Business Loans 101: Must-Know for First Time Business Loans Borrowers
So, here you are in Singapore and you have thought of starting up a business that you eventually hope will flourish.
Starting any business can be very challenging at first, especially if you are doing it for the first time. However, given the right frame of mind, a sound business plan, and a stable financial resource, it is possible to start your business.
Getting a business loan for the first time in Singapore
One probable financial resource is a business loan, which you can secure from banks and financing companies in Singapore. A simple online search will give you a list of a number of financial institutions that offer business loans and various payment schemes.
But, before you file your application for a business loan, you have to be ready to sell your business. That is, you have put a great deal of preparation to ensure that your start-up has a low risk of failing.
It is important, then, to create a business plan that is financially sound. Aside from projecting revenue and estimating costs, observing the behaviour of the Singaporean market is a must. A check on the economic conditions of the sector where your business belongs to will give you a wider and deeper view of the risks you will face once the business is set up.
Other considerations when taking a loan
Financing institutions in Singapore will also look at the capital that your start-up already has when you apply for a business loan for the first time. A high paid-up capital will give banks and other financing companies the notion that shareholders are committed to developing the enterprise.
Meanwhile, a low locked-up capital as reflected by a low inventory of your finished goods will also aid in a higher confidence from financing institutions to award you a business loan.
Apart from a dependable business plan, you also have to come up with scheme to repay the loan. It is sensible to come up with a backup plan on repaying the loan using other sources should your revenue fall short of covering the payment for the entire loan. Keeping Murphy’s Law in mind will probably do you good in the end. Moreover, constantly checking your liabilities will give you a good grasp of how much work, and money, you have to be prepared with.
In securing a business loan in Singapore for the first time, selling your business plan is tantamount to selling yourself. You also have to put premium on your credibility and credit standing. Presenting yourself as a dependable and trustworthy businessman will encourage financing institutions to award you with a business loan.
Obtaining a business loan can be as complex as planning a business. Considering all these factors, however, will ease the process of securing a business loan.
Your Suite Capital loan advisors will be glad to help you find the best packages for you. Get in touch with us today!
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