6 reasons why Singapore 's Small medium enterprises (SME) take up a business loan
It is no secret that the economy is tough. Unemployment rates have put the globe on a huge wheel, and many companies have met an untimely bankruptcy, while some are on the edge of extinction. In today’s continuously fluxing economic climate, the riddle of starting and managing a small business is getting diificult. Nevertheless, the less fainted hearted are still thriving. In fact, it is surprising that some Singapore’s small medium enterprises have defied the test of the climate change and are fighting is to the bitter end. What is the secret? Below are 6 reasons why SME loan Singapore is answering the dreams of many small business owners.
1. Low rates
What is particularly beneficial about taking up a business loan in today’s economic environment are the unbelievably low rates. In the wake of the recession brunt, the …show more content…
True, a business that wishes to expand might be having enough cash already, but taking up a business loan helps a business maintain its operating cash flow, shielding them from the negative effects of unexpected expenses. This way, it is even easy to repay the loan from the profits accrued from the expanded business.
6. A relationship with a lender is invaluable
Having a defined and well-oiled relationship with a bank or any other lender is priceless. Once a trusted relationship is in existence between an SME and a lender where the lender has confidence your abilities to repay a loan, they will be more willing to cash out as your business grows. If there is a chance a business will need a greater amount of loan in the future, it is imperative to start borrowing in small amounts; sometimes even if the business is not in a dire need for a loan. It is unlikely that a lender will give you $60,000 if you have not showcased the ability to repay $6, 000.
It is no secret that the economy is tough. Unemployment rates have put the globe on a huge wheel, and many companies have met an untimely bankruptcy, while some are on the edge of extinction. In today’s continuously fluxing economic climate, the riddle of starting and managing a small business is getting diificult. Nevertheless, the less fainted hearted are still thriving. In fact, it is surprising that some Singapore’s small medium enterprises have defied the test of the climate change and are fighting is to the bitter end. What is the secret? Below are 6 reasons why SME loan Singapore is answering the dreams of many small business owners.
1. Low rates
What is particularly beneficial about taking up a business loan in today’s economic environment are the unbelievably low rates. In the wake of the recession brunt, the …show more content…
True, a business that wishes to expand might be having enough cash already, but taking up a business loan helps a business maintain its operating cash flow, shielding them from the negative effects of unexpected expenses. This way, it is even easy to repay the loan from the profits accrued from the expanded business.
6. A relationship with a lender is invaluable
Having a defined and well-oiled relationship with a bank or any other lender is priceless. Once a trusted relationship is in existence between an SME and a lender where the lender has confidence your abilities to repay a loan, they will be more willing to cash out as your business grows. If there is a chance a business will need a greater amount of loan in the future, it is imperative to start borrowing in small amounts; sometimes even if the business is not in a dire need for a loan. It is unlikely that a lender will give you $60,000 if you have not showcased the ability to repay $6, 000.