All That You Need To Know About SME Business Loan

Posted by Rex Katich on November 7th, 2019

SME stands for small and medium-sized enterprises and when we talk about SME finance, it means funding of such enterprises. In this, funds for different types of firms are supplied, acquired, and costed or priced. The capital given is usually in the form of bank loans, overdrafts, equity/corporate bond issues; venture capital or private equity, etc. SME loan Singapore provides a single line of credit for meeting the borrowing needs of small and medium-sized enterprises. The enterprises can further use it as working capital or long-term requirements. Such a loan is approved only after considering the nature of the business, cash flow projections and other peak time requirements. All in all, the eligibility for the loan will totally depend and differs from lender to lender.

Let’s Talk About Security

Security or collateral is something the lender insists upon including hypothecation of assets of the enterprise. In certain cases, the personal guarantees of all promoters / Directors / Partners might be required, which again totally depends up on the amount of the loan. If you are exceeding the SME business loan Singapore amount, then you might need to give third party guarantee.

The enterprises who are applying for SME loan through Non-Banking Financial Institutions like Mortgage Consultancy can easily access loans up to S0K and might not need to pledge any collateral as a form of security.

Here are some other features of SME Loans

• You get it through easy repayment options
• Many lenders provide flexible tenure, which ranges from 12 months to 48 months
• Interest rates are quite attractive and are applicable to the creditworthiness of the borrower
• You have the advantage of flexible documentation
• Your working capital loan Singapore will also be done under quick processing.

If you are worried about the paperwork or the whole SME loan applying process, there is an easy way out. You can hire a professional and seasoned SME broker Singapore to guide as well as help you out. As the broker is in this industry for a long time, he/she understands the entire process much better than a layman. They possess the right skills, expertise and knowledge to undertake this task and get you the loan at the earliest. They of course will charge a small fee but that would totally be worth it because with them you will enjoy a hassle-free experience. From documentation to loan application, everything will be well taken care of. In case, you are in need of expert advice that will also be provided to ensure that you have no doubts later on. But that’s not it! You will also get after-sale service in every 2 to 4 years to review your business loan portfolio.