Are you planning for your next business strategy but the only factor inhibiting your progress is the financial aspect? Nowadays, business loans are the go-to for most entrepreneurs in Singapore. Many businesses have achieved incredible success after receiving funds from business loans.
But is taking a business loan in Singapore for your business worth it? This article explains why business loans are just what you need to take your business to the next level.
What is a business loan?
Specifically intended for business purposes, a business loan enables you to access a higher loan quantum to provide financing solutions for your business quickly and easily. Just like any other loan, business loans accumulate interests which must be paid within the contract period through regular repayments.
You can use the funds for any business purposes such as boosting your working capital, finance purchases of equipment, making payment to suppliers or salaries for your staff. Sometimes, you need a boost in your financial resources to strategize and plan for your business growth.
Why you should get a business loan
There are a number of reasons why you should consider taking business loans in Singapore. Some of the common ones are highlighted below.
1. There are lucrative opportunities in Singapore
With one of the highest GDP per capita in Asia, Singapore has a highly developed economy for business. It provides a good opportunity for businessowners to take advantage of this country’s economic status and gain financial success. Businesses can expect to operate in a financial environment that is business-friendly, innovative and competitive. However, without a working capital loan to get started, businesses can find it more challenging to grow and achieve success.
2. The loan options are convenient even for starters
You can find business loans from most legal money lenders in Singapore, with a fast approval loan that disburses instant cash for your business needs. Money lenders also provide reasonably low interest rates and flexible terms, which motivate business customers to cultivate better working relationships with and return for future loans. You can discuss with the lender on the span of your loan tenure that best suits your business. On average, business loans can be repaid within 1-4 years.
3. Business loans make running a business easier
Running a business is always easy when you have enough money to fulfil what you have planned for your business. Besides using a part of the sum to support your daily operations, you can utilize the funds to invest into your business, be it to add more branches, move to a bigger commercial space or increase your workforce. Having enough money also gives you some confidence and boots your zeal to take your business to the next level.
4. There are several types of business loans
With the aim to provide you with the necessary financing, business loans come in various forms depending on your needs. These include:
• Unsecured business term loan: provide cash flow injection with no collateral required
• SME working capital loan: government-assisted scheme to provide funding for SME firms
• SME Micro loan: backed by the government, for companies with 10 employees or less
• Equipment financing: purchase or lease important equipment and machinery critical for their business
• Commercial property loan: for businesses looking to purchase a commercial property of their own
Being undercapitalized can put your business at risk of failing or lack the capability to keep up with the demands of a growing business. Taking a business loan can help you overcome this challenge and secure your business with additional financial support.