If you are the owner of a business in Singapore, at some point, you might need to finance your own business. There are various business loans in Singapore that are offered to local business owners to help in expanding their businesses. These loans are typically used for addressing business needs – such as financing inventory purchases, renting, or purchasing commercial property.
There are different types of businesses and loans in Singapore that can help your business expand or even get out of a rut. In this guide, you will be able to know how to apply for a loan and get instant loan approval in Singapore. However, there is a process and several criteria to be met before being able to receive the business loan. Therefore, read on for a step-by-step guide on the procedure that you have to go through before your business loan application is approved.
How the application process goes
Where to apply for a business loan
A business loan can be applied in two ways. Firstly, it can be applied through a financial institution, moneylender, private lender or a family office. Alternatively, banks also provide an online application for you to apply for the loan. If you are applying for your business loan online, you can fill out your online application by logging in using your Myinfo login and NRIC.
Call up your financial institution first
The relationship manager at the bank or financial institution has to know more about your company or business before being able to help you approve the loan. For example, it is essential that they are aware of your company’s directors, industry and business type.
At the same time, it is also vital to know the financial situation of your company. This allows the relationship manager to assist your business if you are experiencing any financial issues like an outstanding loan or debt.
The required documents
To receive your loan, five main documents have to be submitted and verified. In some cases, some financial institutions might request for extra documents like upcoming contracts to have a better understanding of your company’s situation.
A call back by the financial institution
After submitting your documents and details, you will receive a call back from the financial institution. This is when you know that your documents have been successfully received.
Process for approval
Upon receiving the essential documents, the relationship manager then submits it for approval. All you have to do is is wait patiently for an update on the approval.
Business loan proposal presentation
Upon receiving the approval, a relationship manager who is handling your business loan case will come up with proposals as well as solutions regarding your business needs and then hand it over to you.
Site visit
In certain cases, the relationship manager may insist on visiting the site of your business or the premises where it is situated. This is solely for the purposes of understanding the operational systems and processes of your business.
Signing documents
Upon the site visit, you are close to receiving the business loan. All that is left is for you to sign the loan agreement documents. Before putting any signature on the documents, it is critical that you look through key factors in the document like the amount of loan, the interest rate, rate type, defaults and penalties.
Disbursement of money
The final stage is the disbursement of funds. This usually happens in the form of FAST disbursements to a corporate bank account.
Required documents when applying for a business loan
Before applying for a business loan in Singapore, it is necessary to have the correct documents in order to receive the right business loan. There are basically five documents that you need:
- ACRA Business profile Information which shows your business profile information.
- Current 2 Years Notice of Assessment (NOA) of all Directors for the purpose of knowing declared incomes.
- Report of all most recent Credit Bureau Singapore (CBS) directors. This is to help financiers view the business’s repayment histories, current loan and any outstanding unsecured loan.
- Recent 2 Years Company’s Financial Statements. This is to understand the company’s performance history. The may require current 2 years profit and loss statements as well as balance sheets.
- Most recent 6 months Bank Statements to understand company’s daily bank account proceedings.
During the process of the loan approval getting approved, you might need to present evidence like the Accounts Receivables Aging List to your relationship manager. Understanding and adhering to these guidelines should ensure that you are susceptible to fast approval loans in Singapore.