Borrowing decision is a very sensitive decision 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 loan in Singapore.

What is an SME micro loan?

This is a loan that is meant to cater for the financial needs of Small and Medium Enterprise (SME)

There are a thousand lenders in Singapore and before choosing one, it is important that you put the following into consideration;

  • 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 in most cases does not 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 requirement 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 an 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 an 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 answers to all these questions, now you can go ahead and apply for the loan you find best for 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