If you’ve recently set up shop in Singapore, you probably understand the challenges of establishing and running a new company. There’s suddenly a plethora of bills to pay and an array of equipment to purchase. As a budding businessperson who desires to operate a flourishing company, you ought to make sound decisions concerning your business.
Getting a business loan is a great way to finance your company. However, you have to be conversant with the nitty-gritty aspects of acquiring a smart loan from a lending institution. You can now get a business loan in Singapore quickly and easily.
Here are 3 tips to flourishing your business with a business loan in Singapore:
- Have a remarkable credit score
Since your startup company doesn’t possess any history or track record, lending institutions will look at your personal credit history before lending you a business loan. Your credit score will significantly affect the loan amount you are awarded as well as the rate of interest on your business loan. There are a number of precautionary procedures you can implement to improve your individual credit score. They include:
- Reducing any credit card debit or outstanding loan
- Paying your personal bills on time
- Checking and fixing any errors that might exist on your credit report
- Responsible utilization of credit cards. Any balance should be entirely paid off each month
- Limit the frequency of your credit inquiries
Don’t fall into the trap of hiring credit counseling firms that promise to increase your personal credit score. Most of them are scams that simply want to have a run for your money.
- Highlight your previous management and career experience
Using the wise words of Julius Caesar, experience teaches all things. It’s especially true for individuals looking to finance their startup companies using business loans. Any potential lender will first look at your past experience before assessing whether to award you a loan or not. If your experience in industry, career or management is rock-solid, you’re more likely to be considered for a loan. As you submit your loan application, don’t forget to present a resume that highlights all relevant experience pertaining to your career and business management practice.
Most conventional banks will want to see at least three years of industry experience. If you barely have this kind of experience, your general management skills could come in handy. Maybe you’ve tried running a small business or you were selected team leader in a previous job. Use your strong points to create a remarkable resume.
- Prepare an exquisite business plan
If you’re serious about starting a company and acquiring a business loan, you need to construct a solid business plan. This plan basically acts as a roadmap describing the direction your business intends to take and how well it will fare over the next couple of years. In this business plan, discuss the essentials first: give details about the company’s overview, ownership & management, market analysis, your marketing plan and financial projections. Having a good business plan will put you a step closer to earning a sizeable business loan.
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