Apply For A Quick And Affordable Business Loan And Bring Your Business To Greater Heights
As a business owner, you’ll know how important it is to stay relevant and competitive in your field. You might be thinking of growing your business, expanding it, purchase new inventory or to handle unexpected expenses and emergencies.
Oftentimes, this requires a large sum of money and you’ll probably require it as soon as possible. Traditional financial institutions are usually unable to approve and disburse the loan fast enough. This is where a business loan from U Credit can prove to be incredibly helpful.
A business loan with U Credit opens up opportunities for you if you are expanding operations, purchasing inventory, hiring, buying equipment or need to take care of any other large expenditure. Our business loans are unsecured and can be tailored to meet your company’s specific needs.
Here Are 7 Different Types Of Singapore Business Loans
A business loan is a credit facility used to fund expenses relating to the operations and expansion of the company.
There are several different types of business loans in Singapore, and some of these are listed below:
1. Business Term Loans
The amount issued for business term loans usually ranges between $1,000 and $100,000. This type of loan often is unsecured and can be utilised for various purposes within the business.
Business term loans usually have a loan term of 5 years, and lending institutions which issue this type of business loan in Singapore require the borrower to have a good credit rating. If you choose to take out this type of loan, you will need to make sure that the returns that you get from investing this money are higher than the cost of the loan.
2. Trade Financing Loans
Trade financing loans are another type of business loan that is available in Singapore. A trade financing loan will come in handy when your business needs funds to purchase materials and inventories for production. Many suppliers will require some assurance of payment before they supply the materials.
3. Microloans For SMEs
This is a government assisted business loan specifically for SMEs which have a revenue of less than $1,000,000 per year. Many traditional financial institutions hesitate to issue loans to SMEs because they consider them to be high risk. However, U Credit offers these microloans to small businesses to help them to stabilise as they start-up and seek to grow. Your business will benefit from this type of credit at the initial stages of investment.
4. Property Loans For Organisations
If you need to acquire some premises for commercial use, then a property business loan will be ideal for you. This type of business loan is a mortgage that you can use to finance the purchase of the property that you plan to use for your business operations.
5. Working Capital Loans For SMEs
Many small and medium-sized businesses tend to have cash flow problems from time to time. Funding may be required to finance the operating expenses of your business during seasons of low-income, and it is during such times that the working capital loan for SMEs will come in handy.
With this type of loan, you will be able to borrow up to a maximum of $300,000, and this will help to keep your business afloat as you strive to bring your income levels back to normal.
6. Equipment Loans
An equipment loan will be useful to your business if you need to purchase some equipment for your operations or upgrade your existing machines to improve the production levels. If you choose to take out an equipment loan, you’ll need to ensure that the new equipment will generate enough income to justify the cost of paying off the credit.
7. Invoice Financing
There are many instances where your business could have a cash crunch directly because your debtors are not paying you on time. The invoice financing loan will be beneficial to you if you have a substantial amount of cash held by current debtors.
The lender will issue a loan amount which is a significant percentage of the total amount owed by your debtors. In some cases, the lender may also choose to collect the cash owed on the outstanding invoices. An invoice financing business loan will enable you to continue with the operations of your business even when your debtors have delayed in making payments.
What Are The Benefits Of Business Loans Singapore?
Each of the aforementioned business loans has specific advantages. The particular need for your business will determine the type of loan that you choose to take. Once you decide on the business loan that is most suitable for you, there are several ways in which your business will benefit. Some of these are listed below.
1. Expansion Of Your Business
If you wish to expand your business to a new location to take advantage of a more extensive clientele base, then a business loan will help you to do this. You will be able to boost your revenues and grow your business to new levels. Your increase in income will also enable you to make your loan repayments punctually.
2. Easing Of Cash Flow Problems
The revenue received from your business may tend to fluctuate at certain times, and this may cause cash-flow problems during seasons of low income.
Consequently, it may become difficult for you to continue paying your operating expenses which include salaries and rent for the business. A working capital loan will help to ease this cash crunch during the seasons when your sales levels are meagre. You will be able to continue normal operations as a business as you wait for your income levels to improve.
3. Liquidation Of Debtors
Your business could be experiencing significant challenges when it comes to collecting amounts owed from your debtors. Taking an invoice financing loan will help you to solve this problem. The delay of payments from your debtors will not hinder the operations of your business.
Unforeseen tragedies or emergencies could arise at any time in your business. These could include instances such as a fire at the business premises or the sudden breakdown of a vital production machine. These emergencies could end up having a lasting negative impact on the operations of the business. In such times a business loan will come in handy to keep the business running as you handle the crisis.
5. Taking Up New Opportunities
You may get an offer to take up a profitable business opportunity, but you may not have the funds needed for it. For example, your leading supplier could offer to sell you a large amount of stock at half of the regular price. It will allow you to double your revenues within a short time, but you will need some capital on hand to make this large purchase. A business loan will help you to take up this opportunity and generate some extra profits.
6. Building Of Credit Score
If you need to build your credit score as a business, then taking up a business loan could help you to achieve this. However, you must be careful to make all your loan repayments punctually once you take up the loan. It will help you to build up a good credit rating, and you will be able to get access to more significant amounts of credit in the future.
Business Loan Myths in Singapore Busted
If you are in the market shopping for a business loan, you have most likely stumbled on lots of inaccurate information. Below are just a few of these myths which might be preventing you from accessing funding for your business:
Banks have the final word – Gone are the days when your bank was the only source of credit. U Credit offers our customers with competitive interest rates and most importantly, our application process is less stressful and much faster.
Large businesses have an advantage – This is a myth that has hindered many small businesses from growing. Moneylenders in the country are open to dealing with any kind of business as long as you have good cash flow and the ability to repay the loan.
All moneylenders are scammers – You can expect bad apples in every industry, and the money lending industry in Singapore is no different. You should only work with a licensed moneylender with a solid track record in lending to businesses, like us.
Small businesses can’t get funding – You shouldn’t lose out on opportunities just because your company is small. As long your company is opened for at least 2 years, U Credit offers tailored loan packages to suit your unique needs.
You need to have a perfect credit score – While banks focus on credit scores, private lenders are interested in funding anyone who has the ability to repay the loan.
Apply For A Simple And Fuss Free Business Loan With U Credit
Interested in taking out a loan with U Credit or wish to find out more about our business loans? Time is of the essence. Compared to banks and other traditional financial institutions which have a tedious and long approval process, the loan process for our business loans is quick and simple.
Talk to us today or simply apply for a loan here if you are looking for an affordable Singapore business loan. Our consultants will be more than happy to answer any questions you might have on business funding!