Options SMEs Could Consider In Taking Out Business Loans

Payday Loan Singapore

Getting a loan as a small business owner in Singapore can be accomplished in a lot of ways, some more advantageous than others. Certain licensed money lenders in Geylang provide various loan options that favor small businesses. Some of them are listed as follows.

Payday loans

A payday loan is specifically a short-term loan designed to be paid back within a timeframe of two to three weeks. A lot of people think that this loan is designed for salary earners since a payday loan can usually be paid back by the time one’s next payday rolls around. Payday loans are really not designed for anything longer than that, and the reason is quite simple: they would be too expensive for the long term.

But as a small business owner, it’s necessary to know that constantly rolling a payday loan onto the next month and taking out payday loans can become extremely expensive. Instead of dragging out repayment for a short-term loan, opt for a monthly installment loan that can be paid back over time instead. Also, there are better options for any instant loan available out there, even for individuals with a bad credit rating or credit history.

Guarantor loans

These are types of personal loans in Singapore where a friend or family member can act as a guarantor. So, as long as they have a good credit rating, they can be the backer of a borrower’s loan application. For small business owners in Singapore, this type of loan can be significantly cheaper as compared to a payday loan with a loan tenure of up to five years.

With reliable money lenders in Singapore, these types of loans make for very affordable lending.

Borrowing from associates

Oftentimes, this is by far the cheapest way of borrowing money when compared with other types of commercially available loans. Borrowing from business associates that have built up trust with your brand over the years can end up as a much better choice since they may offer charge lower rates as compared to other options.

There’s a real reason and purpose behind you taking out a loan. Clearly state down the repayment sum and how much you can afford to pay back, be it per week or per month. Make sure to be confident in making repayment on time because the last thing anyone wants is to have business associates lose their trust in your brand.