The presence of several moneylenders has created a pool of big opportunities to grow your business in Singapore by taking out a business loan. However, don’t stick to only one financial organization. It is always better to approach multiple licensed moneylenders and check what they have to offer. Here are some more tips to enhance your chance of getting your business loan application approved.
1. Compare and shop
It is not necessary to take your business loan from the bank where you have your existing savings or business account. Don’t get frustrated if some moneylenders reject your loan application. Even if a moneylender accepts your proposal, don’t stop approaching and checking the interest rates with other financial institutions. Remember, it’s an obvious fact that the amount will have to be paid back with interest at an agreed rate; hence you should make sure you’re settling for the lowest interest rate and the most transparent terms and conditions.
2. Take steps to improve your credit rating
When a licensed money lender reviews you loan application, they mainly want to check your credit rating and the amount of risks involved in you venture. If their evaluation shows your business is risky or has very less chance of getting enough return on investment (ROI), your chance of getting a loan is very less. Hence, take steps to improve your credit rating. For instance, do what’s necessary to increase your revenue earnings and pay your existing EMIs on time.
3. Show your assets but don’t pledge your collateral
Before approving your loan, a bank or moneylender may want to know what tangible assets you have. For instance, you may have a car and home, etc. Lenders want to see whether you have the capability to pay back the loan amount by selling off your personal assets, should your business fails. While you can disclose your assets to the lender, it is never a good idea to mortgage your assets for getting a loan.