SME Loan Consultation

Looking to grow your business but struggling to secure the financing you need? Don’t worry, you’re not alone. Many entrepreneurs face obstacles when it comes to accessing the capital they need to take their business to the next level. That’s where Finnex’s SME loan consultation comes in.

Our team of consultants is here to help you navigate the complex world of business financing and find the solution that’s right for you.

Service Descriptions

SME Loan Consultation

Here at Finnex, we believe that the best ways to help an SME are to equip the business owners with a better understanding of their business position, exploring fund utilisation plan to maximise its effectiveness as well as to always be truthful and realistic, and to always carry their best interest in mind.

Having over 30 years of collective corporate finance consulting experience and a network of more than 60 unique Financiers in Singapore, we have the expertise and experience to assist business from various industries.

Utilising our proprietary tool, L.E.L.A., we create highly accurate assessments that allow us to better plan and recommend the best suited financial facilities for our clients, paving the path for their Growth, Sustainability & Stability (G.S.S.).

What to expect for
your business:

What is SME Loan Consultation?

SME Loan Consultation is a process of seeking advice from a financial expert or consultant to help small and medium-sized businesses (SMEs) in obtaining loans or financing for their business operations.

The consultant’s primary role is to ensure that the loan application process is completed successfully, from satisfying a financial institution’s requirements down to the actual disbursement of funds.

Why do SMEs need loan consultation?

SMEs need loan consultation for various reasons, such as to identify the appropriate funding type for their business, to analyse their firm’s finances, and to ensure that their loan application process is completed successfully.

SMEs hold a significant position within Singapore’s economic landscape, exerting substantial influence by making up 99% of all enterprises. These dynamic business entities contribute a remarkable 48% to the country’s Gross Domestic Product (GDP) and provide employment for approximately 65% of its workforce. This success can be attributed to substantial financing opportunities available to entrepreneurs and business owners such as SME loans.

Loan consultants can help SMEs to understand and even plan for the different types of financing options available to them, including short-term and long-term loans, and advise them on which option is best suited for their business needs.

Further, consultants can also help SMEs to prepare their loan application documents, such as financial statements and business plans, and provide guidance on how to present their business to lenders.

Who provides SME loan consultation services?

Finnex well-trained loan consultants are equipped with the knowledge of all loan products and the effective utilisation of it.

Loan consultants / Business Loan Advisors are professionals who specialise in helping businesses find the right financing options for their needs. They can provide guidance on the loan application process, eligibility criteria, financing options that are available to SMEs, increase their chances of getting approved for their requested facilities, and maximise the effectiveness of the way the loan(s) are utilised.

When should SMEs seek loan consultation services?

SMEs should seek loan consultation services when they need financing to start or grow their business, or when they want to refinance existing debt. It is important to seek consultation before applying for a loan to ensure that the loan product chosen is the most suitable for the business needs.

Loan consultation services can help SMEs understand their financing options, prepare their loan application, and increase their chances of getting approved for a loan.

Where can SMEs find loan consultation services?

SMEs can find loan consultation services through various channels, such as online search engines, referrals from other business owners, and direct contact with loan consultants.

Online search engines can provide a list of loan consultants in the SME’s area. Referrals from other business owners can provide valuable insights into the quality of service provided by loan consultants. Direct contact with loan consultants can help SMEs understand their expertise and experience in providing loan consultation services.

Some financial institutions also offer loan consultation services to their customers. SMEs can contact their bank or credit union to inquire about loan consultation services.

How does loan consultation work?

Loan consultation for SMEs is a process where a financial expert provides guidance and advice to small and medium-sized enterprises (SMEs) on how to secure loans for their businesses. The consultant works with the SME to understand their financial needs and goals, and then recommends suitable loan products and lenders that meet their requirements.

The loan consultation process typically involves a thorough analysis of the SME’s financial statements, business plan, credit history, and other relevant factors. Based on Finnex Loan Eligibility Loan Affordability (“L.E.L.A”) assessment, the consultant identifies the best loan options available to the SME, and helps them prepare a strong loan application that maximises their chances of approval.

The consultant also provides ongoing support to the SME throughout the loan application process, helping them navigate any challenges or obstacles that may arise.

What are the benefits of loan consultation for SME?

There are several benefits of loan consultation for SMEs:

Access to expertise: Loan consultants are experts in their field and can provide SMEs with guidance on the loan application process, eligibility criteria, and financing options that are available to them. They can help SMEs navigate the complex world of business financing and provide valuable insights into the lending process.

Improved chances of loan approval: Loan consultation services can help SMEs understand the requirements and eligibility criteria for different types of loans. By working with a loan consultant, SMEs can identify areas where they need to improve their financials and increase their chances of getting approved for a loan.

Time-saving: Loan consultation services can help SMEs save time and effort by streamlining the loan application process. Loan consultants can assist SMEs in preparing the loan application and negotiating with lenders, saving them time and effort.

Access to a wider range of financing options: Loan consultants can help SMEs understand the different types of loans available to them, such as term loans, lines of credit, factoring and invoice financing. They can explain the differences between secured and unsecured loans and help SMEs choose the best option for their needs.

Improved loan terms and conditions: Loan consultants can help SMEs negotiate with lenders to get the best possible loan terms and conditions. They can ensure that SMEs are getting the best possible deal and that the loan terms are favourable to their business.

Increased financial literacy: Loan consultation services can help SMEs understand the lending process and financial concepts, such as credit scores, interest rates, and loan terms. This can help SMEs make informed decisions about their financing needs and improve their financial literacy.

Peace of mind: Applying for a loan can be a stressful process, especially for businesses that are new to the lending process. Working with a loan consultant assures SMEs they are making informed decisions and that they are getting the best possible financing terms and conditions. This can help SMEs focus on their business operations and growth, rather than worrying about their financing needs.

5 Steps Journey Finnex
Help Your Business

*Applicable for SME Loan Consultation only.

01

Understanding

We want to understand your business and/or your goals so as to ensure your expectation can be met with the crafted solution.

02

Screening

We collect the necessary documentation to analyse on your business performances and its loan eligibility with our proprietary tool, L.E.L.A*, up to 85% accuracy.

03

Analyze

According to our analysis and assessment, we aim to achieve managed expectation with our craft solutions with selected financiers in our network to protect you and your business creditworthiness

05

Fund Utilization

That’s not the end, we want you and your business to soar greater heights with our Fund Utilisation Plan* and advance planning to close the working capital gap experienced from your growing business.

04

Approval

Acquire and accept the approval(s) duly subjective to financiers’ credit assessments and our negotiations with them.

Key Financial Products​

With a range of loan options available, SMEs can find the financing solution that best fits their unique needs. At Finnex, we’re here to help your business thrive with our comprehensive range of SME loan products
This program has ended. Temporary Bridging Loan Programme (TBLP) was initiated by Enterprise SG in 2020 to allow SMEs in Singapore to have greater access to working capital needs arising due to Covid-19 outbreak. TBLP will be ending on 30th September 2022 as announced in this year’s budget announcement and commands the lowest interest unsecured term loan where SMEs can use for daily operational needs and expansion.
Financing 100% value of the supplier invoices billed to you. A trade finance is a line of credit that allow the SME to have lesser strain on their purchases by paying on behalf first, more time to liquidate their inventory (varies dependent on your trade cycle) and increase its total working capital that also increase:
Up to S$500,000 limit can be taken. Risk share is at 50%. Young enterprises may receive a risk share of 70%. The borrower is responsible to repay 100% of the loan amount. When defaults occur, the Participating Financial Institutions (PFIs) are obligated to follow their standard commercial recovery procedure, including the realisation of security, before they can make a claim against Enterprise Singapore for the unrecovered amount in proportion to the risk-share.
Up to 90%* financed value of customer invoices. Factoring (Invoice Financing) is when a supplier borrows money from a third-party financial company called a “factor” by selling its invoices (receivables from customers) at a discounted rate and paying a percentage of the invoice amount to the lender as fee for borrowing money.

Up to S$5M collectively, a Business Term Loan is the Financier’s in-house loan that is granted to help companies by providing the right amount of funds to implement new systems, upgrades, and other related projects and investments to grow their operations and give better services or products to customers.

Up to 80% Loan-to-Value, a Property Term Loan is derived from the unencumbered/paid up value of your property, be it residential or commercial. This can be used to finance your investment in your business with the lowest cost of borrowing one can possibly get.

Up to 90% of purchase price or valuation of the machinery and equipment. SMEs seek for this to purchase new and/or used industrial machinery and equipment to make their operations and outputs more efficient. It is a secured loan with the equipment or machinery as collateral.

Secured Business Overdraft (with collateral) and Unsecured Business Overdraft (without collateral) are the two types of Business Overdraft facility that will allow you to utilize monies from your bank account event if it has insufficient funds in it. You can have ready access to cash when it is needed to support daily operations or as a contingency fund on standby.

Up to 80% Loan-to-Value, a Property Term Loan is derived from the unencumbered/paid up value of your property, be it residential or commercial. This can be used to finance your investment in your business with the lowest cost of borrowing one can possibly get.

Up to 90% of purchase price or valuation of the machinery and equipment. SMEs seek for this to purchase new and/or used industrial machinery and equipment to make their operations and outputs more efficient. It is a secured loan with the equipment or machinery as collateral.

Supply Chain Finance is a structured facility that allows the SMEs trade cycle to be covered from Front till Back except during the pre-shipment stage.

Frequently Asked Questions

How much does an SME loan consultation cost?

The cost of an SME loan consultation varies depending on the financial institution or consulting firm providing the service. Some may offer free consultations, while others may charge a flat fee or hourly rate for their services. It is best to inquire about their pricing structure with the specific institution or firm.

In addition to the initial consultation fees, there may also be other costs associated with obtaining an SME loan such as application fees, administrative charges, and interest rates. It is important to carefully consider all costs associated with the loan before making a decision.

To find a reputable loan consultation provider, it is recommended to do thorough research and compare different options. Some ways to find a suitable provider include:

  1. Referrals: Ask for recommendations from trusted colleagues or other business owners who have previously used SME loan consultation services.

  2. Online Reviews: Check online reviews and ratings of various consulting firms or financial institutions to get an idea of their reputation and past experiences of clients.

  3. Industry Associations: Contact industry associations or organisations related to your business sector for recommendations on reputable loan consultation providers.

  4. Credentials and Experience: Look for consultants who have relevant credentials, such as a certification in financial consulting, as well as years of experience in working with SMEs.

  5. Transparency and Communication: A reputable loan consultation provider should be transparent in their pricing, processes, and communication. They should also be willing to answer any questions or address any concerns you may have.

When choosing a business loan consultant, it is important to consider their experience, reputation, and communication skills. Some key factors to look for include:

  1. Expertise: The consultant should have expertise in working with SMEs and obtaining loans from financial institutions. This includes knowledge of the loan application process, requirements, and potential challenges that may arise.

  2. References and Testimonials: Ask for references or read testimonials from previous clients to get an idea of their experience working with the consultant. This can give you insight into their success rate and level of satisfaction among clients.

  3. Communication Skills: A good business loan consultant should have strong communication skills, including the ability to clearly explain complex financial concepts and keep you informed throughout the loan process.

  4. Customised Approach: Each business and its financial needs are unique, so it is important to choose a consultant who offers a customised approach depending on your specific situation and goals.

  5. Trustworthiness: A reputable loan consultant should have a track record of honesty and integrity in their dealings with clients. This includes being transparent about any potential conflicts of interest and providing unbiased recommendations.
The duration of a business loan consultation may vary depending on the complexity of your financial situation and the needs of your business. Typically, an initial consultation can take anywhere from 1-2 hours, during which the consultant will gather information about your business and financial goals. Depending on the scope of services agreed upon, additional meetings and discussions may be necessary to finalise the loan application.

It is recommended to seek loan consultation when you are in the process of obtaining a business loan or when your financial needs change. This can include applying for a new loan, refinancing an existing loan, or expanding your business.

It’s also beneficial to seek consultation periodically, such as once a year, to review your finances and assess if any changes or updates are needed. This can help you stay on top of your business’s financial health and make informed decisions for its future growth.

When attending a loan consultation, it is important to come prepared with the necessary documents and information. This may include:

  1. Business Documents: Bring any relevant business documents such as financial statements, tax returns, and business plans.

  2. Personal Financial Information: The consultant may also ask for your personal financial information, including your credit score and income statements.

  3. Loan Details: If you have a specific loan in mind, bring any documentation or information related to that loan, such as interest rates and repayment terms. This can help the consultant give tailored advice and recommendations.
Yes, loan consultation can be beneficial in negotiating better terms for your SME loan. With their expertise and knowledge of the financial industry, consultants can help identify potential negotiation points and guide you on how to approach them. They may also have established relationships with various financial institutions, which can give them leverage in negotiating on your behalf.

No, a business loan consultation cannot guarantee loan approval. While they can provide valuable guidance and assistance in the loan application process, the final decision ultimately lies with the financial institution providing the loan. However, by working with a reputable consultant and following their recommendations, you can increase your chances of securing a successful loan approval.

It’s important to keep in mind that each financial institution has its own lending criteria and procedures, so approval is never guaranteed. It is important to stay informed and be prepared for any potential challenges that may arise in the loan process.