Company loans help to boost businesses and startups. We hear a lot of stories about how entrepreneurs started their businesses, but the truth is they probably got some form of help in the beginning.
So, taking out a small business loan can help you start or grow your business, but it is important to know what you are getting into before you go ahead and borrow money. The following are guidelines on how to get a company loan here on SUCredit in Singapore.
1. Prepare For The Application Process.
So, first off, you are going to want to prepare yourself before you go and submit an application. First, decide how much you need plus be clear on what you need the loan for.
You may use a loan calculator to know the amount of loan that can cater to your needs. Many lenders including SUCredit will mostly ask you why you would like to borrow from them.
There is a range of company loans and all have qualifications. Sorting out what type of company loan you need is very important as it may ease up the array of questions.
2. Check The Repayment Plans
Consider your repayment plans. Be realistic about how much your business can afford in terms of repayments, and think about any external factors that could potentially put a wrench in your plans.
Moreover, you should also consider discussing your plans with a financial advisor, which will give you some more personalized recommendations and help you just learn more overall.
Also, try and evaluate whether the repayment plans favor you at all. Do you feel comfortable with the duration given? How well can you structure the repayments to ensure that each month there is money allocated for that specific intention?
3. Check Whether You Qualify
Determine if you qualify for a company loan. Before you meet the required qualifications and get approved, you must check your eligibility. We are stating details like company legitimacy, company debt repayment history, references, quality of service, proof of business viability, and demonstrations of stable cash flows among others.
A company is a separate legal entity and has legal rights and responsibilities and is treated as a separate entity from its owners or shareholders. Also, try and check your needs first before settling for a specific loan to prevent going back for different loans before you pay the first one.
4. Submit The Documents.
With the simplicity of the SU Credit online platform website, it is very simple to submit your details for a quote. Once you check-in and access it, you will click on the loan application and be directed to a page for the process initiation.
Step 1. A page will appear on your screen that will require you to fill in your details which include: Full name (as per NRIC), contact number, and email.
Step 2: Click on next and a loan details page will pop up and will require you to fill in your monthly income of the company. It will also require you to input the loan amount you want to borrow and the purpose of the loan, which in this case you will choose and click on the business loan.
Step 3: After moving forward and clicking on the next process, the form will inquire from you whether you would want to write an additional message, for example, your preferred appointment date and time, or rather any formal suggestion.
Signs That Will Indicate That It Is Time For A Company Loan
1. Cash Flow
Not having enough cash flow could be a sign that you are ready for a loan. So for example, let’s say you are in a position where you’re constantly having to pay for new inventory upfront, but maybe your wholesale partners only pay you out at the end of every month.
There could be a chunk of time when you don’t have enough money available to pay for the things you need to have to run your business, like inventory. This is a legitimate example of when you might start looking for a loan.
You might need to invest in some equipment and a loan might make sense if you need equipment that is either going to start, maintain growth, or grow your operations.
However, the key here is that this investment should be showing a return in the long run. That will validate your need for a loan.
One of your biggest costs as an e-commerce business is hands down going to be advertising. So, whether that means that you are shelling out money on online ads, or maybe you have hired an agency to manage the ads for you.
A company loan can help you spend that money to be able to make that money back. Moreover, when you know how you will do it, then a loan will come in handy.
We cannot foresee the future, so sometimes even our savings may not cover our mishaps. Let’s say your equipment fails, a loan can help you get out of a sticky situation. Getting a loan would make sense in this type of scenario so that you can continue operating as usual.
Only take up a company loan when you have some needs. Otherwise, you may take up a loan and be unable to pay it on time. Also, consider checking the loan’s interest rate before agreeing to take it up. Do you think your company’s profit will be able to pay up the loan? Also, remember that there are other operational costs that you will need to cater to.