As a business owner, for sure, you know there are things your brand needs, but you cannot afford. Whether they are pieces of equipment or a new place for your next branch, you would need to use a lot of money for you to get them. Unfortunately, money is not something that easy to come by. It is something you must work hard for you to get. However, that does not mean you have to give up on these essentials. If your brand is indeed in need of financial support, you can get an SME loan instead. That is better than doing nothing to improve your business at all.
For an SME loan to happen, there are two parties involved. The lender and the receiver. When you place yourself in the shoes of a lender, you would know that they do not carelessly lend money to anyone. They would lend to those who can pay it back. That is why before you seek a working capital loan for your SME, do your homework first. It will help you understand if you are ready to get one and avoid ending up in a large sum of debt. So, here are the questions you need to take into account first.
What questions should you ask yourself when getting a working capital loan for your SME?
Do you qualify for an SME loan?
Before you seek a lender of SME loan in Singapore, you must know first if you qualify to apply for one. You see, lenders do not just lend what they have to anyone. They need to make sure that they will be lending it to someone reliable.
For you to be the person they are looking for, you must meet their criteria. Make sure to provide everything they need before you submit your application.
How much money do you need?
“As much as I can get”. If you are thinking about this phrase, forget it. You would not be able to get an SME loan. You see, lenders want a solid answer on how much money you need. That way, they could weigh their decision whether to lend you or not. Moreover, if you have a set amount, the lender would know already that you have a plan in mind of where you would be using it.
So, think about it thoroughly, how much exactly do you need for the plan you have in mind? To figure out the answer, make sure to weigh the pros and cons.
What will you use the extra working capital for?
As mentioned above, you have to know your reason why you would need extra working capital. For what purpose would you use it if you obtain one? Would that help you improve the productivity of your brand? Be sure you know the answer since this will help you what to say when the lender asks you this question. Even better if you could provide a proposal plan when they ask you this one.
Can you pay back the SME loan that you will be getting?
Before you can get any loan, you have to make sure that you can pay it back. Otherwise, you would end up in a large amount of debt. Of course, this kind of situation would not be great for your business. So, think, can you return it? Or do you have to ask others to pay it on your behalf? If yes, then make sure to show the lender that you can.
Do you have the documents you need for an SME loan that you want?
The process of working capital loan for your SME depends on how you prepare all the documents you need to submit. If you attach everything that the lender told you so, your application would only take a while. Instead of waiting for months, you would be able to get your SME loan within a few weeks. Sometimes, days if you indeed satisfy their qualifications.
Listed below are what most SME loan lenders usually ask their borrower applicants.
- Your financial statements
- GST declarations
- Certification of ownership
- Business proposal (explanation on how you will use the SME loan)
- Copy of your credit history
- Marketing and sales projection (estimate profit that you gain in the future)
- Details about your affiliation
How likely can you get approval?
Like most things, rejection is painful. So, better prepare yourself when you apply for anSME loan. That is why it matters to estimate how likely you can get approval. To do that, you have to check your credit history and settle your unpaid debts. Doing so would help you gain their trust. If you did it right, then the process of your application will go smoothly. So, better double-check all the documents before you submit them.
Are you ready to get a working capital loan for your SME?
It might seem silly to ask yourself this question now, but this would help you make the right decision. You see, taking an SME loan is not an easy affair. It could impact your business if you carelessly apply for a loan. So, before you take one, ask yourself, does your business need it? If so, in what way? What would you do if you get one? How will you pay it back?
If you have all the answers to all of these, you are ready to get an SME loan.
Do you want to get an SME loan right away?
If yes, then get them from TT Media. They offer different types of working capital loan for SME that might suit your needs. So, what are you waiting for? Visit their website today and find out which SME loan you can get right away.
Did you find this article helpful? If that is the case, make sure to share with others who also want to get an SME loan. That way, they would know if they are ready to apply for one.