Borrowing is very sensitive and requires a sober mind and keen consideration before settling on the lender and the type of loan to apply for.
There are different types of loans that you can apply for in Singapore, but for the purpose of this article, we are going to look at the guide to sme micro loans in Singapore.
What is an SME microloan?
This is a loan that is meant to cater to the financial needs of Small and Medium Enterprise (SME)
There are a thousand lenders in Singapore and before choosing one, you must consider the following;
- The legitimacy of the lender
- Loan interest rate
- Loan application fee
- Documentation
- Approval rates
- Turnaround time
This is important because your choice of financing can have a big impact on the future of your business.
Check out our guide here to help you navigate through your financial journey.
Finding capital to finance business growth is the biggest challenge facing small business enterprises today. However, technology has made things easy by availing an easier option from the traditional mode of lending.
Here are the two most common options of financing that you can explore:
Traditional Financing
There are various loans that you can apply for under traditional financing. They include but are not limited to
- Bank Term Loan
- Bank Line of Credit
- Merchant Cash Advance
- Factoring
- Equipment Financing
Online Financing
This is a result of improvements in technology. Initially, loans were only accessible from banks, but with the rapid growth in the finance industry, now you can access a loan facility online.
Online lending tends to have simple processes and a very quick turnaround time. It involves less paperwork and does not usually require high-value collateral.
Here are samples of online financing
- Online Term Loan
- Online Line of Credit
- Crowdfunding
- Loan Matching Site
Basic Requirements
Here are the basic requirements when applying for an SME loan
Understanding the terms
Before proceeding with any sme micro loan application, you should have answers to the following questions:
Why am I borrowing a sme micro loan?
How quickly do I need the money?
What is my credit rating?
Questions to ask the lender
Is the company registered and if yes where is the license?
What are the minimum requirements for a sme micro loan?
What is the application process like and what does it entail?
What are the terms and conditions of the loan?
What happens in the event of default?
Once you have answered all these questions, you can apply for the loan that best suits your needs.
If you want a hassle-free process, look up Oasis Credit and have all your financial needs looked into.
Why choose us?
We are licensed money lenders operating in Singapore
We offer the most competitive interest rates in the market
We offer high loan approval rates
We offer customized loans
We offer a quick turnaround time