How Singapore SME Loans can help a business grow and survive through down times -
Singapore is one of the leading financial hubs in the world with many businesses setting up their companies here. Singapore is also usually chosen as headquarter for the region when it comes to setting up a presence in South East Asia. Singapore is well positioned with strong financial backgrounds and talent to better manage the funds that will be raised locally to the region to grow and do more business.
Most Singapore businesses are therefore well positioned to receive good funding support for their expansion purposes and also for cash flow requirements that can help them grow their revenue numbers and at the same time invest into assets that can help to improve production.
For bigger companies, there are many options for funding, you could either get it through listing your company or you can raise funding easily through loans from institutions that will be chasing to give you the funds at a good rate.
For smaller companies like those SMEs in Singapore, things are not that easy and as clear cut. When it comes to SMEs, the risk is much higher for financial institutions and this makes for a harder time to get funding done for such SMEs. But we all know that SMEs are usually the life blood for any economy. Even more so for Singapore where the bulk of employment and also Gross Domestic Product (GDP) comes from the Small and Medium Enterprises.
Therefore to help the growth of Singapore SME Loans to help SMEs to grow and prosper. The government has worked with financial institutions to provide the Working Capital Loan that is supported 50% by the government so in the case of default from the SMEs, the government will cover 50% of the cost. This allows for banks to reduce risk and therefore be more open to providing funding for SMEs.
SMEs can also get funding from banks directly through their business term loans that come at a rate of about 7-9% effective interest rates and this is great for businesses that want to expand their businesses.
SMEs that own assets can also put their assets down as security to acquire equity loans at much lower effective interest rates as compared to getting unsecured options.
For those businesses that do not have an idea of how to go about getting their bank loans arrange, you can consider doing this bank loan arrangements through a Singapore SME Loan Broker that has the right experience and also necessary contacts to get the work done for you. Loan brokers will contact the banks that offer the best rates and work closely to ensure that rates and fees are kept at the lowest for their clients.
The Singapore Loan Consultants will also work closely to ensure that you can maximize the loan quantum that you get and lowest fees possible. For those that wish to take advantage of low interest rates for loans to expand their business, you should speak to Avant Consulting consultants.