More About Business Loan Rates

Business loan rates are not set in the same way that other personal loan products are. They can vary widely depending on the Singapore licensed money lender; the borrower; and the loan amount.

There are two main ways to get the cash you need to grow your business:

  1. A small business loan from the Small Business Administration, a program backed by the United States government.
  2. A traditional bank loan

Both loan types are fine to use, depending on your circumstances.   SBA loans offered by the government are sometimes easier to get, but often come with tight restrictions and guidelines on how the money can be used.

Larger loans must go through normal loan channels.  This requires establishing a relationship with a high-end lender ad come with stringent guidelines.

Singapore business loanThe loan option you choose will also have a lot to do with the Singapore business loan you are quoted.  For instance, SBA loans generally sport a much lower interest rate. Why? Because they are backed by the federal government. This means that if the borrower defaults on the loan, the government will make those payments. This leaves the lender with no risk; therefore the interest rate is much lower.

Standard business loans often offer a longer repayment term, but this too can hike up the interest rate. Businesses with a poor credit rating and narrow profits may also be quoted a higher rate.  The stronger the financial outlook for a business, the lower interest rate a lender will generally require for a loan.

Whether you are looking at federally backed small business loan products or traditional loans from a business-friendly lender, the bottom line is that your interest rate will depend a great deal on these important factors:

  • Your Credit Worthiness.
  • Your Businesses Profit/Loss Statements.
  • The Length of the Loan Term.
  • Your Business Equity

The key to negotiating the best rate you can is to understand what can increase the rate on a specific loan, and what can help decrease it. That way you can position yourself in a manner that will ensure the best possible business loan rate available at the time you apply for your loan.


Tips for Securing a Small Business Loan

There is nothing more exciting to an entrepreneur then starting a new business. Seeing the fruits of your labor and executing your passion is an excellent way to start each day. Unfortunately, all businesses require startup or additional capital when expanding. This likely means you need to acquire a loan which isn’t the most fun aspect of running a business but can be achieved through careful planning and work.

Prior to approaching the bank, follow this simple and practical guide on how to prepare to apply for a business loan. By following these instructions, you should be able to secure a small business loan in no time.

One: Bank Criteria

expat loan SingaporeDifferent lending institutions have different standards but typically all banks require that the loan be for sound business purposes, you and your business partner have experience in the industry and are of good character and you have the ability to pay back the expat loan Singapore. Strong collateral and having a personal equity in the business helps.

Two: Required Information

Generally, banks need your personal and business credit history and financial statements, cash flow projections for a year or more, personal guaranties from business principal owners and a detailed business plan.

Three: Streamlining the Process

To make the process easier, select your lending institution wisely and carefully. Remember that large banks often shy away from small loans because they are less profitable but require the same amount of servicing. Approach banks that you are a customer of or have worked with in the past. Check out credit unions or local community banks. Also, speak with a lending officer first to determine required documentation and make sure to bring all requested documents.

Four: Standard Small Business Loan Amountloan lender
Although small businesses are available in all sizes, the median small business loan is between $130,000 and $140,000 with the highest at $250,000.


Five: How to Secure Financing

Start-ups tend to be the most difficult to secure financing. However, with a strong business plan, enough personal resources for investment and collateral, many community banks will consider lending you money.



Auto Loan Tips For You

Getting a loan for a new car is a big step. It is also a great way to buy a reliable vehicle that can safely get you from one place to another. Before you sign the papers for a car loan, there are a few things that you should keep in mind.

Know Your Credit Score

credit score

It is important to know your credit score before you start looking into car loans. If you have a low score, you can expect to pay very high monthly payments. The first thing that you should do is make sure that there are no errors on your credit report. It is not uncommon for creditors or the credit bureau to make an error. These errors can end up costing you a great deal of money in interest payments. The next thing that you want to check is your score. If your credit score is low, and you can wait to purchase a new car, you should do so just long enough to get your score up a bit.


Determine How Much Money You Can Afford

It is a good idea to sit down and figure out how much you can afford to pay for a car payment. You don’t want to purchase something that you cannot afford, only to have it repossessed. When you are figuring out how much you can afford, you want to consider the costs that are not going to be included in loan payment. This includes sales tax, registration and title fees, and the cost of auto insurance. You don’t want to get a car loan, only to find that you cannot afford to get it on the road.

Shop Around for Lenders

Getting a loan for a new carMost dealerships have their own financing office, where you can get a car loan. In some cases, they will offer you the lowest interest rate. In some cases, they will not. Before you sign on the dotted line with a lender, you want to make sure that you are getting the lowest rate possible. Shopping around for lenders is the best way to do this.

Taking out a car loan is a big step. In order to avoid doing something that you will regret, or ending up with a high interest rate, it is important to do your research.