Not having enough capital is probably one of the major problems that keeps a business from growing simply because you are going to need more money in order to expand your operations. Fortunately, companies can secure an SME loan in Singapore, which is still one of the best options when it comes to getting the money you need to boost your business. However, finding the best deal and getting approved for it still remains to be a complicated matter for many business owners. To give a brief overview of how a typical SME loan application takes place, here are 4 frequently asked questions: 1. What do banks and financial institutions look for in an SME loan application? It depends on the bank and the financial institution. That’s because each creditor has its own set of criteria to help them identify a good busines. As varied as these criteria may be, there are some common factors they consider:

• • A legitimate and profitable business
  • A company that has been active for at least 6 months proof of which can be shown through its corporate account transactions
  • Ability to repay through business and personal assets
  • A good personal and business credit history (this includes no bounced cheques in your account)

2. What are the required documents? Similar to the criteria for obtaining a loan, the documents also vary depending on the bank or financial institution. However, these are the most commonly required documents from SME loan applicants:

• • NRIC of the Director(s)
  • Latest 2 years Notice of Assessment (Income Taxes) of the Director(s)
  • Latest 6 months Company Bank Statements
  • Latest 2 years Audited or Management Financial Reports or Statement

3. How much can one borrow? Typically, a business that has a turnover of less than 20 million can qualify for up to $500,000 to a few million of unsecured financing. The final amount will still be subject to approval based on the overall financial situation of the business. Companies that have a turnover of more than 20 million are considered medium enterprises and are evaluated against different criteria. When considering the amount you can borrow, remember that you should not take up more than what your business needs just because you can. If you do, you will just end up paying interest on money you do not need. 4. How can one simplify the process of applying for an SME loan? It all boils down to knowing what you need to achieve your business goals. These include determining what projects you want to do and calculating how much you will need to complete them. Most business owners find it extra helpful to consult with professional loan brokers in Singapore. An experienced loan broker can help speed up the application process by knowing where to get the loan with the most competitive interest and where to go for the highest chances of approval. Make it simpler and faster for your business to obtain an SME loan by talking to us today. Finnex is a business loans specialist with a wide network of banks, financial institutions, and non-traditional funding platforms that could help you get faster approval for your funding needs. Contact us today for a free consultation.