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We will help even if you have had past credit events or events in the form of foreclosure(s), bankruptcy(ies), late payment(s), collection(s), charge-off(s), etc., for Non-Prime loans.

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Our team of experts is well-versed in the money lending industry and will find a loan tailored to your specific needs. Your interests will be our number one priority.
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Sounds simple enough? Well, it should be!
Differences between an SME loan broker and a Direct Lender
What Is An SME Loan Broker?
IN SINGAPORE, an SME loan broker is also called by other terms such as mortgage broker, business loan broker, or business loan consultant. Regardless of the term, the services they render are generally the same.
A loan broker is essentially a middle man that sources the best loan deals to suit your business needs, advises on how to optimize your application, and helps you successfully secure a loan from a lender.
It is the broker’s responsibility to compare different available loans that are most suited to your business necessities. That said, it may not necessarily be in the broker’s interest to make the loan application on your account.
In short, having a broker is an extra step in the string of a loan application before you approach the recommended lender.
How Can An SME Loan Broker In Singapore Help You?
You might be wondering, why would you require a loan broker when you can apply for a business loan yourself?
Well, you can brush aside the need for an SME loan broker if you’re an established borrower with a strong network of possible lenders. Furthermore, if your need for a business loan is not urgent, you probably don’t require a loan broker to do the research legwork for you.
Some borrowers, though, may find a loan broker’s services required, mainly if they are new business owners or novices in getting any business loans.
Having an SME loan broker is akin to getting a consultancy service that would help identify your business needs, recommend various relevant loan options, and perhaps even advise on improving your company’s credit score.
As loan brokers typically maintain a strong connection with an extensive network of lenders, they would be in an excellent position to advise on the best loan options for your business needs.
Working closely with banks & private financial institutions keeps loan consultants in the loop about the latest available loan products or promotional business loan packages. They can, hence, assist with loan rates comparison from different lenders, a task that new borrowers may obtain challenging to do on their own.
Apart from loan offers, an expert broker with years of experience could bring to the table advice on issues such as:
- Laws & regulations that could legally defend you as a borrower
- Fees required by lenders, aside from interest rates, that you might not be aware of
- Required documents that could increase your chance of getting a loan
- Types of collateral required
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What Hiring An SME Loan Broker In Singapore Would Cost You
Getting that specialist input from a broker who has an eye across a large section of your market and industry will incur additional cost in your whole loan application process.
While some loan experts charge a flat fee for their assistance, others are commissions based on a percentage of the approved loan amount. The rate could range anywhere from 3% to 6%. Payment is usually made after a service is completed and the price is paid for by the borrower.
Loan brokers may also factor variables into their payments, such as your loan size, a financial position as an applicant, and the complexity of your loan application. They may impose a higher broker fee if you have credit score issues, difficulties in cash flow, or missing documents in your application, as such situations demand more time & work from the broker.
Some brokers might also ask for a non-refundable processing fee upfront to protect their position & ensure your commitment. But, this is not a standard practice amongst loan brokers.
SME Loan Broker in Singapore | |
---|---|
Role | A middle man between borrower & lender |
Responsibility | Consultancy Source & advise on best loan deals for the borrower. Help to compare interest rates of various loans |
Charges | Usually, no upfront fees charge 3% – 6% commission of approved loan amount (Some may utilize a flat fee for their services) |
What Are Direct Lenders?
Direct lenders generally fall under two categories: banks or private financial institutions.
While an SME loan broker in Singapore gives consultancy on the business loan applications, it is the lenders who have the resources to provide the funding you need.
They have straight access to a wide range of loan products to offer. Conversely, loan brokers can only guide you on the availability of these products & how best to apply for them.
Banks
In assessing your loan application, banks would scrutinize your personal and business credit score, business plan, financial projections, & revenue performance.
You can expect a smooth-sailing loan approval process if you have built a trusted relationship with banks & have no issues with your business’s cash flow or credit score.
Though, do expect hiccups in the loan application if you’re in a complex situation such as:
- Having a lot of loans under your name
- Having poor personal & business credit rating
- Not reaching minimum requirements set by the bank
Private Financial Institutions
Private financial institutions are more flexible in evaluating a loan application. They are usually permitted to provide you with the extra funding, even if your company is less than a year old. For example, private financial institutions such as Capital provide financing for at least ten months for companies in operation.
In contrast, you would find that banks might not even acknowledge your loan request if your company is new with no visible financial history or revenue performance to back the application.
SME Loan Broker & Direct Lenders: When Should You Approach Them For Business Loans?
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.
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About FR Capital
FR Capital is a Singapore consultancy firm that helps SMEs to secure business loans from banks and financial institutions. We concentrate on SME finance, and through our expertise and network, we help clients secure funding with low-interest rates efficiently and hassle-free.