If you decide to look for Singapore corporate loan and give the necessary boost to your company to make it grow, it is good that you bear in mind certain aspects before applying for it. According to the global financial experts in SME credit, the lack of access to credit is a limitation to achieve growth in their companies.
Although there is a specific loan offer for small and medium businesses, it is smaller in proportion to the loans of the large and corporate segment. The main obstacles for SMEs are the lack of a financial analysis, a good credit history and strategic plans that prove a real viability so that they can be creditors of the financing.
Calculate the payment capacity of your business –
The payment capacity of a business is the amount of money that comes from sales and income, and that you can use to pay debts without putting the financial health of the entire company at risk. By obtaining the real calculation of what your business can afford to pay off the credit, you can have a more solid basis to make the correct decision about a final offer including the amount and term. It is very easy to carry out the operation to know the payment capacity. You only have to make a total sum of the income you obtain and subtract it from the total of what you allocate to the savings and expenses of your company.
Review and improve the credit –
Through your credit history, financial institutions know your behavior in payments and the level of debt you have, thus analyzing the risk of lending you. The best way to fix your history is to pay off outstanding balances and pay on time. You can rely on a payment plan in which you value your outstanding balances according to the interest they generate and prioritize payments to amortize your debts.
Define the use you will give to credit –
One of the most important aspects for making a decision about applying for Singapore corporate loan, which most small and medium-sized companies face, is a strategic plan that guides the proper use of it. Well, financial experts emphasize that SMEs need to establish themselves with better management and set goals to achieve a good operation. The company must identifies the advantages and set the goals accordingly, for example, expanding sales, opening new business, etc. Also with this analysis you can help you define what quantity you need to order.
Find and compare the credit options that exist –
Once with the clearer picture, start by researching the financial institutions that you can approach to apply for your business credit. Don’t forget to compare the facilities, and loans offered, including interest rate, terms and conditions, offers, minimum-maximum amount, clauses, etc. The respective amount, the interest rates, the CAT and the term in which you must settle the entire financing are crucial when applying for a corporate loan. The recommendation for this aspect is that you choose the offer that suits both the payment capacity of the business, besides the needs for which you are requesting it.