Each company has its unique use for a business loan.
The advantages of getting an SME loan broker or applying straight to direct lenders depend on the nature, age, and performance of your company,
When To Approach An SME Loan Broker
SME loan brokers have an extensive network of lenders that give various loan packages.
Some company owners might be irked by the thought of hiring an SME loan broker in Singapore due to the extra step and cost of a business loan application.
Though, there are some circumstances in which you would find that getting the advice of a loan consultant might be necessary:
- You Lack Experience In Applying For Any Business Loan
A loan broker would assist you in giving an unbiased perspective on the pros and cons of multiple loan options.
- Your New Business Has No Substantial Revenue Performance
A loan specialist has the responsibility to guide on how your company could improve its chances of securing a loan, despite the lack of financial history & business plans
- You Don’t Have Time To Scout Around For The Best Business Loan Choices
Outsourcing the search to an SME loan broker saves you time. You can focus on your business operations while they consolidate suitable loan choices to match your business needs.
- Banks Have Declined Your Loan Applications
A loan broker could advise on an alternative strategy that could be helpful, especially if you are in dire need of extra funds.
When To Approach Direct Lenders
Not every company would reap the benefits of getting an SME loan broker in Singapore. Direct lenders can offer cheaper rates, & you wouldn’t require to set aside a budget for a middle-man. If your company meets the following, approaching a direct lender may be a better option.
- Your Business Has An Established Financial History
Typically, businesses with an established financial history & a proven track record would have forged a strong business relationship with direct lenders over the years.
- You Have Strong Personal Credit & Business Credit
If your company is new or doesn’t have an excellent credit history, an SME loan broker might add value. Otherwise, they may not be able to provide insightful advice to your application.
- You Have A Solid Business Plan & Financial Projections
Direct lenders are familiar with going into business plan operations, so they’d be able to immediately recommend a loan from their range of product packages if you have a clear business plan.
Are you applying for a business loan? Reach out to Capital to take care of your business financing needs today.