With all this in place, you can start shopping around for the best business loans that are suitable for your business need.<\/p>\r\n\r\n\r\n\r\n

Factors that may affect your qualification for Business Loans<\/h3>\r\n\r\n\r\n\r\n

1.\u00a0\u00a0\u00a0\u00a0 Business Track Record.<\/h4>\r\n\r\n\r\n\r\n

For already existing businesses, the business financial statement is used to evaluate the business’s suitability for a business loan. The revenues and income statements assist to see how solid the business is and can be used to project cash flow.<\/p>\r\n\r\n\r\n\r\n

Therefore, ensuring that your business has sufficient cash flows, will be a plus while applying for a business loan. The cash flow will indicate the business’s ability to repay the loan granted.<\/p>\r\n\r\n\r\n\r\n

For startups, a well-defined business plan is crucial in the evaluation of the business opportunity to be financed and may affect the loan limits provided. Lenders will evaluate the feasibility of the business you are venturing into.<\/p>\r\n\r\n\r\n\r\n

2.\u00a0\u00a0\u00a0\u00a0 Ownership of the Business.<\/h4>\r\n\r\n\r\n\r\n

For government-assisted financing schemes, they require a minimum of at least 30% Singaporean Citizen Ownership. If your business does not meet the requirements for Government-Assisted Financing, do not worry as there are licensed moneylenders and financial institutions that have business loan packages suitable for you.<\/p>\r\n\r\n\r\n\r\n

3.\u00a0\u00a0\u00a0\u00a0 Business Record Keeping<\/h4>\r\n\r\n\r\n\r\n

Businesses are advised to ensure that they observe detailed record-keeping for their business activities. This means keeping documents such as bank statements and accounts in order, as well as the supplier and customer records.<\/p>\r\n\r\n\r\n\r\n

The more detailed and transparent the records of the business are, the easier it is for financial institutions and licensed moneylenders to evaluate the business\u2019s suitability for a business loan.<\/p>\r\n\r\n\r\n\r\n

4.\u00a0\u00a0\u00a0\u00a0 Business Credit Score.<\/h4>\r\n\r\n\r\n\r\n

One of the go-to evaluation criteria used by lenders is to rely on credit scores. It is always a good business practice to ensure that you are always in good standing with the business creditors and lenders.<\/p>\r\n\r\n\r\n\r\n

Before applying for a business loan, ensure you pay all your bills in time and are paying already existing loans in a timely manner. A good business credit score goes a long way in ensuring a successful Business loan application<\/p>\r\n\r\n\r\n\r\n

5.\u00a0\u00a0\u00a0\u00a0 Ensure all vital Application Documents are available.<\/h4>\r\n\r\n\r\n\r\n

As mentioned, business loans are offered to legally register businesses, hence one has to ensure that all the vital documentation in regard to the business operations is available during the loan application. These documents are used to appraise the business for business loans.<\/p>\r\n\r\n\r\n\r\n

6.\u00a0\u00a0\u00a0\u00a0 Apply for Loan Limits the Business is able to repay.<\/h4>\r\n\r\n\r\n\r\n

To ensure you qualify easily for a business loan in Singapore, ensure that you do a proper assessment of the loan amount the business can comfortably repay. Before receiving the loan, it is advisable to design your budget to enable the planning of loan repayments and to evaluate how much loan capital you need.<\/p>\r\n\r\n\r\n\r\n

The uncertainties of business in the previous years have made business operations harder to predict.<\/p>\r\n\r\n\r\n\r\n

It is therefore prudent to ensure, when applying, apply for realistic loan limits. Remember, for successful future business loan applications to grow your business, you must maintain a good credit score through timely repayments of your loan obligations.<\/p>\r\n\r\n\r\n\r\n

7.\u00a0\u00a0\u00a0\u00a0 Period of Operation of the Business.<\/h4>\r\n\r\n\r\n\r\n

The time period of operation for a business before applying for a business loan is a factor to consider. Loan applications from businesses registered a day before the loan application may have a difficult time qualifying for a business loan.<\/p>\r\n\r\n\r\n\r\n

Apart from the above-mentioned criteria, each lender may have additional requirements, hence it is important to find out the specific requirements needed by the lender in advance.<\/p>\r\n\r\n\r\n\r\n