Lending Bee® Offers Business Loans At Easy Approval For All Industries.
Bring your business to greater heights with Lending Bee’s unsecured business loan.
Lending Bee® Business Financing is Different.
Doing a business requires one to be competitive and to have quick response. You need to most updated tools and enough resources to carry out projects well. In certain situations, extra funding may be needed. It may be difficult to secure a large sum of money in a short time period and traditional lenders often are unable to approve of a loan fast enough. This is where Lending Bee’s Business Loan comes in to help your company.
Our business loans are unsecured and companies are able to borrow any amount up to $100,000. We understand how competitive the market is and are always willing to help any business in Singapore. Some financial institutions often obfuscate the loan process and terms, making it a challenge to secure business loans for entrepreneurs.
At Lending Bee, we are transparent about our terms and offer fair and affordable interest rates. Our professional financial consultants will elucidate our financial products. Understanding the term “time is money”, we designed an online application system and an online account system to expedite our loan process. Getting a loan has never been easier and you can even check on your loan status and repayment amount online.
Our loans are easy to qualify and the application can be completed online within minutes.
What Are Business Loans?
Business loans are commonly taken by startups, SMEs and MNCs to help with the company’s finances and progress. Business loans are issued to businesses so that they can use them for business related purposes. Once the loan is approved, it is disbursed to the business and is to be repaid over a specific period, at a decided interest rate.
In Singapore, business loans are provided by both traditional lending institutions as well as other types of financial institutions, including licensed moneylenders. Each moneylending institution offers different kinds of loans and they each have their own set of eligibility requirements and interest rates.
Lending Bee’s business loans are quickly approved and can be customized to suit every company’s needs. Our loans are unsecured so you don’t have to worry about providing collaterals.
Each business owner approaches the lender depending on his or her needs. The loans can be used for the following:
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7 Types Of Business Loans in Singapore
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Unsecured Term Loan
This is a loan that is often used to secure working capital.
The amount is given in a lump sum and the amount can be between $1,000 and $100,000. This business loan is unsecured and repayable within 36 months in equal monthly instalments.
SME Micro Loan
The micro loan is offered to SMEs.
It is a government assisted funding scheme for local SMEs that have an annual revenue of under $1,000,000. The maximum loan amount is up to $100,000 for companies with revenue no more than $100,000 with less than 10 employees.
SME Working Capital Loan
Government assisted loan facility for SMEs.
This is another government assisted loan facility for SMEs. It was launched in the middle of 2016 and the business may be offered a maximum of $300,000.
Finance the purchase of materials and inventories.
This is a revolving line of credit that can be used to finance the purchase of materials and inventories. Trust receipts between ninety and one hundred and twenty days can be issued. Letters of credit are often issued to suppliers overseas.
Business Property Financing
To purchase industrial and commercial properties.
This is a mortgage loan that is expended to the business to purchase industrial and commercial properties. For some financial institutions, the properly may also double up as collateral, making this one of the cheapest loans available.
Purchase fixed assets including equipment and machinery.
The funds from this loan can be used to purchase fixed assets including equipment and machinery. Business that are involved in production will find this loan very helpful.
A successful entrepreneur understands the need to focus on the big picture to drive business growth. They have good acumen, insights and funding.
How Business Loans Can Help You
There are several different ways that business loans can help your business. In Singapore, it is actually not uncommon for companies to take on business loans. Here are three scenarios where they may be of help.
Every business needs to have enough working capital to carry out its day-to-day activities. A shortage can mean that the payroll is not met on time, bills were going unpaid and debts were not being serviced.
All these do not board well for the business. Taking out a loan to tide the business over until the receivables come in can go a long way to help the business owner manage in the meantime.
One of the common challenges small business run into is having orders and not having enough money to purchase the necessary products.
A good example would be an interior design firm and contractor, where they may need to make payment for the renovation materials first. They usually only receive the full payment at the end of the project.
With the help of a business loan, they will be able to service the order first and pay it off when the client makes payment.
If the business needs to expand into a new or bigger property, a business loan can come in handy.
Perhaps the business is getting better and the company is taking on more orders or clients. A larger workspace is needed and moving to a new area will increase productivity.
Coming up with a large amount of cash for the rental or property purchase is not easy. Lending Bee’s business loan will be able to help the company purchase commercial or industrial premises and expand its business.
It may be tougher to get business loans from traditional financial institutions due to their strict criteria and long processing time. Worry not, as Lending Bee is here to help.
With our advanced online application system and quick response, you can get your business loan within 24 hours.
Getting A Business Loan To Enhance Your Business
Financial institutions provide businesses with loans that are used as working capital to grow the business. In most cases, the business must have been operational for a minimum of one year before it can qualify for a loan. The business is assessed for its credit worthiness and how much debt it can carry comfortably. This assessment enables the lender to figure out the optimal amount that the businesses qualifies for.
Depending on the loan amount and the terms of the loan, the tenure can be anywhere between 1 and 5 years. It is important to note that whereas traditional lenders can be quite rigid where loan terms are concerned, other lenders such as licensed moneylenders are quite flexible. This makes licensed moneylenders the lenders of choice especially for small businesses and startups.
Business Tips and Advice
Why get a business loan from a licensed moneylender?
Getting a business loan from a licensed moneylender is common in Singapore. Here are several benefits that prompted business owners into working with licensed moneylenders.
1. Accommodation of business needs.
Licensed moneylenders are very good at accommodating the needs of their clients. Since they are private businesses, they can listen to their clients’ needs and tailor-make the loan offering and adjust terms based on their needs.
2. Local and foreign businesses.
A licensed moneylender is able to give loans to both foreign and local businesses at a good rate. Aside from fast cash disbursement, they offer reasonable and affordable loan rates.
3. Eligibility requirements.
It is easy to qualify for loans from licensed moneylenders. They generally have a lower threshold when it comes to eligibility requirements. Most of them do not have requirements for minimum annual turnover among other such things.
4. Easy application process.
The application process has been simplified significantly, making the process quick. One can simply apply online, put together the required supporting documents and turn and wait to hear from the lender. In fact, the required documents are reduced to the bare minimum unlike what a bank would ask for.
5. Fast approval.
Approval is generally fast-tracked when dealing with moneylenders unlike if the business was dealing with a bank or another traditional lender. This means that you will be getting the money as urgently as you need it, if you provide all the required documents in a timely fashion. You will be able to get the money as soon as your application is approved. Most business owners are able to get the money within a day when all documents are submitted.
6. Evaluating the business.
The evaluation of a business is carried out by business experts employed by the lender. They will evaluate the business respectfully and offer the amount that they believe the business can handle with ease. A licensed moneylender will never push a business owner to take more money than is needed or than the business can afford to pay off without strain.
7. Tailor-made loan terms.
It is important to note that licensed moneylenders will usually work with you to come up with loan terms that work well for the business. If you need a longer tenure or would like to discuss the interest rates offered, just speak up.
8. Lots of flexibility.
Tough times come to all of us. If you fall on hard times and need to have the loan restructured, speak to the licensed moneylender instead of trying to hide. You will be surprised to find that the moneylender will often work with you to walk with you in these hard times.
8 tips to getting the business loan you need
Prior to putting in a loan application, it is important for you to make sure that you have the best chance of getting the business loan. Here are some tips that can help you make the best of loan opportunity.
1. Shop around
Most people only think of traditional banks when they want a business loan. Unfortunately, the high interest rates, stringent requirements, and complex application processes mean that only a small fraction of applicants get the loans. Look around and talk to licensed moneylenders as well. The goal is to secure a loan with ideal terms for your business, or at least the very best terms you can find out there. It is a good idea to start online as you look at the various requirements they put on their websites.
2. Review loan details
Most people decide based on marketing products but in truth, that may just be a gimmick to bring you in. Even though the low interest rate or interest free repayment period may grab your attention, be sure to look deeper. Find out what the charges and fees are, read the fine print and find out about all the conditions of the loan, and find out what things would cause the lender to call in the loan. If it still looks too good to be true, have the lender separate the costs of servicing the loan and lending the money to you. However, do note that the licensed moneylenders in Singapore strictly follow the rules set by the Ministry Of Law and are usually transparent about their financial products.
3. Honesty is the best policy
It is not uncommon for small business owners to present an overly optimistic view of their business. It is better to become completely transparent, instead so that the lender helps you. This means presenting the truth about your cash flow, other debts and loans that the business has, business forecasting, credit history and trading position. The lender will still carry out due diligence on the business, so it is better to be honest than be found to be a liar by the lender. Painting a rosy picture where one does not exist does not serve you right.
4. Make the most of the assets you have
One of these assets is invoices that need collecting. You can leverage these invoices to get a cash advance from invoice factoring lenders. When the money from the invoices comes, it can be used to pay off the loans complete with the interest and fees.
5. Professional advice
Professional financial advice can really help. It gives the benefit of an objective voice of someone on the outside looking in. They will be able to look at the numbers and give you the advice on where you can get the loan that you need. In addition, they can help you find ways to optimize your profit and loss accounts, so you can maximize profits and minimize taxes. This may help you lower the figure you need to take out as a loan.
6. Become self-aware
This means seriously evaluating the business from a lenders point of view. You may need to do a quick credit check to ensure that you are looking good. If something needs to be removed from your credit report, have that done prior to speaking to the lender. Also, consider debt-to-equity ratio. If the debt is higher than equity, this generally means that the business is riskier to invest in. But if the equity is higher than debt financing, then it is safer for the lender.
7. Interest rates
This is the largest cost of any loan, so it will serve you well to find out how much you will be paying in interest. That said, this should be considered alongside other factors such as loan terms, fees and charges, loan tenure, and the like.
8. Repayment terms
This is a critical factor because you want to make sure that the business can pay off the amount from month to month. Consider the loan tenure and the monthly repayment amount. The longer the term, the smaller the monthly repayment amount and vice versa. Also, find out if there are penalties for early loan repayment and what the penalties are for late payment. These may seem like small things initially, but they can cost you a lot of money.
Prior to putting in a loan application, it is important for you to make sure that you have the best chance of getting the business loan. Here are some tips that can help you make the best of loan opportunity.
6 reasons why successful SMEs take business loans
Loans have received a bad reputation over the years and especially in relation to SMEs. Small business owners are wary of debt financing because of the stories and misconceptions they’ve heard. Many only think of taking loans when they are experiencing financial difficulties, and even then it remains an uphill task because it means accepting that they’re not doing well. Only after that can they prepare solutions to help the business.
Taking up loans isn’t only for the cash strapped business owners. It is actually for those that aren’t risk-averse. Large companies with big brands under their belt also take loans but for the right reasons.
Businesses are growing and for growth to happen effectively, it usually requires money. Any excess money in business will most likely go into building its capacity and generally growing it in whichever way that is relevant.
It is possible to expand using regular cashflow, but the speed at which it will happen may not be appealing. Taking a loan gives an instant cash injection into the business thus increasing the speed at which expansion can occur. It will also ensure other monies go towards operational costs thus keeping the business expanding and running.
2. Capitalizing on business opportunities
Sometimes offers come up and the business could use that particular item being offered at a reasonable price. A loan comes in handy to acquire such things, especially if it is a capital-intensive item required such as machinery or a vehicle.
A business must have an inventory before it can make any money. Inventory comes in large amounts for it to be economically viable and the situation is worse if inventory is for seasonal items.
An inventory loan will help keep in step with trends so that business continues throughout even if previous stock for a different trend hasn’t sold out yet. It also helps to keep cash flow intact.
4. Eliminating cash flow issues
Cash flow can be a big problem for small businesses. With a stock that isn’t moving fast enough or clients that haven’t paid for goods yet, it can be difficult to have steady cash flow. Having enough money on hand is important because items that require regular payment such as utilities, rent and staff depend on it.
A business can solve this problem with a short-term loan to ensure operational costs are catered to as required. Money must be flowing in a business to keep customers and all relevant stakeholders satisfied.
5. Building credit worthiness
Qualifying for a large amount of credit requires a good payment history. Creating a good history involves starting from a small loan and paying faithfully to remain in good standing with the lenders. With time, lending institutions develop confidence in the business person and are more willing to take a risk and give them a much larger loan if requested.
SMEs will always need more financing along the way, and this is an excellent way to ensure they don’t miss it. Doing this responsibly will increase business credit score thus improving chances for the future.
6. Cheaper compared to equity financing
Many look at equity financing as a better option compared to debt financing but this is only on the surface. While the risk is reduced and transferred to the investor from the owner, losing a part of the business interferes with things. Management decisions are no longer the preserve of the owner because most investors like to have a say on decisions. Losing both a stake and autonomy can be very frustrating. The business will have less debt and more cash at its disposal, but the price may not be worth paying.
Debt financing provides tax benefits since interest is tax deductible. The amount of taxable revenue automatically decreases. Paying out dividends is not tax deductible meaning the amount remains the same. Loan payments rarely fluctuate as compared to equity prices. This makes it easier to plan for expenses and future payments.
Debt financing is great but can easily be a pitfall if not correctly handled. It is vital that businesses keep their debt at reasonable levels. Taking out too many loans can become difficult to pay back putting the business in trouble. Borrowing wisely is crucial and so is spending the money wisely after borrowing.
Where the money will be used to buy items directly or indirectly involved with the success of the business, business owners must calculate the projected return on interest and ascertain that it is worth investing in. Most importantly, paying back the loan is paramount to the success of the business.
How you can register your business in Singapore
Both locals and foreigners can register a business in Singapore. It only takes 3 days to get a business registered in Singapore and this ease of setting up a business extends to the ease of doing business in the country.
There are four mains steps for setting up a business in Singapore and they are:
1. Selecting the business structure.
You are required to review the available options and pick one that works for you. One of the most common structures is a Private Limited Company (Pte Ltd). This works for both local and foreigners because it comes with tax incentives and easy scalability. The limited liability is also attractive.
2. Company Set up. There are several steps to company set up.
- Selecting a company name. This name is subject to ACRA.
- You must have a minimum of one shareholder.
- Appoint directors. It is compulsory for one of the directors to be a Singaporean resident.
- Appoint a company secretary. He or she must also be a resident of Singapore and must not be one of the directors or a shareholder.
- Paid up capital. The minimum amount is S$1 and it can be added as time goes by.
- Registered address. This should be a physical address. It can be a commercial or residential property. It must not be a post office box.
Once the business is registered, a business profile is purchased from ACRA. This profile contains detailed information about the business such as the UEN (Registration number), date of registration, list of shareholders and the like. This profile is needed for the application of permits and licenses, as well as opening a business bank account.
3. Opening a Bank Account. From here, the next stop is to open a bank account from which the business will operate.
4. Other Business Processes that follow include the following:
- Permits and licenses. Depending on the business, you can apply for various licenses from government.
- Office hours. These are supposed to be registered along with the offices physical address. The minimum is 3 hours every weekday.
- Registration number. All official business documents must have the UEN (business registration number) on them if they are used for communicating official business.
- Customs Registration. This is applicable to businesses involved in import and export business. The company is required to register with Singapore Customs.
- This is a tax that is applicable when goods and services have been supplied or rendered. It also applies to goods that are imported into the country. Every business is expected to register for goods and services tax if it has achieved an annual taxable revenue of more than S$1,000,000.
- CPF Registration. Central Provident Fund is a pension fund scheme that is compulsory for every employer to register with. Every citizen and permanent resident of Singapore is expected to contribute towards the fund every month from their salary.
Starting a business in Singapore is as easy as that and getting a business loan from a licensed moneylender has been simplified as well. The government has gone to great lengths to ensure that it is easy for locals and foreigners to start and run a successful business as well. With such ease of doing business, it is no wonder that Singapore has become a Hub for local and international business.
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