Basic Tips On Loans And Money Lending In Singapore
Loans are very important. They enable us to accomplish many things that require substantial amount of money. This includes paying college fees, building a house, buying a car and many more. This brings us to the different types of loans. For example: cash loans, business loans, personal loans, real estate loans and many more.
However, getting a loan is not a walk in the park. There are certain conditions that creditors will expect you to fulfill.Creditors may include banks, individual lenders and micro-finance institutions.
These Are The Conditions
- You should be having enough assets which can act as collateral in the event that you fail to pay your cash loan, business or any other type of loan that you might have taken. Banks used collateral as security to avoid losses especially when one defaults paying his/her loan.
- You should prove that you have solid cash flow. This mainly applies to business owners who want to apply for business loans in order to expand their business. The cash flow should be enough to service the loan.
- Track record of profit making. No money lender will want to risk his money. This is why it is sometimes challenging to get a loan if you have no established or existing business. Therefore, if you are starting a new enterprise, you will be required to provide a record of profitability as well as success in related business that you have engaged in before.
In case you find it challenging to get a loan from banks due to limited number of assets, you can still get it from relatives who know and trust you. They can give you personal loans or business loans so that you can start your small business ventures.
However, loans from individuals may not enable you finance big development projects like building a house. You will need to apply for real estate loans from the bank or other lending institutions.
All types of loans charge interest. Interest rates vary depending on the amount of money borrowed and payment duration.
Furthermore, there are certain things that you need to do in order to be successful when applying for loans. You need to have a business plan, clear your debts and consult an expert.
In conclusion, you are advised to adhere to the above tips when lending money or applying for loans. This will prevent you from making a loss. You will also have a successful loan application.Posted on: March 24, 2016, by : papercut sg