Guaranteed Start Up Business Loans

Guaranteed Start Up Business Loans – Business & Career 5 Reasons Why SMEs in Singapore Should Consider Getting a Business Loan The best time to get a business loan is when you absolutely don’t need it.

This article was written in collaboration with OCBC Business Banking. All opinions expressed in this article are independent opinions based on our research. is not responsible for any financial loss arising from any transaction and readers are encouraged to do their own due diligence. You can see our full editorial policy here.

Guaranteed Start Up Business Loans

Small business is the lifeblood of many domestic economies. This is no different in Singapore, as SMEs make up 99% of all businesses and employ 70% of our country’s workforce. However, the statistics also show that non-SMEs – including the remaining 1% of enterprises – account for about 57% of Singapore’s gross domestic product (GDP).

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However, we may be bored by the fact that almost every successful business has come from humble beginnings. Most MNC’s started small at some point. In fact, then Trade and Industry Minister Chan Chung Sing urged local SMEs to think of themselves as “Singapore-TMR” with greater ambitions for growth.

To grow your business, you must actively invest your resources, including time and money, into it. However, cash flow alone may not be sufficient to support your expansion plans or may hinder your ability to scale quickly. On that note, raising cash is a viable option to improve your business operations.

While taking out a small to medium business loan may seem familiar and intimidating, here are 5 reasons why business owners may want to consider taking out a loan.

Most business owners should be familiar with the TV series “Shark Tank”. Raising money from investors is one way to finance your expansion plans. However, as you will see in the show, you have to give up part of your company in exchange for financing, especially if you have no leverage in your negotiations (for example, many investors are competing to invest in your company).

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Raising money from investors means bringing new shareholders to your board, and possibly your board directors, who you need to manage and work with. This presents both advantages and disadvantages.

Equity investments are different from loans in that you don’t have to pay interest on the amount you save. However, this does not mean that there is no pressure. In fact, you will have both new and existing shareholders who will hold you accountable for how you spend the money you raise. They need to make sure that you use the money to grow the business because it affects the value of your business shares.

When you increase debt (for example by taking out a small business loan), your operating liabilities increase. However, there is no change in the equity structure of your business and how much of the company you own. Of course, for this benefit, you have a financial obligation to pay both the interest component and the principal component regularly.

As your business grows, you want to strike while the iron is hot. This means two things: a) build your momentum instead of slowing down/slowing down, and b) react quickly to business opportunities as they arise. Doing so often requires a large upfront investment in equipment, property, and/or membership, or cash transfers to purchase inventory or raw materials at discounted prices.

What Is A Loan, How Does It Work, Types, And Tips On Getting One

Getting a business loan from a bank can be one of the fastest ways to raise money. For example, OCBC claims that the application process for a business loan can be completed in less than 5 minutes through MyInfo or MyInfo Business, and approval of the loan amount is given in 1 business day.

Likewise, you may identify a business property that contributes to your expansion plan, or it may simply be part of a plan to locate your business in a location that you own. Whatever your reason, it will be an expensive endeavor. A commercial property loan can provide up to 80% of the purchase price or appraisal of the property. The loan may take up to 72 hours for approval.

There are times when you may want to consider putting your savings into a business. One reason, as discussed above, is when you attach business opportunities. Another reason could be that when a recession hits, like the recent economic collapse of COVID-19 in 2020, business and cash flow may dry up at the same time.

If you put your personal savings into a business, you can create an important financial safety net for you and your family. First, you may not have enough savings to cover personal emergencies, such as a family member falling ill or an accident. In such a scenario, you will have to put up with your currently depleted savings to pay for medical treatment and potential loss of income for a while.

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In 2020, more than 43,000 business entities were closed. While no one wants their business to fail, the unfortunate truth is that these things do happen. And, if this happens to you, you’ll want to use your personal savings to support you and your family until your next opportunity comes.

By getting a business loan, you can handle the same situation, whether it’s facing the wave of expansion or overcoming the uncertainty of a recession, without mixing your personal finances with your business finances. However, it should be noted that for many business loans, they may require a personal guarantee to guarantee the loan, which may require the shareholders of the company to guarantee the loan.

Upgrading and/or repairing your critical equipment will keep it at peak performance. Of course, buying new equipment can improve efficiency or even be part of your expansion plans.

These expenses usually require capital and can affect the cash flow of your business. Fortunately, you can use equipment and vehicle financing to purchase new equipment. For your day-to-day operations, including maintaining existing equipment or simply having enough cash flow to pay rent, supplies, and salaries, you can rely on government SME working capital loans.

Business Loan Application Letter

There are also some special loan options for specific sectors that you can use to set up your business space. For example, OCBC offers medical practice financing for medipreneurs setting up clinics, including renovations, general working capital and acquisitions.

Of course, you can also invest the available funds in your business bank account. However, this adds cash flow risk to your business. For example, a slowdown in your business can lead to an inability to pay wages and short-term liabilities. This can lead to bankruptcy of your business.

For short-term capital requirements, you can use business financing solutions. This can include getting paid faster even if your customers haven’t paid in full (via invoice financing sales) or paying the vendor in advance even if you need a longer payment term (via invoice financing purchases).

Ironically, the best time to get a business loan is when you don’t need it. This is because you will be in a better financial position knowing that you can repay your loan on time every month. Doing so will create a good record for your creditworthiness.

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Even if you’re not expanding aggressively or need a business loan, you can start with less money. This is because terms can be less than ideal when you don’t have a track record.

When you need a loan in the future, there will be no unnecessary delay. This is because you are already familiar with the loan application process. In addition, the bank will also have more confidence in your ability to pay back the loan you request – because your company has a track record of paying back your loans.

A borrower with a higher credit rating is likely to be given a lower interest rate. This is important when you need an urgent loan and you don’t have time to shop.

For businesses that are doing well, taking out a loan for expansion may seem unnecessary. However, seeing competitors take market share or stagnate can be a huge risk to your business. At the same time, taking on too many business loans can easily overwhelm your business and put more pressure on you.

What Is Peer To Peer (p2p) Lending? How It Works

As a business owner, it is your responsibility to chart the course for your SME. To grow, you need to invest. However, most businesses do not have the internal financial resources to finance all of their expansion requirements. Therefore, taking a loan can be the best solution.

Business loans come in many shapes and forms, and as mentioned, the government now backs most of them. You can check out OCBC’s full range of business loan offerings to find out what type of loan you need and how it will help your business succeed.

Enjoy quick access to funds and get your loan approval status instantly when you apply online with OCBC.

Secure up to S$100,000 with OCBC for SMEs within six months of operation

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