Excellent Tips for Getting Your Corporate Bank Loan Approved
While starting a business in a country like Singapore, it’s quite natural that you may need a loan, because you can’t always rely on your income or savings to cover costs. However, while taking a loan, the borrower is always worried if their loan will be passed or not. Here are a few tips for applying for a loan properly and making sure it gets passed.
Your Loan Application
If you want to take something like Singapore corporate bank loan and want it to be approved fast, make sure you give the following information to your lender.
The reason for which you want the loan: This is because your lender will be interested in knowing whether you can run your business profitably and pay the loan back.
The amount: The amount will help your lender decide how risky the loan might be for them.
Urgency: Whether you’d need one big amount or multiple payments? When will be the first and final payment dates?
Your method of repayment: This will help determine whether your business will have the cash flow or not to repay the loan, and also the terms and conditions of repayment.
The risk to the lender: Large-sized loans are more risky to the lender and hence tougher to get approved. The same is true about unsecure loans and loans with low interest rates.
Another important factor is to remember that you will be competing against other people who also want to borrow money. In that case, you’d have to stand out, show that your business will be profitable and improve your odds of getting your loan approved.
Apart from this, you’ll also have to submit specific bits of information that may differ from lender to lender. These may include:
- A detailed business plan if you’ll be starting a new business
- Your contact details
- The age, size and industry of your business
- Your personal and business’s credit history
- Financial statements and projections of cash flow for your business
Tips for Getting Approved
Remember that approval of your loan mainly depends on how well your lender is convinced that you’d be able to repay the loan. Therefore, you should:
Fulfill the Criteria: Every lender has some eligibility criteria. Make sure you meet them before applying for the loan.
Plan for the Money: You shouldn’t randomly declare that you’d use the money for business. Your lender would like to know how exactly you’d utilize the money. Vague plans may result in rejection of your application.
Have Necessary Documents Ready: Application with all important documents has higher chances of getting approved and lower rates than those with no enough documents.
So, have you started preparing for applying for a corporate loan?