Business Loan

HOME / Services / Business Loan

Business Loan

SMEs significantly help Singapore’s already thriving economy to prosper more. But, many still have the challenge of finding enough capital.

It is possible for entrepreneurs to build a business from scratch through hard work and perseverance. However, this strategy may prove to be inefficient if you want to attain faster business growth. This is where our business loan offers come to the rescue.

We want to help people start or expand their businesses by offering flexible loans with minimum requirements in order to grow businesses, add more jobs, and uplift the country’s economy.

We can negotiate for the best deals that work best for our clients and make their business soar to the next level.

What is a business loan?

Odds are if you are looking at this website, you are interested in taking a business loan. But you may still have many questions about it: What is a business loan? Can I qualify for such a loan? How do I apply for such a loan? And the list goes on. It is best to clarify these queries by starting with the definition of a business loan. A business loan is an injection of capital for business purposes. As per regular loans, such loans have to be repaid with added interest.

There are two types of business loans: secured and unsecured loans. While the nomenclature might incur some hesitation, these loans are actually very safe and trustworthy. With a secured loan, a borrower would have to pledge an asset (e.g. equipment, stock or vehicles) against the debt. In the event that the loan is unable to be repaid, the secured assets serve as the collateral. On the other hand, unsecured loans do not have collateral, and are much more commonplace, although interest rates may be higher.

Reasons why people need a business loan

The entrepreneurial road to success is often bumpy, and you may meet with many resource problems as you strive to keep up your business for the long run. Current business owners may also face similar issues and are struggling with resources in the present moment. Business loans offer financial aid to aspiring entrepreneurs to take the first leap of faith; and allow businesses to receive renewed vigour in your stride. Just as the tide ebbs and flows, not everyone has access to resources or capital to start-up their dream job, and not every business is smooth sailing. Business offers a solution by easing cashflow problems and give you the extra push to reach for your dreams. They extend a helping hand to your business in difficult times to help you keep your dreams going for the long run.

While business loans may help struggling businesses and aspiring entrepreneurs, the idea of debt creation while being strapped for cash may not sit well with some. However, there are several reasons why such debts may be a necessary step back to move many levels forward.

1.Striking While the Iron is Hot

Whether or not you are an entrepreneur or an established business, it can be mutually agreed that timing is everything. Many factors play a role in deciding when is the best time to roll out such commitments, such as local and overseas market performance, recession, or changes in demand.
One option when deciding to expand your business is to ensure that you save up sufficient funds before deciding to commit fully. However, time waits for no man, and you might end up missing market opportunities in the process or lose your place to a competitor. Business loans saves you sleepless nights of regrets wishing that you would have had taken advantage of market opportunities sooner, or that you had the resources to do so. Taking business loans can help ensure that you have sufficient funds when the right opportunity presents itself and affords you the ability to strike while the iron is hot. Sometimes, not taking the shot may cost you more than taking the business loan.

2.Bracing for the Unexpected

Life is unpredictable. One minute your business could be thriving and in another, life hits you where it hurts most. It could be any number of reasons: global recession, machinery breaking down, loss of a long-time client. The recent Covid-19 outbreak is a bleak reminder of life’s unpredictability. Food and retail business saw a decline of up to 23.6% and 14.1% in March while manufacturing businesses suffered from severe decline due to sharp falls in orders.

During such situations, attempting to wait out the problem may be too much for some businesses. Waiting for other parties such as investors to help your business may be as equally unpredictable as life itself. While you can’t control all aspects of life, you can start controlling what you can by applying for a business loan. A loan provides you the ability to receive cashflow support to tide over difficult times. Repayment of loans can be spread out over a long period up to five years. However, taking a loan while you are struggling with cashflow may not be advisable, as it may leave you with a bigger hole to fill than you began with.

Frequently Asked Questions

There is no minimum or maximum amount for business loans. We will strive to provide a loan that accommodates to the needs of your business. However, do note that the total loan amount may vary based on the company financial statements and documents supplied.

To apply for a business loan, we require the following documents:

  • NRIC copies of the company’s directors
  • Financial statements of the company for the last 6 months
  • Income Tax Notices of Assessment of the business owner(s)
  • Latest ACRA business profile
  • Tenancy agreement for the company’s office and/or facility premises

Processing of business loan application typically requires a period of two weeks. This takes into account a large amount of paperwork involved and high volume of loan applications that banks would receive.

While it is easy to apply for business loans in Singapore, a successful application may elude businesses more often than not. In 2019, only 39% of small-medium enterprises (SMEs) was eligible for business loans. Not every business can take advantage of business loans for various reasons including: insufficient revenue and bank balances, weak financial performance, lack of minimum local shareholdings and low credit scores.

Firstan Capital provides both secured and unsecured loans that proffer the flexibility for your next big step, regardless of your company size, or the industry you may be in. We are an established business loan provider who has lent a helping hand to many companies in industries such as automobile, food and beverage, transportation, and logistics industries, and more. Our financial experts have a wealth of experience in advising businesses in order to determine the optimal loan amount, tenure, and interest rates to suit your one-of-a-kind needs.