Many people engage in different types of businesses and they always want their business to prosper. There are situations in which businesses have to take a business loan to improve their cash flow and also resolve different business issues related to cash. Capitall Singapore is one such financial institution, which can provide business loans easily. There are many types of business loan Singapore, which people can use as per the requirement. In this article, we will discuss these types.
Line of credit
This is a facility of credit that borrowers can use to draw money as and when they want. They can borrow money when their business needs funds. Line of credit can be of revolving and fixed type. After the borrowers pay back the credit, it will be reset to the full amount. This loan is good for small businesses and there are many benefits, which are as follows.
- People can use this loan to pay their expenses if they arise unexpectedly.
- Cash flow can be managed easily.
- Businesses can make payments to customers easily.
- Equipment loans
Businesses may need to purchase a vehicle or equipment urgently but due to a lack of funds, they may not be able to buy it. In such a case, they can go for equipment loans. Businesses will get benefit from this loan and it will depend on the finance, credit, and age of businesses.
Invoice financing
Another type of loan that businesses can avail of is invoice financing. It is a new type of loan and the basis of its working is based on the invoices of the businesses. The businessmen can get cash in advance from the lender. The loan is suitable for b2b but not for b2c.
This loan provides a good amount of money related to the total invoice. When the customers make payment to the business, it can use the money to cover various types of expenses. The lender will charge a weekly fee from the debtor. The lender provides 8-0% of the invoice and keeps 20% with him. After the customers make all the payment, the lender returns the remaining 20%.
Business credit cards
People use credit cards only for their personal but they can also use it for business. People can purchase business credit cards, which are affordable. Borrowing money with these cards is easy. People can borrow money when they need to pay the expenses of their business. The offerings provided by the credit cards are as follows.
- Cashback
- Reward points
- Protection on the car rentals with the help of insurance
- Bank term loans
People cannot get bank loans for a small amount of capital because banks will not be able to earn any profit. If an established business wants to take this loan, its credit and finance system should be very strong.
Merchant cash advance
If a business wants to apply for the loan based on less expensive products, they can go for a merchant cash advance. If a business can become eligible for other types of business loans, which are less expensive, they should not go for a merchant cash advance. This loan is much expensive in comparison to other business loans. If a business owner takes this loan, he will get advance from the lender and the debtor has to give him a portion of his credit card sales. The debtor has to pay back the loan along with a fixed percentage of credit card sales and both parties have to discuss it before providing the loan.
SME working capital loan
This is a type of loan, which can be considered as a financing initiative taken by a group called Enterprise Singapore. This group helps small and medium businesses to unsecured loans from banks. Many banks participate in the SME financing scheme but some have not become a part of this scheme. Such banks are always ready to provide corporate loans and that also to the established businesses only. People can take the loan up to S$300,000 and the repayment period is one to five years. The interest rate of this loan is 3.2% to 4.5% and it takes around two weeks for processing the application.
SME microloan
This is a loan taken by SMEs in Singapore to get loans for small businesses, which are being conducted in the country. The loan amount can go up to S$100,000 and the rate of interest is 3.2% to 4.5%The processing time of the application is around two weeks and repayment time ranges between one and five years.
Startup Business Loan
This loan is preferred by medical doctors and dental surgeons. When both of them have to set up a small business to start their practice, they can go for this loan. The loan amount can go up to S$ 500,000 and the processing time of the application is two weeks. The interest rate is 3.2% to 4.5% and the repayment time is one to five years.
Wrapping Up
These are some of the business loan Singapore that businessmen can avail from esteemed organizations like Capitall Singapore to resolve the issues regarding their business. Some of them have a low-interest rate while others have high. So choose wisely.