1. Your company is required to be registered and physically located in local (Singapore).
  1. The length of establishment of your company needs to be at least 2 years or more.
  1. Minimum of 6 months company establishment for small micro governmentunsecured loan.
  1. It will always be an essential factor for majority of your company’s directors or shareholders to be local (eg. Singaporean or Singapore PR.) Minimal 30% or 50% for some banks.
  1. The shareholders or the director of a company usually needs to have a minimal and maximum age cap to be the guarantor for the bank loan. (eg. 21 ~ 65 years old).
  1. No bad credit record in the shareholders or guarantors’ personal credit bureau report.
  1. Maintain a prompt payment record for any existing business loans you have serviced especially when you are re-applying back to the same bank.
  1. Over excessive personal loan commitment on the shareholders or guarantors will affect the success rate of the loan approval or the amount approved.
  1. Make sure there are no legal proceedings with your company and its directors or shareholders.
  1. Check if there are any existing business loans in the banks that you are applying, if there is, ensure with the bankers that there is still allowance to grant an approval. As there is always a cap of how much a bank is willing to lend.
  1. Different from No 8., another common problem of having too many existing business loans are high gearing. This means the total debt is higher than what your company is capable to repay.
  1. There is always a minimum amount for the company’s annual sales revenue required by the banks.
  1. What most concern for every Small Medium Enterprise (SME) is also what most concern for every bank – Profitability! And we mean Positive Net Profit.
  1. One of the key factors that can weigh against the risk of default would definitely be the “Net Worth” of your company.
  1. Returned Cheque in your company bank account is definitely a taboo to a successful loan approval. Make sure you always have sufficient balance in your company bank account before you issue a cheque out.
  1.  Always having low fluctuated bank balances in your company bank account? Is a sign of unhealthy company cash flow.
  1. There is always this same concern every bank have – the nature of the business. (Example of some unfavorable industries are like money changer and jewellery stores).
  1. There were also instances that company fails to have their loan approved due to their office premise. Some banks require site visits to the operating business premise.
  1. Are you aware that there are some sanctioned countries and having business dealings in these countries will definitely cause your business loan to be declined?
  1. Collateral assets are always a good to have; regardless is a company or a personal one. They definitely come in handy in supporting the approval ofyour business loans.
  1. If majority of your company’s revenue are always dependent on one particular customer, the banks might not really favor this.

Dread of remembering all these points whenever your company is looking to apply for business loan or facilities from the banks? Tired of contacting the banks' hotline or attending meetings after meetings with bankers from various banks?

No longer in this case with Tranzaco, we are the first digital Business platform that connects service providers like bankers, property agents and commercial insurance specialist directly to the Small & Medium Enterprises (SMEs) in Singapore and even globally.


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