Business operation costs? Utility bills? Tuition fees? Purchase of any new equipment?
Then, your only hope might probably be is to apply for a loan. But with banks and private money lenders, which financing option suits your needs and leads to optimal convenience?
Every business owner in Singapore prefers traditional funding sources. As a matter of fact, they believe that banks are the only place to get a loan to fulfill their goals. But then again, there are other excellent alternatives to consider.
Why do startups and big companies want a bank loan? The number one reason is the low-interest rate.
Banks have a lower rate than other lending companies because they have access to funds from depositors and other clients.
Banks can access other financing sources like federal funds. Before, this financial resource was costly.
But things have changed today. In fact, it comes with an affordable and competitive rate.
Private lending companies, on the contrary, get funds from their investors, financial institutions, and banks as well.
Usually, the funds are available at a high cost. So, they don’t have a choice but to pass it on their loan rate. That’s why most businesses are afraid to work with a money lender in the country.
While banks lend out fund at a low interest, they can seem opportunistic. Knowing the rate of private lenders, they lessen their interest to catch people’s interest and stand out from the competition.
Conventional funding sources have different ways to make an income. Although a borrower doesn’t pay the additional charges from a loan, they don’t really care. They can acquire revenues from investments, banking fees, and more.
That’s not all! Banks add other expenses to the loan itself, from reporting requirements, covenants to other fees.
While they are not included in the interest, the overall cost will be higher than expected.
Private lenders approve an application within a few days or less. Just prepare your pocket because the interest is high.
But there is the best licensed moneylender Singapore that offers reasonable rate. So, spend time researching for a reputable expert, don’t take shortcuts, or seek assistance from a friend for referrals.
The majority of private money lenders also work with a first-rate reputation.
They exceed the standards in providing the right financing programs to their valued customers.
They also adhere to the industry’s highest guidelines and the best practices to guarantee individualized services and greater flexibility.
They understand their customer’s needs, provide comfortable communication, and establish long-term relationship.
So, which is better between the two funding sources? Well, it depends on your situation.
While you don’t have a good credit score or the potential to generate high income, private lending companies in Singapore has got you covered.
When you want to establish your credit history, they can also help. Just avoid multiple loan applications, always repay your loans, limit open credit facilities, don’t default on a loan, and meet a short-term loan repayment.
If you have a high score and are patient enough to wait for approval, the traditional financing sources are good to go.
