Every business needs investment and capital initially to set up in the market. Getting loans are not that easy until you are able to prove your returns to the money lenders. If you are thinking of a start-up and planning to take a loan for investment initially, then the following factors should be considered while taking a business loan.
- Have a well-established plan
Until unless you have a well-established plan, no licensed money lender will trust your repayment of the loan. Thus, it is essential that you have a well-established business plan that can help you get financial support from the money lenders. The thoroughness and the strength of the plan are considered by the lenders before they approve a loan to you.
- Bring your financial matters inorder
While taking a business loan, your personal financial credit report is also taken into consideration. A money lender will check your personal history while evaluating your application for a business loan.
- Make some savings
It is better to make some savings prior to asking for a loan. One should have at least 10% of the loan amount as saving to show his credibility and your plan to contribute the amount to the business. This can also help you as in a way of collateral security.
- Make a list of the collateral securities
Put up a list of all the collateral security options you have. Better security you provide, better the loan amount can be. Thus, while making the loan application, consider your personal financial information to supply as a collateral security is asked https://easycredit.com.sg.
- Get references
The licensed money lenders Singapore tend to ask for a number of references. So be ready with your friends, colleagues and community members. You must create a resume for yourself and list out all the key principles for the new business. A money lender will check your background, financial capacity, character, experience, etc. before the lending loan.
- Get your company registered
A registered company has the highest chances to get loans. In fact, they get the first priority while they apply for business loans. This is because a business registered can be trusted highly as compared to others. Be ready with your registration proof, license, and your business name. It will help you to get loans easily.
- Give information about the intended business activities
Give the entire information about your business workings and operations along with the explanation about where you will invest the loan funds in the business. Show your financial plan, plan of the business set up, business name, information to the financial statements, tax ID number and the use of funds in the business. You may also be asked for additional documentations by the lenders sometimes.
It is highly recommended to stay transparent with the money lender to avoid any future issues and difficulties. If you keep the above tips in mind, getting a business loan in the initial working of the company will become easier and you can get a higher amount of loans.