3 more Tips for Improving Your Chance of Getting a Business Loan

The presence of several moneylenders has created a pool of big opportunities to grow your business in Singapore by taking out a business loan. However, don’t stick to only one financial organization. It is always better to approach multiple licensed moneylenders and check what they have to offer. Here are some more tips to enhance your chance of getting your business loan application approved.

1. Compare and shop

It is not necessary to take your business loan from the bank where you have your existing savings or business account. Don’t get frustrated if some moneylenders reject your loan application. Even if a moneylender accepts your proposal, don’t stop approaching and checking the interest rates with other financial institutions. Remember, it’s an obvious fact that the amount will have to be paid back with interest at an agreed rate; hence you should make sure you’re settling for the lowest interest rate and the most transparent terms and conditions.

2. Take steps to improve your credit rating

When a licensed money lender reviews you loan application, they mainly want to check your credit rating and the amount of risks involved in you venture. If their evaluation shows your business is risky or has very less chance of getting enough return on investment (ROI), your chance of getting a loan is very less. Hence, take steps to improve your credit rating. For instance, do what’s necessary to increase your revenue earnings and pay your existing EMIs on time.

3. Show your assets but don’t pledge your collateral

Before approving your loan, a bank or moneylender may want to know what tangible assets you have. For instance, you may have a car and home, etc. Lenders want to see whether you have the capability to pay back the loan amount by selling off your personal assets, should your business fails. While you can disclose your assets to the lender, it is never a good idea to mortgage your assets for getting a loan.

from Financial Directory Singapore https://www.financialdirectorysg.com/2018/03/07/3-more-tips-for-improving-your-chance-of-getting-a-business-loan/


3 Tips for Improving Your Chance of Getting a Business loan

If you think getting a business loan is difficult, you are both right and wrong. It depends on what path your take. If you go the traditional way of applying to a bank, it may take a little longer. Getting a business loan from licensed moneylenders, on the other hand, is often more time-saving and straightforward. In either case, you should fit yourself in the shoes of the moneylender. In other words, you should look at the obligatory requirements from their perspective so that they don’t disappoint you by saying ‘No’. Here are some tips to increase your chance of getting a business loan approved.

1. Maintain a steady cash flow

Most SMBs face some common challenges to getting business loan approved. Poor cash flow is a common reason for business loan rejection. It is important to take concrete steps towards improving your cash flow. Hence, find ways to keep a steady flow of cash coming into your business. Also, keep your financial statements, bank transaction details, tax returns updated, as all these documents will establish the performance of your business till date. On the other hand, all your documents should show that you are able to pay off the loan with interest as you are paying your employees on time.

2. Prepare your business plan before approaching for loan

Never go and simply ask the bank or licensed moneylender how much you can borrow in terms of business loan. This will give them a false impression of yours and they may think you have no fixed idea or track to expand your business. Don’t give any vague or general response about your plan of growing the business as it won’t work as far as procuring business loan is concerned. In case if the officials ask, your investment plan should give an impression that you are not alone. They prefer to see if you have communicated with experts in your field and hired an accountant and financial advisor at least.

3. Prepare your business plan before applying for loan

A detailed business plan shows that you have a clear idea of what you want to achieve in business within a specified timeline. This may include estimate of expenses, income and cash flow projection.

from Financial Directory Singapore https://www.financialdirectorysg.com/2018/02/23/3-tips-for-improving-your-chance-of-getting-a-business-loan/

3 Tips for Paying Off Payday Loans

Thanks to the licensed money lenders in Singapore, we now have a surefire way to deal with our short-term financial emergencies, should they hit us days before our monthly Pay Day. To keep the option open, however, you must repay your loans in a timely manner. Essentially, you should have a proper plan for paying off your payday loan. Here are some useful tips.

1. Look for ways to earn an extra income

Look for any opportunity to earn an extra income by working extra hours every day and by utilizing your weekends. Another good idea would be selling any unused items at online auction sites, such as eBay and Craigslist. For instance, if you have some used mobile phones and electronic gadgets in proper working condition, you can sell them to earn some quick cash and use that amount to pay off your loan.

2. Automate your payments

When you’ve money in your bank account, you may be tempted to spend it on unnecessary items. Automating payments for your utility bills and loan EMIs is a great way to deal with this syndrome. The money goes to the lenders straight out of your bank account; and you’ll be left with the remaining amount. This helps you set a feasible budget for your day-to-day expenses. You’ll not be able to spend money on unnecessary things. Also, this will help pay your monthly installments on time, and thus avoid penalty charges. Automatic transfer ensures that the loan repayment is never delayed.

3. Pay off extra when possible

If in some months you can pay more than your premeditated EMI, go for it. While paying off the bare minimum saves you from penalty charges, it is always a good idea to pay more whenever you have extra cash in hand. Paying off a portion of your debt will not only keep your burden in control, your entire payday loan will be repaid sooner than later. Hence, instead of spending your extra bucks in some unimportant things, make the payment whenever it is possible.

from Financial Directory Singapore https://www.financialdirectorysg.com/2018/01/31/3-tips-for-paying-off-payday-loans/

Tips on How to Use Payday Loans

Payday loans are a great way of managing emergency expenses. And when you borrow from a licensed moneylender, the risks are minimal. However, the success of a payday loan depends on how well you manage and use the amount for your benefit. Here are some tips on using paydays judiciously.

Never use it for settling monthly bills

Remember, payday cash advances are ideally meant for catering to emergency expenses which arise out of nowhere. This could well be a medical emergency, an immediate travel, an impending purchase and similar. However, never consider opting for a loan for covering up your monthly bills. Your bills should be well within your income!

Have the payback plan in place

As your licensed moneylender will advise you, always have a payback plan in place even before you have received loan amount. A payday loan runs from one payday to another and attracts heavy interest on default. There is no alternative to paying back on time. So make sure you have planned the resources well before opting for a cash advance. As the old saying goes, “borrow only as much as you can payback.”

Prepare a budget beforehand

One of the biggest mistakes to make is to seek a certain amount as loan without budgeting the expenses. Make a list of expenses you wish to cater to with your loan amount. Without a proper budgeting, you will only see the amount disappear into nowhere! Never add the loan amount to your pool of income, always keep it separate and use it for catering to additional expenses.

Most importantly, never opt for cash advances if you are incapable of managing your borrowings well. Defaulting on payments can lead you straight into a debt trap! Make sure you have a responsible approach and choose to payback your loans on time.

from Financial Directory Singapore https://www.financialdirectorysg.com/2018/01/18/tips-on-how-to-use-payday-loans/

4 Common Financial Emergencies in Life and How to Handle Them

You might be working hard for achieving your financial goals. However, emergencies don’t seek appointments before they throw your planned schedules out of gear. Most importantly, financial emergencies can cause serious distress, unless they are planned remarkably well. You always need to have quick cash sources, such as, a trusted licensed moneylender at hand. Here are four of the most common financial emergencies and how you should deal with them.

1. Job loss

A job loss can often happen all of a sudden. It could be due to market conditions, the overall performance of your company, any change in company policies and so on. Most of these conditions have nothing to do with you. However, it is you who would be forced to face the consequences. When you lose your job all of a sudden, the first thing to do is to find an alternate source of income. Make sure you have a contingency fund at hand. Liquid investment instruments like SIPs, mutual funds and fixed deposits also help.

2. Health emergency

This could be due to a sudden illness or an accident that requires hospitalization. The best solution is to have a comprehensive health insurance policy. Make sure you have studied the terms and conditions before buying. In addition, consider investing in a contingency health fund. If you do not have the necessary amount, you may also consider applying for a personal loan from a licensed money lender.

3. Death of the bread winner

Sudden demise of the bread winner can spell disaster for a family especially if there are multiple dependants including kids and senior citizens. Depending upon the family size, the earning member should opt for enough term insurance for replacing his entire income.

4. Natural calamities

Natural calamities are unforeseen but can wreak havoc on your life. The best way to prepare for the same is to get an insurance cover for your tangible property, be it home, valuables like jewelry, vehicles and so on. Having health and life insurance is also equally important.

Emergencies are unpredictable. However, advance preparations can certainly help tide through them easily.

from Financial Directory Singapore https://www.financialdirectorysg.com/2017/12/22/4-common-financial-emergencies-in-life-and-how-to-handle-them/

3 More Money Tips for Expats in Singapore

Settling down in a foreign country may be unnerving on many counts. You will have a new culture to adjust to, new climate, new language, and the list goes on and on. However, the most important aspect of settling in a foreign country as an expatriate will be the money management part.

You will need to put your finances in order and engage tools for ready help. You will also need to be aware of the local norms with regard to investments and taxes so as to be able to forecast spending. If any sudden financial requirement arises, you can apply for a foreigner loan to a registered money lender in Singapore. Here are some more tips.

1. Choose your bank wisely

Open an account with a local bank that offers plenty of ATM options. If you wish to have an expatriate account so that deposits can be made from your home country, many of these local banks will offer that facility. You can even choose an international bank, especially if you have an account with the same bank, back home. In such cases, you may even enjoy a fee less fund transfer facility with them. Research your options well before you choose.

2. Make practical choices when it comes to place of stay

When seeking a roof above your head, getting swayed by high end homes in the outskirts of the city is easy. However, spending uselessly on cab fares everyday is hardly advisable. Considering staying close to The Orchard Road or the Central Business District where most of the workplaces are, so that you can walk to work and save on commuting charges.

3. Local food is a great alternative to expensive restaurant meals

Local foods at roadside stalls in Singapore offer a great option to save money. If you are concerned about hygiene levels, check the grading where A is the best and D the worse.

Make sure you have enough money in the bank, for that added sense of security. And approach a registered money lender for additional funding, if you need to.

from Financial Directory Singapore https://www.financialdirectorysg.com/2017/12/08/3-more-money-tips-for-expats-in-singapore/

Top Reasons to Take up a Personal Loan

Personal loans can be truly handy tools when managed well. You should know when to consider such a loan and where to borrow from. In Singapore, licensed money lenders are by far the best source to offer a quick cash advance. When should you consider one such loan? Here are some typical situations where these advances can truly be of help.

Dealing with an emergency medical expense

An unforeseen medical expense can wreak havoc on your family budget. Keeping them unpaid for long is not an option at all. In fact, a personal loan can actually help you tide through the immediate crisis, without hampering your credit score. Unpaid bills are sent to the collections department which then has an adverse impact on your credit ratings. It is better to manage them with a quick loan, instead.

Consolidation of credit card debt

Unmanaged credit card debts can ruin your mental peace. If you have debts on multiple cards, managing them is nothing short of Herculean. Besides, the rate of interest charged by credit cards is too high. One of the best things to do is to foreclose the consolidated credit card outstanding amount with the help of a personal loan. That way, you will have only one loan to deal with and the rate of interest will be manageable too.

Launching a side business

A personal loan taken up from a licensed money lender can help you start a business. Raising funds for your startup could be time consuming, if at all possible. Here, a personal loan can help you kick off the proceedings fast. If you are planning to start a side business while you are still working, a personal loan could be the best option for you, because you can pay it back from your salary.

Personal loans also offer a quick and easy financial solution to home remodeling, wedding ceremony, and vacations.

from Financial Directory Singapore https://www.financialdirectorysg.com/2017/12/06/top-reasons-to-take-up-a-personal-loan/