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The Benefits of Business Loans for SMEs

Close-up of 2 SME owners in grey suits shaking hands after discussing taking a business loan, as another looks at a tablet
Close-up of 2 SME owners in grey suits shaking hands after discussing taking a business loan, as another looks at a tablet

Sharp business owners in Singapore see opportunities where others see adversity. Yet, all too often, finance is a limiting factor, particularly for small and medium enterprises (SMEs) or new startups with big ideas but small budgets. In such cases, a business loan can make the difference between a flourishing or floundering business.

Here are some of the key benefits of taking an SME loan in Singapore:

It is a great way to supplement your finances

There are already some great financial grants in place for business owners in Singapore, such as the SMEs Go Digital programme, which is aimed at companies that use digital technologies to grow their business. However, sometimes, a business requires more help, and SME loans are great for a much-needed capital injection. This can be used to build a presence on e-commerce platforms, recruit staff, buy equipment, and meet other important business needs.

Besides, the government grants often require startups themselves to raise and commit a substantial amount of funds, which may be difficult for cash-strapped individuals, making an SME business loan a great alternative.

It has a swift approval process

Traditional business loans offered by institutions such as banks require stringent checks and extensive approval protocols. Some of these include having an operational history of at least a year and a minimum annual revenue of $300K. They also take 2-4 weeks for approval, making it unsuitable for SME owners trying to make use of a window of opportunity to seize a lucrative business opportunity or limited-period deals such as discounted rates to upgrade business infrastructure.

In contrast, taking an SME loan from a licensed moneylender in Singapore only takes 2-3 days on average, depending on the loan amount. All you’ll need are some straightforward documents to speed up the process:

  • Your company’s BizFile details
  • Your company’s bank statements from the last 6 months
  • A copy of the ICs (both front and back) of all directors and shareholders
  • Your company’s financial reports from the last 2 years
  • All directors’ and shareholders’ Notices of Assessment (tax filings)
  • All directors’ and shareholders’ credit reports from CBS (Credit Bureau Singapore)
  • Your CPF contribution to staff in the latest month (if applicable)
  • Your business’ tenancy agreement

Business loans from licensed moneylenders in Singapore start at S$10,000 and go up to S$300,000. They allow startup owners to focus their efforts on networking as well as on growing and streamlining their business. Without a business loan, many of Singapore’s entrepreneurs may not have the funds they need to beat the odds and succeed in the competitive business scene.

Looking to jumpstart your business today? Contact us at R2D Credit to find out more about our SME loans for Singapore-based companies.

Disclaimer

The information provided on our website is for educational and informational purposes only and is not intended to be a substitute for legal or financial advice. While we try to ensure that information on this website is accurate, we do not warrant that the information will be free from error. We shall not be liable for any loss or damage that may arise from the use of this website.

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