Part of the frustration you will face when you are getting a business loan in Singapore is finding a lender that doesn’t think you are a high risk investment. Lenders are concerned with offering money to startups and small businesses that have not been in operation for at least 2 years. This is because a lot of small businesses will fail within the first 2 years of operation and lenders often lose all their money because the business declares bankruptcy.
It will be a challenge to convince a lender to offer you the money you need to get your business started but with a little determination and hard work, getting a business loan will be easy. Here are things you need to know about getting a SME loan Singapore:
Presentation. When you meet with a lender, your presentation as to why you need the loan will play a role in your ability to acquire it. Some lenders only care about your corporate credit rating but others will actually offer a loan if you show up to the meeting well-dressed and with all the documents they need. Make sure you are organized and that you practice some things you would like to say to the lender before you walk into their office. Don’t be nervous, lenders can sense nervousness in a hurry.
Business plan and financial records. A great way to convince a lender to give you a business loan is to provide them with a copy of your business plan. Show the lender that you actually know what you are doing and that you aren’t going away. If they can see that you have done your market research and that you know how to market to your customers, they will consider you for the loan. Financial records also help as they want to see what type of money you are bringing in and if you actually can afford to take on another loan.
Do you have any collateral to secure the loan? Since lenders may be hesitant to offer you the money, try to reduce their risk as much as possible. Providing them with some type of collateral to fall back on will help put their fears at ease and they can easily provide you with the money you need.