even starting specific kinds of businesses (startup). A few popular loan types are:
- Business Loans
- SME Working Capital Loans
- Temporary Bridging Loans
- Startup Business Loans
How Do I Make a Loan Application for a Business?
- Send in your loan application for a business: You can apply for a loan using ‘MyInfo Business’ or ACRA, which enables the lending bank to find the required financial records for your company. Public accountants, corporate service providers, and business entities are all under the regulation of Singapore’s Accounting and Corporate Regulatory Authority, or ACRA.
You might be required to submit some extra paperwork, such as your company’s most recent financial statements and the past three months’ bank statements.
- Tell your guarantors: Business loans require guarantors between 21 and 62 years of ages. They must also have a minimum income as specified by the lending bank. A permanent resident of Singapore must be one of the guarantors. They must sign off on your loan application for a new business.
- Application submission and tracking: You must submit your completed application with the required supporting files online for approval. For instance, DBS Bank’s business banking app, DBS IDEAL, enables you to monitor the progress of your loan application form.
- Get the offer and review it. If your request is approved, you will get a business loan offer. After evaluating the offer, you can accept it.
- Wait for confirmation: The bank will send you a notification after the disbursement of the loan amount.
Business Loan Eligibility Requirements
- Your SME company need to be enrolled in Singapore and have been established for at least six months.
- A Singaporean or resident owns at least 30% of the company’s shares.
- Your company should have 10 or fewer employees and a yearly revenue of less than SGD 1 million.
- You need guarantors, one of whom must be a Singaporean or Singaporean resident.
With the help of small business loan Singapore, your Singaporean small business now has fast access to money to cover its ongoing operating costs. When applying for a loan, you should have your business plan explaining how your company will succeed ready and the business loan application itself.
