Financial aids that come with an extended period pay-off option are termed long-term loans. Usually, these loans are granted to small-medium size businesses to support their venture financially. As you are pacing towards expansion, you need urgent allocation of resources to hasten your scalability. In such circumstances, you can take long-term business loans for filling capital gaps and purchasing commercial properties. If you are planning to finance your business, then this article is for you. We help you navigate all crucial aspects of long term loan Singapore.
Difference between government-assisted loans and business term loans
Government-assisted loans
Government-assisted long term loan Singapore Introduced in 2020, this new financial scheme intends to support businesses amidst the pandemic. Enterprise Singapore and participating financial institutions conjointly regulate this loan, as the risk factor involved is more than 90%. To benefit from it, the governing bodies assess your overall business performance, personal credit records, and financial records. Generally, government-assisted loans get divided into 3 –
- Enterprise Financing Scheme comes with a maximum amount of $1 million. It falls under the category of SMEs and has severe state capital risks.
- Enterprise financing scheme is a trading financial aid that provides assistance of $10 million.
- Temporary bridging loan programs have a threshold of $5 million and also possess increased governmental risks of 90%
Unsecured business term loans
Business loans are unsecured loans that do not require any collateral to back them. Thus it is offered by banks and financial institutions based on your business cash flows and profits. This long term loan in Singapore gives higher flexibility than strenuous state-assisted loans. Hence, SMEs widely prefer these and can be employed to pay off your payroll or inventory acquisitions.
| Loan threshold | $500,000 |
| Loan tenure | 1 to 5 years |
| Interest rate | 7 -12% per year |
| Processing fee | 1 – 5% of the approved loan amount |
These can vary according to different facilitators, and some might change your tenure or loan amount. The interest rates are fixed and are similar to your regular bank repayment schedule. You generally have to repay the principal + interest. Nevertheless, in certain cases, you also will be charged with interest servicing only + bullet reimbursements. Remember to choose a plan that you can pay without hardships and something that suits your needs.
How to file an application for long-term loans in Singapore?
If you need to apply for business term loans, then you can use this guide to make the process easy;
- Apply offline or online – Usually, there are two ways to approach the loans – the online and offline process. If you need faster processing and a convenient way of application, then it is ideal for applying through a licensed moneylender website. However, for Swiffer’s completion, make sure you got all the documentation and records intact. Apart from this, you can also visit your branch and choose a plan that gives more significant advantages. While submitting the business records, assure that you have covered a more extended timeframe and included documents indicating your financial records, bank statements, and GST declaration.
Documents needed for long-term loans in Singapore are:
- ACRA business profile
- Recent NOA of all directors
- Recent credit history of all directors
- Your entity’s financial statements for the last 2 years
- Last 6 months of corporate bank statements
- List of other bank facilities
- Business inquiry – Once you submit these records, your bank will contact you to request further information. This time, they will inquire regarding your venture and your business features. You can also inform the lending institution about any pending loans or your previous financial liabilities.
- Submission for approval – Once you are verified, the Relationship Manager (RM) will hand over your documents for approval. They will also propose different long term loans Singapore plans that will meet your business requirements.
- Sign the documents – The final process is signing the documents. Before proceeding, you need to double-check your information and assess the interest rate and penalties. Once signed, you will have your funds within a few hours.
Eligibility criteria for long term loans Singapore
The eligibility requirements vary from a financial institution to institution. Typically, your business should be incorporated into Singapore and should have at least 2 years of maturity. Additionally, it should have a minimum revenue of $300,000. Your business should also have Singaporean shares of at least 30% to qualify for the loan.
Find the best long term loans in Singapore with Oasis Credit!
It is necessary to amplify your finances to enhance your sustainable growth. Hence, taking a long-term loan will reduce your financial burden and extend your brackets. Oasis credit is a reliable financial facilitator with attractive as well as beneficial packages. It is a licensed destination that guarantees a convenient and faster loan approval process. We help you land on the best packages and make the repayment flexible to suit your comfort. We understand your emergency business needs and provide the best long term loans in Singapore to make the process effortless and painless. Contact us to know more!