Starting up your own company and enterprise is the new trend these days. Although, running a business is not an easy task and requires effort and a lot of money. There, to crank your business out, you will need to set up your business firmly. The truth may sting you a little, but only a strong finance business back will make it.
No Worries, We Are Here With You!
However, it would help if you were not disheartened as we have come up with the idea to help you. The government of Singapore has come up with this quick small business loan scheme named SME Loan. In this article, you will get to know about SME loans and everything in detail about it. So without any further ado, let us take a glance.
What Is An SME Loan?
SME Loan is an abbreviation for small-medium enterprises loan. An easy SME Loan in Singapore is slightly different than other loans, and it is specially designed for small business owners and enterprises. The motto of small-medium enterprise loans is to determine small enterprises grow and earn profits from their work. Even if their invested capital is less, it is just the same because of an easy SME loan as a backdrop. If you take an SME loan, you are bound to pay installments at a fixed period in a certain amount.
What Are The Eligibilities Of Taking An SME Loan?
Yes, an SME loan might be easy to apply for. However, there are some specific eligibility criteria you must have why you opt for an SME loan in Singapore. We have listed down eligibility criteria point-wise so that it becomes easier for you.
- Your company must be registered under the Singapore government. This step is done to make your business company official.
- You will not get a small-medium enterprises loan unless thirty-five percent of the share is held by Singapore citizenship.
- The number of shareholders must not exceed two hundred people.
What Are The Advantages Of An SME Loan?
An SME Loan is a boon for small enterprises. It would help if you acknowledged it at the right time to churn your business. If we take into consideration its positive sides, SME Loan would have a plethora of advantages. Let us look at the following points to comprehend it.
- A SME Loan not only helps you to initiate your business but will help you throughout your journey when you need any financial assistance.
- Loans of SMEs are comparatively low than other market loans.
- A SME loan helps you strategise your business and make it more accessible and profitable.
- Moreover, SME loan is a government’s policy, and hence there is no debate about it, enduring your loss even if it is not doing well in its business.
- It reckons upon you that what loan you want. For instance, you may apply for a micro SME loan or opt for any long or short-term loans.
How To Make Your Small-Medium Enterprises’ Loan Valid?
There are many instances where people have had applied for a small-medium enterprises loan, but it eventually got rejected. If you want to sum up, applying for an SME loan is a little precarious. However, we are here to help you, and we will assist you regarding this. We have listed down few points which would make your reasons strong enough to get your small-medium enterprises loan cinched.
- Try to make sure that your company has been established for at least one year. Although, the period is subjective for a different purpose. For instance, the reason why you are availing of this loan mandates a different specific period.
- The small-medium enterprise’s loan authorities will most likely ask for proof in the form of the company’s profit and loss statistics. It is because they want to cross-check your company. Even though you have gone through a loss lately, and apparently because of which you are seeking an SME loan. They will check if you have made profits in your last financial years, excluding the sheer loss years.
- The third point is one of the essential points. Suppose you already have a burden of any other loan or loans. There is a high probability that the authority would not provide you with a small middle enterprises loan. Therefore, please clear all your existing loans and then apply for an SME loan.
- It is evident that loan lenders have their vision to see your company. If, for some reason, they do not find your company service or business demanding according to the ongoing trend. They might cancel your SME loan.
- You should make your company’s official bank account. Any other account should not supersede it in any way. To sum up, the company should have no personal link to any of the company’s members.
- The nominee or the company director should have something to submit order personal income should be stable enough.
How To Apply For A Small-Medium Enterprises Loan?
Now comes the main task, which is applying for an SME loan. The first step is to write and send an application to the loan lender. Once they accept your loan proposal, your work is almost done. At this time, you will have to perform all the formalities. For instance, submit your id proof, all the documents, and stuff. After the final approval, the authority will call you for a meeting. In the meeting, they will discuss all other essential factors which need to enquire. Consequently, you are approved for a small-medium enterprises loan.
Please do not give it a second thought. Go and apply for a small-medium enterprises loan. Keep all the documents and important papers with yourself. See if it is arrayed because it might create a buzz at the end moment. We hope your business would excel in the field with all these detailed analyses.