Applying for an SME loan could,through a loan broker Singapore, can be an extremely tedious process. For many small business owners, it’s even more challenging due to a large number of requirements that banks have.
Before choosing a loan broker in Singapore, businesses should look at the below checklist:
Contacts and network
It is always better to choose professional brokers who’ve been in the business for years as they have built relationships with a multitude of bankers and investors.A loan broker knows with contacts, and the network will always search a financier who is the best match for your funding needs.
Expertise and experience with legal knowledge
A seasoned broker will have both experience and mastery in the lending process as well as credit documentations. He’s completely aware of the latest market trends, including indicative rates and knows accurately if a loan is over or reasonably priced. Proper knowledge of collateral offered as security for loans is crucial. Only a broker will minimum five years of experience and expertise in the field be counted on to provide trustworthy advisory on more complicated facilities such as factoring and trade financing. Awareness of the latest laws and regulations governing lenders and borrowers in Singapore is a must.
Alternative strategy and practical advice
In the event of banks refusing the loan, which is a common scenario in Singapore, the broker should have other financing options ready. A good loan broker always has a plan “B” prepared with a string of other alternatives made.
Favorable loan terms
A loan broker should know the best way to present the loan proposal to a handful instead of a single financier. Your broker should compare all offers to conclude on the best rates and payment terms that will help you save money, time, and resources.
Handling the small details
A broker should go down to eachto be able to point out the red flags that could lower the chances of approval and fixing them in real-time.
Businesses need to filter them through these pre-requisites strictly to ensure that they employ the best loan brokers.
Also, firms need to keep the below points in mind, which are a strict no-no:
- No business premise or proper contact information
- Lack of transparency
- Over promises
It’s not enough just enough to know the positive pre-requisites while choosing the right broker; it is equally crucial to decipherthe fraud or the wrong ones.