As a business owner, promoting your products and services is not the only thing you should do. You also need to take care of your finances to make sure your business would run smoothly. However, no matter how much money you save, it is not enough. Sometimes, life happens. There will be emergencies where you will need extra money to cover for those situations. When that hits you, you have no choice but to consider taking a loan for your SME, yet that is alright. You are not alone. Being short on cash does happen to some SME once in a while. It just so happens that you are experiencing it earlier than others. So fret not to get an SME loan when you do need it. You see, knowing you have an extra pocket to draw money from is quite comforting. It does give you some peace of mind.
However, how would you know if the money you loan for your SME in Singapore is indeed worth it? What if you end up paying all the rates and interests that is even more than the principal amount? Well, before you take out a working capital loan for your SME, it would be a good idea to understand first if you are qualified to get one. To give you a hand, here are some of the factors that you need to consider before filing a loan application.
- How Many Years Are You In Business
If you are just a startup, chances are of you getting approved for SME loan is unlikely. They would not bulge to give you any penny without assuring your credibility. That is why the age of your business matters a lot. If you recently started your business, it would be a good idea to wait a few months before filing an SME loan application. Perhaps, around six months. That is enough time to show them how credible you are and how much your customers rely on and support your brand.
- How Much Money Do You Need to Borrow
When you apply for an SME working capital loan, it is indeed apparent that you need to know how much money you want them to lend you. So, think of a realistic amount on how much you would need to cover for those plans you have in mind. If you can, create a budget business plan, list down all the estimated expenses. Upon doing this, you would grasp how much you need.
- How Soon You Need the SME Loan
It is indeed true that things could go wrong if you decide hurriedly. So, before filing your SME loan, it would be a good idea to take your time. Arrange your thoughts along with all the necessary documents you need to submit. If you can, seek advice from those people who you are close with, it would help you decide and think of a better plan on how to get your loan application approved.
- Determine the Market Condition
Just in case you didn’t know, the economic growth and the current market rate matters when applying for an SME loan in Singapore. Simply because if the economy is doing great and the market would do well, too! Plus, there is a higher chance that your loan application will be approved, while if the market is fluctuating, then your loan has a higher chance of a high-interest rate.
Once you have considered all of these factors, it would be a good idea to do your best to get your SME loan approved. Here are some tips that can help you make that happen.
- Settled Unpaid Debts
Having unpaid debts could not only affect your credibility, but it could also prevent you from receiving approval for your SME working capital loan application. So, before you file anything, make sure to clear your debts.
- Create a Detailed Business Plan
While you are settling your unpaid debts, it would also be a good idea to create a detailed business plan on where you will be using the money they lend you. Make sure to write it legibly so it would leave a good impression to the lender and increase your chances of approval.
- Ace the Interview
Similar to applying for a job, they would also call you for an interview. That way, they will be able to grasp your intention and the reason behind why you need to get an SME loan. So, make sure to answer all of their questions honestly and convince them more about the plan that you proposed. You see, showing apathy would help you receive approval from them, and they would know how serious you are in this matter.
Still, cannot find a loan for your SME? Reach out to our SME working capital loan!
At TT Media, our purpose is to help those SMEs who need some extra cash to cover for any unexpected situations. Through our working capital loan, we can help your SME to sail smoothly, especially in this unprecedented time. That way, your business would survive throughout the pandemic.
So, what are you waiting for? Visit our website today and find out more what else we can do for you aside from lending you an SME loan!
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