A lot of small and big business owners would agree to the age-old saying “You need money to make money.” Up until today, this is a saying that still rings true because there are still aspiring entrepreneurs in Singapore who are having a difficult time establishing their business in the country. You might be one of them. If so, you clicked the right article! Many resources could give you the financial assistance that you need. Whether getting your trusted bank to help you or reaching out to your friends and family, you have to approach the best option. If you want to reach that best option, you should be ready for the overwhelming challenges that may befall you, especially when you are thinking about seeking the help of the best money lender in Singapore.
As a business owner, it is in your nature to make rational decisions. You take on things on a rational and strategic level. It is a promising approach since it will help you think about your decision’s long-term effect.
In this article, you will find the Dos and Don’ts of getting financial support from moneylenders in Singapore.
Dos of Approaching Moneylenders
In one hit of that enter button in a search engine, you will be flooded with moneylenders from SG and moneylenders from foreign countries. Surely, you will get overwhelmed by this, but you have to keep yourself focused on finding the right one. Let these pointers help you out.
- DO a business assessment
Before applying for a business loan, you must have a total comprehension of your business’ condition. It includes your cash flow, your income prediction, and your business plans. Doing this, you could give your moneylender an accurate picture of your business today and in the future.
If you have the budget, you may consider getting an appraisal to make your assessment accurate. However, some online lenders offer a business calculator to give you an idea of how much your monthly repayment could be, including interest and fees.
- DO a careful research
There are seasons when profits are high, or when you have high demand from your customers. Even with this, do not get confident that any money lender will reach their hand out to you. It is still crucial that you research carefully about the loaning options that they could offer you. There are loans made especially for SMEs and there are grants by the government that you could also take advantage of.
The research will also help you in checking the legitimacy of a legal money lender in Singapore. To ensure that who you approach is legitimate, take a look at their website and talk to them about the application process. Remember that a guaranteed business loan is a guaranteed scam!
- DO only borrow what you need
There is no room for guesses when it comes to borrowing money. You need to prepare a full review of your projected costs and revenue, and some lenders prefer when you include your positive and negative predictions. Remember that too much money can leave you with debt that you would be paying for the rest of your life, but lowering your figures could put you at a cash crunch.
These are the essential DOs that you must remember. No matter how busy you are with your business or businesses, you must not stay complacent when it comes to tracking your financial records. Keep tracking your numbers because it would affect your future if you want to approach more moneylenders in SG.
Don’ts of Approaching Moneylenders
Of course, if there are things you could do, there are also things that you should not do when it comes to getting business loans in Singapore. This part of the article will help you in avoiding the things that will get you away from a successful money-lending deal.
- DON’T spend your loan money on prohibited things
Loans have restrictions on what you can and cannot spend using it. It only covers general business purposes and it does not include what can be seen as a personal purchase. For instance, asset finance can only be used to purchase an asset, such as equipment for the office or a business transport vehicle. When you meet with a legal moneylender, they will give you a short description of how you must spend the money you borrowed from them.
- DON’T focus on interest rates
Yes, interest rates are an important aspect of money lending, but there are other components of the loan that you must also consider. Something to think about are the flexibility of the period of repayments, the willingness of the lender to finance you and the guarantee that their deal is workable.
- DON’T forget your elevator pitch
You will be presenting yourself as a reliable receiver of a huge amount of money, so you must put your best foot forward! Gather all your track records, your five-year plan, the state of your business, among many other things that they may ask of you. It is better to serve them what they are looking for in one go than prolonging their curiosity, which could lead them to doubt you.
You would be putting your business at risk when you take out more than one loan at a time, and you settle with unsecured loan options from alternative lenders. No security means your business will always be at risk, thus you must remember these pointers!
Searching for the Right Moneylender with TT Media
There are many different kinds of money lenders in SG since many moneylenders are into supporting small businesses as well. People at TT Media support both parties, and want to make the processes of money lending easier!
You may find their trusted list of moneylenders on their website today!