Step by Step Guide to Applying for a Business Loan in Singapore

The majority of businesses will often hit a period in their life-cycle when they will need an injection of capital. Whether it’s to finance an expansion, protect the business’ operations during the vulnerable early periods, or to help the business purchase mission-critical plant and equipment, most organisations find themselves looking to broaden their cash flow with a loan.

But how to go about it? If you’re a first-time entrepreneur or you’ve recently stepped into a new industry, you can often find yourself without the financial knowledge necessary to navigate Singapore’s mature and complex financial industry. In this blog, Fast Money helps you better understand what goes into a loan application, and how you can give yours the best chance of success.

The right loan product for the right reasons

Before you even set foot in a bank or a moneylender’s office, you need to understand what you’re looking for and why. Singapore’s financial institutions offer an enormous range of options for business-owners looking for a loan – finding the one that suits you best should be your first objective. Different lenders will have different terms and conditions including maximum loan amounts, interest rates, amount of required collateral (if any), payment terms, repayment requirements and more. Carefully scrutinise a broad selection of products from a diverse range of institutions to find the product most suitable for your needs with the most favourable repayment terms.

Getting your documentation in order

Once you’ve chosen a loan product and a lender, it’s time to prepare your case. A loan application is – at its heart – a process of convincing the lender that you’re a financially responsible entrepreneur with a clear ability to repay the loan. To support your case, you need to bring the right evidence.

Banks and moneylenders will often tell you on their websites what documentation you need to provide as part of the application. As a bare minimum, this includes your latest ACRA business profile and proof that your business has been incorporated for the minimum amount of time required by the lender. You will also need to provide your tenancy agreement, an M&A, and a utilities bill from your place of business.

You may also need to provide proof of a certain amount of local shareholding, and – for certain loans intended for small to medium enterprises – proof that you employ a certain number of employers or turnover a certain amount per annum.

Fast, modern application processes

Once you’ve got your documentation together, it’s time to apply. In the 21st century, this is an extremely streamlined process. You’ll be able to make an enquiry online without setting foot in the lender’s office, communicating your needs ahead of time so you can work out well in advance what loan product you need. Fill in an online form and one of the team members at the moneylender’s office will be in touch to discuss the next step in your application.

To learn how a business loan could help your organisation grow and stay competitive, speak to the loan consultants at Fast Money today.