Hi friends,
In this video we are going to learn about:
How to get a Bank loan for a Business in Singapore? What are the options available?
Singapore has become a prime example of a city filled with a plethora of opportunities. SMEs can
thrive well in this Lion city with some well-planned strategies.
Finding and choosing the best financing for your SME can be challenging. Here, we lay out the
different types of bank loans that you should consider before making a decision to fund your
business.
Business loans is a term that is basically used to describe any kind of loan offered to a company by a
bank. They are offered solely for business purposes, and there are several types in it.
Let us now learn about what is a business loan, temporary bridging loan, SME working capital loan
and start up business loan are:
Business loan is commonly referred to as the standard type of loan in which you need not have to
offer any of your assets as collateral. The maximum allowance for repayment term is up to five
years.
A temporary bridging loan is a government-backed business financing scheme facilitated to aid
businesses over the COVID-19 pandemic. In order to avail this loan, the locals should have at least
30% ownership of a Singapore-registered company.
SME Working Capital Loan is an exclusive type of business loan tailored for local SMEs with a
maximum of 200 employees. Singapore's government is working closely with banks to provide
financing of $1 million for businesses with a repayment term of 1 to 5 years.
Start-up Business Loan can be referred to as the toned-down version of the regular business loan.
The maximum loan amount will be capped to $100,000.
Sadly, The Global Pandemic had turned the tables for all SMEs in Singapore. Even though there are
so many ways to avail Business loans from a Bank in Singapore, Pandemic factor had almost killed
the SMEs in Singapore. Since they are economic back bone for Singapore, the government has
stepped in and filled the gaps that the banks had left to revive the SMEs in Singapore.
Even in the post pandemic times, track record, credit score and business ownership are major
parameters for a Bank to easily sanction loan to a small business. However Singapore government
has given enough support system for SMEs to survive in the pandemic times. The government is in
favour of salaried jobs instead of small business for those who don’t have the enough track record to
withstand the pandemic hit.
So plan well ahead. Have a clear business road map, goals and great mind set before you proceed to
pursue bank loans to start or expand your business. To know more you can either chat with us or
read our Website @ www.moiboo.com
