For someone who is running an enterprise, SME Loans are very important. The small and medium enterprises are one of the biggest sectors and they also generate income for quite a large group of people. For this SME sector to thrive, an SME loan is offered. If your business is suffering from a financial crunch, this loan can help you to overcome it. But for that, you must also have a proper knowledge of every aspect of SME loans and how they work. That is why we have created a crash course for anyone who is planning to take an SME loan.
SME Loan Process
If you want your business to survive the tough economic environment of Singapore, an SME loan can be of great help. That is why the loan process has been made simplified and all you need is a few basic documents to get your loan sanctioned.
Banks have a loan and laborious loan process which might not even grant you the loan in the end, but with Oasis Credit, you will be introduced to a very simplified approach.
The details required for the loan application are listed below –
- Your business’s past 6 months bank statement
- The business directors’ or owners’ NRIC copies
- The latest ACRA printout
- Statements of income tax
- Proof of tenancy for your business premises
- P&L statement
- Proof of title deeds and assets
When you submit all these documents, they will be verified and upon completion of the process, your loan application will be accepted.
How can SME loans help your business?
There are various ways in which an SME loan can help your business prosper.
Read on to find out about them.
- Expand your business – If you are planning to expand your enterprise by opening new branches or outlets, you will be needing a considerable amount of investment and this can be fulfilled by taking an SME loan. Opening a new store comes means that you will have to hire new employees, invest in infrastructure and also buy new stock. Taking a loan will help you overcome all the costs in a stress-free manner.
- Get advanced technology – The business world in Singapore is becoming technologically advanced with each passing day and if you have to keep up with the competition, you will need up-to-date technology. You have to update your logistics as well if you do not want to fall behind in the race to success. Getting a small loan will help you buy all the latest equipment you need.
- Give emphasis on marketing – With Singapore becoming tech-savvy, a proper marketing strategy has become more important than ever. This would involve everything from product design to branding. Getting a loan, will help you give a boost to your marketing strategies.
- Start Recruitment – In the initial years of business, the costs are all kept to a minimum by recruiting as less as possible. But with time, you will have to recruit more employees in order to make the business more efficient and thus, increase your revenue.
There are several companies in Singapore who are ready to give you an SME loan to suit your needs.
But you must check these factors before you finally settle for one company –
- Credit Criteria – Not every company has flexible rules when it comes to approval of an SME loan. Some may impose very stringent laws. So, you must always check the credit criteria of a company. Your credit score will play a very important role as it denotes your ability and record of repayment. But there are some companies who will listen to your business strategies and ideas and then take your credit score into account.
- Interest Rates – Every company has a different rate of interest and you must always choose the one that aligns with your affordability. Some companies have a fixed rate while others are flexible.
- Presence of flexible monthly payments option – When you are operating a business, you have several costs to incur and pay on a monthly basis. So, when you take an SME loan and have to repay the amount on a monthly basis, you need to make sure the company gives you a flexible option so that you can pay back without any strain on your business.
- Choose the loan term wisely – The loan term plays an important role because if you choose a lesser term, you will be paying lesser interest too. So, weigh out all factors and decide how much amount you can pay on a monthly basis and then fix the loan term wisely.
- Look out for hidden charges – Always ask for the total amount that you will have to pay including all the charges for processing the loan.
- Read all the terms and conditions – Every company will pose you with certain terms and conditions in their agreement that you have to sign. But you need to read it thoroughly before agreeing to it so that you know what you are signing up for.
We, at Oasis Credit, have a very easy application process and if you have all the documents intact, then you might even get an immediate disbursement of cash. We know that every business has its own needs and so our team will discuss at length about the requirements you have. Then, we will give you a personalized SME loan scheme to cater to all your requirements.
Our loan products are designed for the ease of our clients and we provide much lower interest rates too so that you can pay back the amount without any stress on your business. We know what time means to you and we give importance to our clients’ urgency. In case you have any problem or queries regarding our loan process, you can contact our customer service department today and they will explain to you everything you want to know. So, if your business needs some extra funds, contact us today and we will grant you a loan within a minimal time frame.