There are various types of available loans for different purposes. However, when you have a business, you need one that is specialized for your operations, start-up, or other business needs. Oasis Services Credit PTE LTD has some great SME micro loans for businesses.
Whether you are a young entrepreneur or aspiring to have your startup, then you better opt for the SME micro loan. The SME micro loan offered in Oasis Services Credit PTE LTD is great for businesses that want to expand, improve their cash flow, scale or optimize.
If you are not sure of whether to take an SME microloan, read on:
What Is An SME Microloan?
An SME microloan is funds given as short-term financing to help small and medium-sized businesses to prosper. This helps the business to access working capital financing to boost their businesses.
However, before you acquire the business loan, an assessment will be done to see how your business is thriving and whether it requires the extra boost. In most cases, SME loan interest loans are a bit favorable since the main aim is to ensure the business flourishes.
However, when you get an SME loan for your business, try to use it for the right purpose.
The Eligibility Criteria For Getting SME Loans
Certain criteria need to be followed to ensure you acquire an SME loan:
Before you get an SME loan, your revenue will be checked to see how prosperous your business is. Your revenue will also determine how viable you are to paying the SME micro loan. If you have been in operation for over a year, it will be important to know your annual revenue.
If you are just starting your business, that will be another case, and you need to specify when making the application.
2. The Amount Your Business Is Getting
When making an SME microloan application, the legal credit company will also check the amount that you are getting each month. Is the business rising or falling? However, just ensure you have great records that show that your business is thriving well.
3. Working capital
Another determinant of the amount you will get is also based on your working capital. How much money will be enough for your operational and administration costs?
To pay the full SME microloan, the legal moneylender must know how much you are investing in the company and the returns.
4. Company existence
Another thing that is considered is the age of the company. How long has the company been in existence?
This is another huge factor when it comes to SME microloans. In most cases, you need to have been operational for at least 6 months to gain the money lending company’s trust.
5. Credit exposure.
Just the same way your credit score is often checked when you want to get a loan, is the same way your small or medium-sized business credit exposure will be checked. The company needs to have a good credit history and not have pending loans back and forth.
In case the business has some loans, here and there, it can be viable to consider a debt consolidation to settle all the loans and leave just one big loan that you can pay up.
6. Business Information
When getting a small or medium-sized business microloan. It is also important to give some information on the business, how many employees are there, business age, the goals of the business, and other required information.
The more transparent you are, the easier it will be to get the required loan. Therefore, when applying for the loan, try to provide all the required documents to make the process much easier.
Features Of SME Loans
Different money lending companies offer SME loans. Certain SME features are similar in all cases.
1. The Amount of Loan
Basically, in most cases, the loan amount that you can access can be up to $100K. Therefore, as a business, you will need to know how to work with that amount. Therefore, know how you will budget the amount to fit your needs.
2. Interest Rate
Unlike other types of loans that normally have a high-interest rate, the SME interest rate normally ranges between 3.3-4.5% per annum.
However, this is still pre-determinant on the company you get the money from. Some government funds are geared toward SMEs.
3. Repayment period
Just like other types of loans, there is a set repayment period for SME microloans. Based on the size and needs of your business. You can give 1-5 years to pay up the SME micro loan.
However, you can pay at your convenience. If your business thrives faster, then you can consider a faster repayment period.
Where To Apply For SME Micro Loan Financing
Many institutions are ready to offer SME microloans. For example, at times, the government gives loans to businesses to boost the job opportunities and employment status of a country.
Therefore, apart from government financing, there are also credible banks that you can approach to get the required SME microloans. You can also consider financial institutions like Oasis Services Credit PTE LTD to get a reasonable loan.
There is also, P2P crowdfunding which is based on crowdfunding in which funds are pooled from a group of investors and other well-wishers online. The platform s brings together lenders and borrowers in one place
These are some features and ways that you can access an SME micro loan in Singapore. You can make the application when you want to reach a certain milestone in your business.
You just need to seek the best credible credit company that can offer the SME micro loan with a reasonable interest rate. Not only that, but you can get all kinds of loans in your comfort.