6 Practical Tips to Get Your Corporate Bank Loan Sanctioned in Singapore
1. Your Credit Bureau Singapore Records (CBS) Should be Good
It’s essential that you as a director of your company maintain a good credit rating on the Credit Bureau Singapore Records (CBS) records. These records will show the lenders how prompt you are in repaying your loans and also how much loans you have at present. Thus the lenders can get a better idea of whether your organization has the ability to repay the loan. If the record is bad, the impression of the bank will be negative and your chances of getting your loan approved will be reduced.
2. Your Business Should be Incorporated for Over 6 Months
Financial institutions find it difficult to evaluate a new company which is around only for a few months. So, you should make sure your company has been around for over six months before applying for a corporate bank loan Singapore if you’re a startup. The long age of a business makes financial institutions more confident because the longer the age of the company, the higher is its perceived stability.
3. Having Live Projects
If there are projects in your hand, it’s a clear indication that you are still in business. It further means that your company is able to generate income. This will provide your lender bank the confidence that you’re capable of paying back the loan amount.
4. Maintain a Good Bank Balance
Maintaining a good bank balance can potentially increase your odds of getting your corporate loan approved. You just have to maintain a bank balance in your company’s bank account and it will give a higher confidence to your lender bank that you have a capability of repaying the loan.
5. You Shouldn’t Have Got More than 2 Bounced Cheques for the Past 6 Months
Having bounced cheques naturally creates a bad impression because it means that your company is not being able to maintain an adequate balance in your corporate bank account. Always make sure you have adequate balance in your bank account before issuing any cheques.
6. Hire a Loan Consultant
Your job is to do business rather than considering loans and their ins and outs. Therefore you need a professional who can help you out in the loan matters. They have extensive knowledge and experience in the field of bank loans and can guide you when you’re in doubt.
A corporate bank loan can give a powerful boost to your business in Singapore. Even world-famous businesses like Nestle and Johnson & Johnson may need one. Follow the above tips to make sure your loan gets approved.