Top Reasons You Might Need a Payday Loan

A payday loan is probably the easiest way to get over an unforeseen financial emergency. Unlike major loans, they do not involve staking your home or vehicle as a mortgage. They do not even involve monumental interest rates like in the case of personal loans.

The best thing of all is that they are incredibly easy to get from a licensed moneylender. One just needs to write a post-dated check for the amount borrowed. Check out some reasons why you might need a payday loan.

For emergency car repairs

Car breakdowns can be rather abrupt. If your car suddenly breaks down, it could not only leave you staring at a few hundred dollars of repair, but pile up car rental charges. If it is a minor damage or glitch, it needs to be repaired right away. A payday loan can be had easily and can help you repair your car in time and avoid lost wages and exorbitant car rental expenses.

Urgent medical expenses

Compared to 2015, the SCDF received 7.4% more emergency medical services calls in 2016. With 80% of primary healthcare provided by private facilities in Singapore, healthcare is costly in Singapore. Payday loans can also be used to pay for an emergency surgery or for emergency treatment post an accident.

House repairs

You could wake up one day to find that your plumbing requires emergency repair. With sewage water filling up your house quickly, there isn’t much time before you get a plumbing company. You may also need to winterize your home. Simply get a payday loan and make the repairs in time.

Pending bills/installments

Credit card debt is a worrying situation in Singapore today. If you’ve maxed out your cards, getting a payday loan from a licensed moneylender can help. If you are self-employed, a low income month could mean missing out an installment or your monthly telephone bill. Do not break your emergency fund and simply apply for a payday loan.

Unforeseen travel expenses

It often happens that a relative or a close friend is unwell and you are required to be by their side. Making travel arrangements at the last moment can be tough, especially when you have run out of funds. Payday loans are approved within a few hours, and do not require a good credit rating.

Paying overdraft charges

Writing checks of a higher value than you have money in your savings account can result in overdraft fees. Paying this value back at the earliest is highly important. Banks usually charge a certain fees after an initial period, and they compound on a daily basis. Apply for a payday loan and get the fees cleared and avoiding further complications.

Funeral expenses

Bereavement is an extremely testing phase. However, with no financial planning, you will be worse off if there’s an unexpected death in the family. Let a payday loan take care of that, since moneylenders ask no questions about the use of the money. They also offer flexible terms of repayment.

from Financial Directory Singapore

via Financial Directory Singapore


5 Tips to Learn before Getting a Personal Loan

Personal loans are very different from other forms of credit, like housing or vehicle loans. They do not require pledging collateral, and for that reason, have higher interest rates as well. However, the interest rate on a personal loan is not higher than that on a credit card.

As a result, a lot of Singaporeans are resorting to credit card debt consolidation by taking out personal loans from banks and licensed moneylenders. Unlike home and car loans, how you use the money is entirely up to you. Here are 5 tips to know before getting a personal loan.

1. Avoid taking a personal loan just before a major loan

If you are planning to go for a major loan in the near future, avoid taking a personal loan a few months before. The reason is a key factor called Debt Servicing Ratio (DSR). This is an indication of how much of your income can be diverted towards a car or home loan, and any other previous personal loans. Piling on personal loans can reduce your DSR, and render you ineligible for the home loan amount you have in mind.

2. Research and compare to get low interest rates

Interest rates of personal loans fluctuate on a daily basis, so you must always be on the lookout for a good deal. A bank that offered a low interest rate a few months ago needn’t necessarily offer the same rate. Look for banks that low on borrowing clients, because they are likely to give you better rates, flexible repayment terms, and even other freebies. If you don’t know how to do it, or are simply short on time, borrow from a licensed moneylender.

3. Choose the right lender for your requirement

Choosing the right financing source is half the job done. Your options include credit unions, banks, and licensed moneylenders. Terms of repayment and interest rates vary across these institutions. Banks charge marginally higher than credit unions, but the advantage of borrowing from online lenders is that they provide easy approval. The Singaporean government has recently put a 4% cap on the interest rates charged by moneylenders, making repayment easier.

4. Do not over-borrow

Qualifying for a higher amount that you require can be gratifying, but it is generally advised against. The reason is that you will end up paying extra interest on money you don’t need, which will lead to further complications. Personal loans also carry late payment penalties, and your focus should be to borrow only as much principal as you can pay interest on. Personal loans should also not be used as business loans or for high-risk investments.

5. Be prepared with the documentation

In order to get your money quick, arrange your documentation in advance. Both banks and lenders ask for a few documents for the loan approval process. Banks also require a healthy credit rating to be sure that you can pay off the loan easily. Commonly asked for documents include pay slips, a copy of your passport or NRIC, income tax assessment reports, and so on. However, if you need the money urgently, contact a licensed moneylender. They don’t require a robust credit score and have a very short approval process.

from Financial Directory Singapore

via Financial Directory Singapore

Top Reasons to Consolidate Your Debts with a Personal Loan

The consumer society of today is driven by easy, unsecured, short-term debt, most of which is credit card debt. The Singapore Credit Bureau reveals that 20% of Singaporean credit card users pay only minimum sums on their cards. Lack of proper money management can make matters go out of hand quickly. In such a scenario, taking a personal loan from your moneylender and use that amount to pay off your card debt would be a great idea. Here are some reasons on why you should consolidate your debts with a personal loan.

To improve your credit score

This is the first real benefit of consolidating your debts. Turning revolving debt to installment debt boosts your credit rating, which is important for future credit. If you manage to pay all of your debt using the consolidation loan, the credit score will instantly shoot up. The formula that determines credit score, considers your credit limit in relation to your card balance. However, if your credit score is rather poor, get a personal loan from a licensed moneylender.

Personal loans have reasonable interest rates

You might not mind paying a little extra in interest each month, but over a long period of time it compounds. Compared to the double-digit rates of interest you’re paying, personal loans can have considerably cheaper interest rates. Moreover, by choosing to pay for a personal loan, you will have the convenience of fixed interest rates. If you’re carrying balances on credit cards with variable rates, tracking finance charges becomes problematic.

Personal loans from moneylenders are easier

Being unsecured credit, personal loans can get hard to qualify for, and traditional financial institutions have stringent loan approval requirements. Debt consolidation is not as difficult today, with moneylenders offering personal loans at low interest rates. The process is quick and having a good credit score is not necessary. The verification process is simple and you can get your cash quick. Even foreigners with valid employment permits can get easy personal loans from a moneylender. However, beware of unlicensed lenders or loan sharks.

It prevents further debt accumulation

Dept consolidation does not offer credit facility, and this is important for someone trying to become debt free. These loans are a lump sum which one is obliged to repay in total. Unlike credit cards and overdrafts, where you might go on accumulating more and more debt, debt consolidation offers systematic debt elimination. However, if you need to borrow more while still paying off your personal loan, you can get small payday loans from a licensed moneylender.

It makes you eligible for future borrowing

If you’re still young, chances are that you will need to borrow again in the future. While having a good credit rating is necessary to be eligible for a debt consolidation loan, it also helps with future borrowing. Your credit history should reflect favorably on the state of your finances, if you are to qualify for a vehicle or home loan in the future. Missing payments, making late payments, or having judgments filed against you for bankruptcy can deny you a loan.

from Financial Directory Singapore

via Financial Directory Singapore

Smart Ways to Use Your Small Business Loan

A small business loan provides you the funding to take your business to the next level. It can help solve both, immediate needs and long-term objectives. The good thing about small business loans from a licensed moneylender is that one doesn’t even need a great credit score. Almost all start-ups and upcoming businesses should look to get small business loans, as it can also build future credit. Here are some smart ways to put your small business loan to good use.

Getting new equipment

Purchasing equipment could either be an immediate need or a timely upgrade. If it is the former, approaching a licensed moneylender instead of a formal financial institution is a better idea. Loan approval with licensed lenders is easy, and doesn’t hurt operations.

New tools and equipment can also help streamline the workflow, reduce material costs, and expand your product line.

Improving your online presence

As a small business, it could be that you haven’t had the resources to update your website or run a blog. However, getting a small business loan can change that. You can not only update your website and make it more user-friendly, but add e-commerce functionalities. Advanced applications for tracking leads and CRM can help to generate more sales.

Entering a different market

Many businesses stay within a niche market just because of limited capacity for investment. It is never too early to branch out into potentially profitable territory and exploit newer markets. A small business loan can be used for investing in new markets, and this can pay rich dividends in the time to come. You can also launch new products or set up another branch.

Expanding the workplace

As your business grows, your physical location will need expansion. It could be adapting to your customers’ needs, renovating the workplace for ergonomics, or simply enlarging the area. Consult a financial expert to determine if the expected returns on the expansion will cover your loan’s costs. If you need a small business loan for expanding your seating, or minor construction, approach a moneylender.

Purchasing inventory

This is a common reason why companies get small business loans. This is especially true of seasonal businesses, which need to purchase inventory quickly to make profits off it in the busy season. Even if that is not the case, it is essential to keep up with demand by replenishing your inventory regularly. Compare your total projected sales with the cost of the loan to see what amount you should borrow.

Hiring new talent

As the owner of a small business, you could often get profitable projects that require specialized skills. Even though entrepreneurs manage multiple roles, profits can outweigh the costs of hiring proper talent. Often, new hires can provide directly measurable value to the business.

Paying debts

Small business loans need not be just about fulfilling physical requirements at the facility. They can be used for debt consolidation as well. While deciding on the different sources of credit you’re considering, compare interest rates, fees, and terms of repayment. A licensed moneylender can provide competitive interest rates and flexible modes of repayment.

from Financial Directory Singapore

via Financial Directory Singapore

How to Deal With a Sales Slump in Business

A sales slump is when you cannot close your sales, no matter how hard you try. It is common to face lean patches, but what is important is to minimize them, and get out of them quickly. It is important to stay positive and remember that better sales will eventually follow.

Business slumps can be predicted, since sometimes they occur while you’re busy with promotion. These periods require your immediate attention, and taking smart decisions, like borrowing from a moneylender instead of banks. Here is how to deal with a sales slump.

Identify what caused the slump

This is the first step towards dealing with a sales slump. It could be that your competitors lowered their products’ prices. It could be also be because that your targeted audience’s preferences have changed and your offerings are no longer lucrative/relevant.

There could also be a number of different reasons behind it, like negative attitude in you salespersons, poor prospecting, or lack of internal communication.

Pay attention to customer reactions

In a sales slump, it is important to stop blaming potential clients or the economy in general. This only leads to a downward spiral, and worsens the situation. Instead, objectively assess what is making your customer react the way they are doing.

Study what is resonating well with your prospects, and rework your strategy. Your focus should be on altering your pitch so as to prevent, and not handle customer objections.

Increase the number of your sales meetings

Sometimes, taking the slump head-on is an effective strategy to deal with a decline in sales. While it makes sense to spread out your client meetings to give yourself time, it is better to go for as many sales meetings as possible. For instance, shift a meeting that is scheduled next week, to the next day.

Replenish your product inventory

Filling up your inventory by taking a small business loan from a moneylender can help beat a sales slump. If yours is a business that sells seasonal products, get a small business loan from and purchase inventory in the off-season.

Even otherwise, it is only prudent to keep up with demand. To know what amount you should borrow, draw a rough estimate of your total sales for the coming year. Ensure that sales will cover the cost of the loan and your profits.

Reach out to new markets

If you have limited yourself to certain markets so far, a sales slump can be the right time to branch out. It is possible that your business has reached its growth potential and that you need to target fresh markets. Think about what customer groups your business can appeal to.

Try different marketing channels. By getting a small business loan from a moneylender, you can set up another branch or launch a new product.

Leverage the power of incentives

This can be done in two ways. The first is to have an incentive program for your employees, where performing salespeople can be given attractive prizes. This can automatically weed out underperforming staff and establish healthy competition among your salespeople. Incentive programs for loyal customers, too, can help your business overcome a slump.

from Financial Directory Singapore

via Financial Directory Singapore

How to Change Your Mindset to Get Out Of Debt

Credit and charge card debt has doubled over the last decade in Singapore. High-interest debt, for instance, personal loans and credit cards, comprise more than 20% of household liabilities. While there is a lot of practical advice on how to get rid of debt, it generally discounts the psychological toll it takes.

The right thing to do is to change your mindset, acknowledge your debt, and control your spending. Instead of getting a personal loan from a bank, think about a payday loan from a moneylender. Here is how to change your mindset to get out of debt.

Get rid of the smallest debts first

Traditional advice might recommend focusing on major debts like mortgage first. Research now says that paying off one’s smaller loans first can motivate you to tackle bigger debt. The disadvantage with starting with bigger debts is debt fatigue, which may demotivate and wear you down.

Experts contend that paying debt off is the test of your mental strength, and short-term goals should be your focus. A loan from a moneylender is easier to pay since lenders do not lend you large amounts of money.

Replace jealousy with productivity

Competing with your friends, colleagues, or relatives on material achievements leads to jealousy. It makes you take hasty, and often rash, decisions and bite more than you can chew. Instead of racking up credit card debt by buying fancy gadgets and expensive clothes, you should work for it. If you are envious of someone’s success, motivate yourself to raise your productivity. Ask them career advice and have healthy competition with your peers.

Do not blame others for the debt

Almost everyone finds it easy to blame others for their financial problems and debt. You could think it was your former partner who made excessive credit card purchases. Borrowers also tend to blame banks for ‘luring’ them with credit. This attitude is destructive and keeps you from paying off your debts. Even if it wasn’t exactly your fault, review what else you could have done to safeguard your finances.

Find avenues for extra income

No matter how less you are spending, frugality helps only to a certain extent. It is earning more money that will help you significantly reduce your debt. However, if you are not self-employed, there is a limit to how much you will earn. Moreover, it is hard to find extra time for a side gig. The trick, then, is to become resourceful. You can consider renting out your property and moving into a more modest accommodation. If you want to start a business, get a small business loan from a moneylender, since they will offer you flexible terms of repayment.

Don’t underestimate an emergency fund

Successful debt resolution requires an adequate emergency fund. Even if you are diverting your extra income towards debt repayment, an empty emergency fund will make you use your credit card for any emergency situations. Soon, this turns into a vicious cycle, making debt repayment almost impossible. Split up extra income and allocate a part of it to your emergency fund.

from Financial Directory Singapore

via Financial Directory Singapore

Money Management Tips for the Self-Employed

About 15% of Singapore’s workforce is self-employed, which comes to more than 300,000 people. Traditional financial advice doesn’t work for people working for themselves, a considerable fraction of the population. Employed people often do not have to manage things like health insurance, Medicare, and retirement savings on their own.

If you are setting up your own business, consider getting a small business loan from a licensed moneylender. If you’re in a fix on how to manage finances being self-employed, read the following tips.

Set up a basic budget

It is hard to predict a reasonable, fixed income when you’re self-employed. In this case, determine a minimum amount of money required for subsistence. This will include housing, food, utilities, and other important expenses. Frugality is essential in the initial months, and one must keep their spending minimal.

Think percentages and not dollars

In the first few months, your income will fluctuate often. Allocating a specific amount of money to your retirement account or emergency fund is erroneous. It will result in saving too little in high-profit months and too much in low-income ones. Designate your income to three important heads—taxes, emergency savings, and retirement. Set aside 10% every month for the emergency fund, regardless of income.

Create an emergency fund

One can never stress enough on creating an emergency fund, and it is even more important for the self-employed. The objective of an emergency fund should be to provide financial cover for at least 3-6 months. Remember to use the emergency fund as a last resort. In case of a minor emergency, consider getting a personal loan from a moneylender.

Use better financial months to compensate

There will be months where you will double, or even triple, your average income. Keeping this in mind, many financial experts suggest what is called giving yourself a salary. Dedicate whatever percentages have been decided to taxes and other funds to their accounts, pay yourself your salary, and put the rest in an overhead account.

Make taxes a priority

The old axiom of paying yourself first is redundant in the case of self-employed individuals. While those employed and with a steady salary have their taxes usually withheld, you will have to pay yours yourself. If you fail to set aside tax money, you could face massive unanticipated tax debts. To avoid underestimating what you owe, set around 35-40% of your returns for taxes.

Use the moneylender smartly

Proving credit worthiness while you are self-employed may not be easy at the beginning. Some experts say that paying your credit card bills on time to bolster your financial responsibility. However, reliance on credit card purchases is not ideal for the self-employed. Borrowing from a licensed moneylender is possible even with a weak credit score. Moneylenders also offer flexible payment terms.

Think twice before automating bill payments

When it comes to working for an employer, bills should be automated to avoid mounting of debts. However, the self-employed generally do not have a payday. Instead, whenever a payment comes in, divert pre-decided percentages to taxes, bills and the emergency fund. It is a good idea to have multiple accounts, even though the proposition of a single savings account may sound simpler.

from Financial Directory Singapore

via Financial Directory Singapore