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Are Business Loan Myth Preventing You To Grow Your Business?

The main purpose of any business loan is to increase revenue as well as achieving a competitive edge. When you are in need of funding, but you are uncertain about how to go about getting your business loan approved in Singapore, this guide can help you clear all your doubts.

Often at times, you will need a business loan to help you purchase new equipment or even for clearing any pending purchase payables. It can, however, happen that when the banks reject your loan request, you may worry that your business will shut down.

It is important for you to realize that business loans are an excellent source of funding that will help you operate and grow your business. This loan type may be used for the purchases of business machinery, financing your company, new premises, or for paying the employees salary and bonuses.

For this reason when you decide to apply for business loan issued by the licensed moneylenders in Singapore, its imperative that you are clear on how you will use the money soon as the loan is approved

An additional advantage of a business loan is avoiding the danger of seasonality. Lots of businesses bring in the most profits during the holidays season or in summer. This means that they have to purchase more inventories as well as advertising discounts well in advance. These investments may seem hazardous, but, considering that they have to be made during the low-season when the sales are often down.

A business loan can also help you increase revenue through accepting expensive yet profitable projects that, the lack of a business loan’s help, might tie up a lot of your working capital, which would make it hard for you to run your business.

Many business owners unaware to the idea of private lending thus forgo this important option because of the misconceptions that are floating around.

It can happen that one of the below-listed myths is stopping you from going for a business loan issued by licensed moneylenders. Keep reading to identify those that might be preventing you from growing your business.

Focusing Mainly On The Interest Rates Offered

Always try to look at other factors other than the rates of interest offered on the business loan you would like to take out. Although you are not the only one who makes this crucial mistake, you, however, need to remember that you need to look at other aspects aside from the lower interest rate being offered.

These should include the loan amount, processing fees, tenure, hidden charges, monthly instalments, penalties on missed and delayed payments, prepayment charges, as well as loan extension plans.

It’s Not Easy to Get Money for New Businesses

A lot of small businesses happen that they believe this myth. Partners and individuals miss out on crucial opportunities of turning their idea into a reality or even to grow their fledgeling venture. a number of Singapore’s licensed moneylenders do offer loans to help set up businesses and also fund the marketing campaigns you would like to run.

These ventures may range from start-up loan to short-term SME loans for the salaried individuals, self-employed as well as contracted individuals as well.

To Approve Business Loan You Require The Perfect Credit Rating

For some individuals, poor credit ratings might pose an obstacle for raising money from lenders or even through the government offered grants. A good number of Singaporean moneylenders will approve a business loan even when it happens you have a less than ideal credit score, given that you meet the required business loan necessities.

The provisions of the loan range from yearly revenue along with profits, cash flow, business size, business age and the nature of industry you are in.

Each Licensed Lenders Are Scammers

Some misinformed well-meaning friends and family may recommend that you stick to business financing from banking institutions or nothing, even when your company is suffering or even stagnates from the lack of funds. Do not let previous and bad lending experiences cloud your view of private funding.

Always choose trustworthy certified money lenders over the unlicensed hacks. The earlier is a professional and also follows principled business practices. This also means that you will get credit on schedule and under affordable terms.

Lenders Favor Larger Company Loan Compared To Small Business Loans

Although certified moneylenders hardly get profits from large advances or even the loans that are for long periods, most of them are ready to work with all kinds of establishments – both small as well as large. Even then do not let this myth prevent you from seeking SME financing offered by legal money lenders in Singapore.

In its place, you will need to focus on the cash flow and your capability to pay off for you to be able to make out the amount of money you will need to borrow.

Unsecured Loans Come With Rigid Payment Schemes

The traditional bank loans usually have fixed loan tenures plus EMI rates. Thus you will repay money based on a fixed schedule, not considering how the business is performing. When you have a small-scale company or your company produces seasonal goods, and that your company has flows and recede. This, in the end, affects your capacity to pay and it may also put strains on your finances.

With the private lending option, you will get reasonable repayment plan or even tenure plans depending on the business needs. Of importance make sure that you pick short-term credit for all the transitory cash needs.

Banks Are The Single Source Of Financial Support

Traditionally SMEs in Singapore often turn to banking institutions and other similar financial organization for their funding needs. Even though this might be the custom in your chosen industry, however, you can rest assured that there are many other funding options that are worth exploring.

Licensed private moneylenders in Singapore also offer working capital loans, and on many occasions without the tedious paperwork. With this in mind, you could get your funds approved under a week in many instances.

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    Loan Application Rejected? Here Are Ways To Get Your Act Together

    There are many reasons why you would want to apply for a loan. Face it: you live in Singapore. You need money to do a host of things. You need to make payments for your pet’s registration, after which you will have to budget its monthly feeding and grooming. You need to schedule trips to Disneyland in the US with your best friend (whom you plan to propose to at the place in question). The latest smart house on the market is a must have. Your tuition fees are coming up, and there are books you need to buy. And there is only so much that your monthly or annual income can take care of. Well, time to get a loan.

    You go to the bank and fill out an application form. The bank gets back to you, saying that you are not eligible for a loan. What, why? How?

    Banks and other lending institutions look at your work history, annual/monthly income, credit score, and TDSR –Total Debt Servicing Ratio– before approving your loan application. When your application is rejected, quickly check to see which of these is the culprit. Most likely, it is your credit score.

    The Credit Bureau Singapore (CBS) is the place to go to get your credit report, which will tell you just how much trouble you are in. CBS doesn’t just provide your report to banks and other lending organizations: it also keeps a blacklist. Defaulting on loans or getting debt management, or undergoing bankruptcy proceedings, will get you on that list. No bank is letting you get near them if you get on the CBS blacklist.

    What do you do now? There is still hope for you. If you can’t get a loan due to intermittent employment or a bad credit score, you can redeem yourself by doing a couple of things. Read on to learn how you can get your act together to qualify for a loan.

    1. Get A Job

    Not just any kind of job: a secure job. Stable employment is what you are after here. Also, you should have held this job down for at least a year before the banks will take a second look at your loan application. In general, banks prefer to offer loans to Singaporeans with high annual incomes. Self-employed applicants go through a rigorous process before their applications are approved. Even at that, you have to be earning a certain amount annually.

    Without steady employment, even loan sharks will baulk at lending you money.

    And don’t think that you will hustle a side job and stay there long enough to get the loan and call it quits. That will not work. Things might even make things worse for you and your report.

    2. Settle All Pending Payments

    Late repayments on loans or credit card bills affect your credit score. Neglecting to clear all the balances due also affects your credit score. Refusing to pay up to the monthly minimum amount on your loans also affects your credit score. These are the major things that give you a low rating on your credit report. It doesn’t matter what all else you do: ignoring your loan repayments guarantees are poor credit score.

    Before you apply for that car loan, make sure that you clear all existing loans and bills first. No matter how long it takes, do it. Settling your debts gives you a better credit report and a healthier TDSR standing: banks like it when they see that less than half your salary goes to paying credit card bills.

    Every debt you owe must be repaid, including that library fine for late returns of those books you borrowed.

    3. Go And Borrow Some Money – Then Pay It Back With Haste

    This is a smart way to continue boosting that credit score after you have cleared all your debts. Get a very small loan –make it a personal loan or a payday loan- and promptly pay it back. This will give your credit score a healthier sheen, and impress the banks.

    Do note that this loan has to be a small one, payable in the next month or at least three months. A payday loan is perfect: repay it on your next payday. Over and done with. If you take a loan big enough to make down payment on a house in Brooks Signature, then you must be sure of what you are doing.

    4. Use Your Credit Card

    Though a slower way of improving your credit, it is worth a shot. Use your credit card, or cards, to buy stuff and even pay your utilities. The goal here is to make tiny expenditures, like paying for groceries. Using up a large portion of credit negatively impacts your credit score, so maintain a large proportion while spending just a little.

    5. No New Credit Card Activity

    This means that you should neither cancel credit cards nor apply for new ones. While it is advisable to cancel credit cards that you aren’t using, now is not the time. Your credit score is affected by either action, so hold off on them for now.

    6. Exercise Patience

    Doing all of the things listed above will help you to clear your negative credit report. However, it is still going to take a while. A long while. Like 5 years long, based on what got you on the blacklist in the first place. The least could be two to three years because CBS needs at least 12 months of good behaviour (on your part) to believe that your score has changed for the better. Anything can happen in those two, three, five years. Singapore could be a dystopian, futuristic society by then. At least you have more time to make yourself more loan-friendly.

    For these life hacks to work, you need discipline. You can start practising on curbing and budgeting your expenditure. Keep a savings account. Set up an emergency fund. And live far below your means. A good credit score will get you that loan: a vacation in the Maldives will not.

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      Applying For A Business Loan In Singapore

      Starting up a new business is a challenge and it will always require you to put some money into your company from some of your personal savings.

      You will also need to put in some amount of your own personal cash into the new business, even when you are well able to get some cash from your friends, family and from other investors.

      When joining and starting a new business venture, the capital contribution is, in general, a very necessary and important step. Potential creditors in Singapore will always want to be certain that you have some of your personal security mostly in the form of some personal cash injected as a stake in the new business. The money used as capital whether it’s a loan or a bonus from your company or as an investment has tax implications and impact in each of these circumstances.

      Structuring Financing Options For Your Company

      In Singapore when you need to lend-out some money to your own business or company, you will be required to have a lawyer draw up some paperwork for you defining the status of the outstanding loans you may have, the repayment plan agreed upon together with the consequences of non-repayments of the existing loan. It is supposed to be clearly stated that the existing loan is a commitment and that it is binding on the part of your business venture.

      For the purposes of taxation in Singapore, a loan from your company or business and a loan from you is an “arm’s length” business deal, which will already be treated as another debt. The interest incurred on the debt accrued is equally taxable to you as an individual and can and should be deducted from the company individually as your income.

      The principal loan amount applied for cannot be deducted to the business apart from when it makes use of the funds available to acquire more capital assets. In Singapore, the capital assets meet the basic requirements for getting depreciation deductions. The return of the principal amount of the loan applied for cannot be taxed because the loan amount was issued after tax has been applied to the amount of money taken.

      Investing In Your Business

      In Singapore, putting some money in your business is the other option to investing the money. Therefore, there no taxation to you should you receive your contributions. When you withdraw additional money in the form of dividends, bonuses or draw, the amounts are subject to taxation. In Singapore, there are no tax implications to the company on the investment made, except when is for the purchase of depreciable assets.

      10 Factors You Should Consider When Making A Contribution To Your Business Or Company.

      1. Ensure you consider the labels on the paperwork you use. In Singapore, the document stated needs to show whether it is financing document or investment documentation.
      2. Ensure you consider the source of the loan payment. You should define whether the loan payment put on a loan is realized as a kind of dividend or as a payment.
      3. You should also consider the right of the identified lender in applying for a payment from the business or company. This needs to be written in the loan documentation. In Singapore, such language and information will not often show up in a share of stocks document.
      4. Take into account the lender’s right to get involved in the business management process. In Singapore stockholders usually tend not to take part as a prerequisite for acquiring shares in the management of a business or a company.
      5. You will also need to consider the maturity date of the loan applied for. The clear and precise indication of a given maturity date implies an existing loan.
      6. Ensure you carefully consider the lender’s right to amass assets alongside the usual business lenders. This information and language are concerning the collection and bankruptcy policies of the company and it will need to be made available in the company files.
      7. It is good to be clear on the involved parties’ intent. The existence of documentation needs to clearly state and show such intent and it will be helpful with this particular component of a business venture.
      8. The satisfactoriness of a borrower’s and of the company’s source of capital. Simply put, the principal sum applied for as a loan needed ought to be equally reasonable.
      9. Ensure you take into consideration whether the stockholder’s loan amount to the business venture is a proportion to the equitable ownership in the company they are involved in.
      10. It is also important to take into account the borrowers and the businesses’ ability to get and receive loans approved from other lenders.

      Despite the consequences of a loan to a business or an individual, it is necessary for you to allocate and indicate whether your contributions are as a capital investment or a loan and attach the required paperwork to support such a claim. This will help in clarifying the tax impacts and implications of the business transactions made and also prevent any potential problems with the Singaporean revenue authority.

      Where You Can Get A Business Loan

      There are plenty of places you can get a business loan for your company, depending on the loan amount as well as your company’s financial situations. For a large loan amount with longer repayment period, banks come naturally to mind while for a quick cash flow fixer, you can approach moneylenders as they are less stringent when it comes to approval process and time taken to approve your loan.

      The Comparison Between The Threats Involved

      Each of the selections has a risk implication attached to it. When the company or business is declared bankrupt and should you also have lent the said business some money, you then automatically become a lender. This means that you might or might not be able to get your loan money back from its liquidation depending on whether the loan given was unsecured or secured.

      In case the company declares bankruptcy, the flip side would be the business owner’s investments are totally at risk. In this threat scenario, there is little or no possibility of recovering the funds you have personally invested in the business venture.

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        How A Bridging Loan Can Save Your Frustration When You Sell Your House

        Bridging loans are loans that serve a purpose when you are in a particularly tight spot, and you don’t have money at hand, and the loan you have applied for hasn’t been approved yet. A bridging loan is a short term loan that ‘bridges’ the gap between the sale of a property, or a debt that you are to repay, or the gap between a property transaction and the approval of a loan you have applied for.

        Since this is not a typical type of loan, a bridging loan is very expensive, because it is a short-term option that you take when you are in very dire straits.

        Who Needs A Bridging Loan?

        Bridging loans are necessary for you if you are in a situation where you have to pay out huge sums of money while waiting for certain funds, such as a loan, to be available. Bridging loans are available for people in dire need of money to pay for things like mortgage, to complete a property sale or something that requires a lot of money. People who plan to bid on items at auctions also fall into this category, as well as landlords and novices at property development.

        What Can A Bridging Loan Help With?

        Bridging loans can help you out with certain things that may be frustrating you, such as:

        • Bridging loans can help you when you want to complete the payment on a new house but haven’t finished settling your financial commitments on the house you are currently in. In this instance, a bridging loan will provide you with the funds you need to clear the payments on the existing house and pay for your new house; or you can pay for your new house even as the payments for the existing house haven’t been cleared.
        • Bridging loans can come in handy in the case where you have just finished renovating your house and you want to sell it immediately.
        • A bridging loan can help when you want to buy a house at a house auction.

        The essence of a bridging loan is that it is a short-term financial solution to your immediate financial problem, but this loan comes with a very high-interest rate.

        When Are Bridging Loans Most Useful?

        Bridging loans are most useful when used for investing in property when used for development purposes, when to buy property, or when to give property for rent. However, some people take out bridging loans for the simple reason that the personal loan they have applied for is taking too long to be approved. So, it could be said that bridging loans are useful as shortcut ways to get a loan faster.

        Bridging loans, as said earlier, are short-term loans, but people seem to go for them more and more, mostly without knowing the full implications of taking those loans.

        As such, bridging lenders are increasing because banks and building societies are hesitant to give bridging loans to customers during a financial crisis: the inadequacy of funds to pay for your new house.

        Bridging loans attract high-interest rates, a hefty administration fee, and the likelihood being swindled depending on where you get the loan from.

        Before getting a bridging loan, carefully assess your needs and what you want to get the loan for, and how much you earn and can afford to pay back monthly. Bridging loan payments can be as high as 18% per annum; so looking at a second or third option is advisable before settling for a bridging loan.

        Where Can You Apply For A Bridging Loan?

        Getting places to obtain a bridging loan is not difficult. Banks, moneylenders, and other financial institutions offer bridging loans, as well as individuals. However, it is important that you get a loan from a certified, licensed, regulated, and legal financial institution. Banks offering this loan in Singapore include Standard Chartered Bank Singapore, DBS Bank, and OCBC amongst others.

        Moneylenders also offer bridging loans to you if you need them, and you can look up legal, licensed moneylenders to find out where you can go to borrow money. Moneylenders have a bad reputation for being dupes and scammers, but with the regulatory board in place for moneylenders, you can be sure to find out which moneylenders are scammers and which are legitimate.

        There are currently 170 moneylenders registered with the Ministry Of Law, and you can check their website to see the list of registered moneylenders in Singapore. To verify their licenses, you can also look them up on the website of the Ministry of Law.

        Moneylenders offer two types of loans: secured loans and unsecured loans. A secured loan is one that you need collateral to be able to obtain, and the amount is you can borrow with a secured loan is virtually limitless. An unsecured loan can be obtained with a look at your credit report and your ability to repay your loans. The amount you can borrow depends on your annual income.

        Obtaining bridging loans from moneylenders is very possible, as long as you verify the moneylenders.

        Conclusion

        Obtaining bridging loans in Singapore is an increasingly common occurrence because living in Singapore without getting a loan means you are among the few earning up to S$120,000 annually. Bridging loans come in handy when you need to sell your house, buy a new house, develop a property, or let property, i.e. rent.

        While bridging loans may be the perfect solution to obtaining huge amounts of funds in a pinch, the interest rates are high, and you may not be eligible to get other loans once the lenders see that you are repaying a bridging loan. Bridging loans are short-term loans, which means you have to pay them back within a short period of time.

        Before you take out a bridging loan, make sure you assess your income and your budget before taking that step. Also, it would be wise to consider other options before settling on a bridging loan.

         

         

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          How To Get Out Of Credit Card Debt Quickly

          By Kally / September 12, 2017

          Taking out loans in Singapore is not an odd occurrence. The standard of living in Singapore is high, and there seems to be a lot of payments to make on cars, houses, and pets, and all of these payments are mandatory because it is the law. There is also education to think about, paying for tuition and books, and accommodation, amongst others. It is no wonder that loans have to be taken out, and credit card debts seem to be escalating every year.

          Because of all these loans, personal debt has become an increasingly difficult problem for Singaporeans. While it may be necessary for you to take out personal loans on your credit card for car payments or for house payments, having an outstanding debt of S$30,000 on your credit card is something to worry about. The interest on the loans can increase with every default on your part, adding up to thousands of dollars (on interest alone), and paying off your credit card debt will just keep getting harder. Also, there is a big chance that, with outstanding credit card debts, you may not be able to take out another crucial loan when you need to. As such, you need to find ways to get out of debt and fast.

           

          Calculate Balances, Annual Fees And Interest Rates

          You have decided that it is time to pay off your credit card debt, and the time to do that is now. Before you create a strategy for paying back those loans, you need to carry out a little math to know where you stand. Calculate balances and check annual fees. Check the minimum that is due and finds out the exact amount of credit card interest rates are charged on the credit cards you own, especially if your accumulated balances are in the range of four to five figures.

          Pen these figures down, and you will know what your next step should be. If you have been paying annual fees on your credit card, you have found one way out of debt: ask the bank to stop your annual fees, and use the money you have saved on those fees to pay your outstanding debt.

          Plan Out Your Weekly And Monthly Budget In Advance

          Budgeting is imperative to get out of debt and into a healthy financial existence. It is necessary to plan out how much you spend every week and every month, and how much you are going to save. How do you plan out this savings and expenditure budget? Figure out the difference between what you need and what you want. Place your needs and wants side by side, and compare them to how much you can afford to spend. Your expenditure should never exceed your income because that would mean that you are in an unhealthy financial situation.

          When making your budget, ensure to budget for what you need, and make sure you save something at the end of every week, and at the end of every month. What you save at the end of the month is what you will use to repay the loan on your credit card.

          Debt Consolidation Loans Into One Single Loan

          If you have a big loan that you need to pay off, you can take out a debt consolidation loan to pay it off. Debt consolidation loans are cash loans that you can take to pay off credit card debts and other personal debt, and these loans are cheaper than traditional, personal loans. You can take a debt consolidation loan from the bank, or you can go to a licensed moneylender and get a cash loan from them.

          While getting loans from moneylenders is much quicker than, say, getting a loan from the bank, you need to understand that there are two types of loans you can take from money lenders: secured and unsecured loans.

          Secured loans require some form of collateral, such as a house or a car, before you can be given the loan: unsecured loans require a good credit score and loan repayment history before you can be given the loan. With a secured loan, you can get any amount you want; with an unsecured loan, the amount you can borrow depends on your salary. The interest rate on loans from moneylenders is a flat 4% rate, even if you are late on your payments; the 4% will be charged to the delayed payment.

          Moneylenders also charge certain fees to the loan, such as 10% of the principal loan amount, and S$60 charged to every payment you default on.

          Choose Repayment Strategy

          There are two repayment strategies you can choose from to settle your credit card debt: pay highest-interest cards first, or pay those cards with the lowest balance first.

          • When paying the highest-interest cards, arrange the cards from those with high interest to those with low-interest rates, and start paying them off in that order.
          • When paying off the debts on the cards with the lowest balance, you rank the cards from lowest balance to highest balance and pay off the cards with the lowest balance one at a time. While you are doing this, you are still paying the minimum balance on all of your cards.

          minimum balance on all of your cards

          Avoid Using Credit Cards

          While you are trying to repay your credit card debts, avoid making any financial transactions with your credit card. Using your credit cards will simply add to your debt: so, it would be advisable to use cash to make purchases and settle bills. Also, using cash is a good way to curb your expenses: you will only buy if you absolutely need to.

          Conclusion

          Settling credit card debt in Singapore is something that a vast number of the population has to deal with because borrowing and taking out loans is necessary to be able to live comfortably in Singapore. However, when these debts skyrocket and become too much to handle, you seriously need to pay them off and fast. Make a budget, get a debt consolidation loan, avoid using credit cards… either of one of these will go a long way in helping you reduce your credit card debt in the long run.

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            Licensed Moneylenders Vs. Banks: What Are The Differences?

            By Kally / September 8, 2017

            Here in Singapore, when you have a financial emergency, you have two main options to which you can turn to for a loan, and they are banks and private moneylenders. There are several banks in Singapore from which you can obtain a loan which include DBS, Standard Chartered, Citibank to mention just but a few. At the same time, there are many licensed moneylenders throughout the country.

            Licensed moneylenders and banks work in completely different ways. Licenced money lender singapore are businessmen like any other entrepreneurs. However, in Singapore, for one to run a money business, they need to be licensed by the registrar of moneylenders. This license that they are given has restriction within which any licensed moneylender should operate within such as the amount of money that they can lend to you, a competitive interest rate and the service fees they can charge you among other restrictions.

            Before you run to any of these businesses to take that loan, it is important for you to know the differences between a bank and a licensed moneylender.

            Amount Of Money They Lend

            In Singapore, the registrar of moneylenders regulates all moneylenders, which is a state department that determines the amount of money that the licensed moneylenders are allowed by the law to lend to local borrowers. It does not end there the regulation also limits the kind of service fees and the interest rates which a money lender can charge you when you go to him for a loan. The good thing about these regulations is that when you go to a licensed moneylender anywhere, you are protected by strict regulations.

            In addition to the above restrictions, you can be sure that the amount of money that a licensed moneylender can loan you is smaller as compared to a bank. Hence if at the middle of the month you run out of cash to meet your daily needs, as you await your end month salary, you can approach a licensed moneylender for a loan to tide you over. However, if you are in need of a huge amount of money, then it goes without saying that the bank is your only option.

            Transaction Speed They Approve

            Depending on how soon you need money, a licensed moneylender might be the better option. This is because, at a licensed moneylender’s office, you can be able to get that fast loan within an hour or less of you visiting them. The required documents that a moneylender need are much lesser than a bank’s requirement but do prepare the required items before you approach a moneylender so as to speed the process of loan approval.

            But on the other hand, if you go to the bank to get a loan, you will have to wait for a number of days or even weeks before your loan can be processed. The reason as to why banks take that lengthy period of time is the amount of paperwork that is involved in issuing a loan and the required checks to ensure your documents are in accordance with their strict requirements. This is a clear indication that the bank is not the best place to turn to if you have a pressing need of money to meet your emergency.

            Credit Checks They Do

            In Singapore, both banks and licensed moneylenders have the ability to handle credit checks from their clients. However, banks are always known to be stricter about the outcome. In a bank, you need to have a credible credit score combined with a low debt to credit ratio for you to qualify to be issued with a loan, especially if you need money for example to renovate your home. In addition to that, if you want to have the lowest interest rate on your loan, you must ensure that your credit score is above average when you are approaching a bank to take a loan.

            If you are sure that your credit score is below average and you need a loan, you have the option of visiting a licensed moneylender near you. The good thing about moneylenders in Singapore is that they are lenient when it comes to debts and credit scores. It goes without saying that if the credit checks show that you have already taken a lot of loans from other moneylenders, your chances of being approved for a loan are minimal. This is due to the fact that moneylenders want to be sure that you are capable of paying back the loan within the agreed time.

            Higher Interest Rates They Charge

            In case you are not aware, licensed moneylenders can only reveal their interest rates to you when you visit them hence sometimes their rates are higher as compared to banks. In fact, in some of the moneylenders, their rates are so high that it would only be wise for you to use your credit card as compared to visiting a moneylender. If the middle of the month you need a few hundred dollars to push you to the end of the month, then it would be wiser to approach your bank to get approval to use your credit card than to turn to a moneylender.

            Conclusion

            In conclusion, therefore, as you might have realized till now, there are few differences between banks and licensed moneylenders. If you are not so sure whether the kind of loan that you need can be catered for by a moneylender, feel free to visit one near you and inquire or you can search online. Alternatively, a search with the government moneylender register will bring up a list of legalized moneylenders and their contacts.

            So, between a moneylender and a bank, whom should you turn to for a loan today? This is dependent on the type of loan that you want. If you want a huge amount of money, the bank is the better option for you and if you are looking for a payday loan, then visit a legal moneylender.

             

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              The Best Way to Locate That Cash for the Next Property?

              There are lots of prospective property investors who had many great chances passes them due to the insufficient funds, very significant funds to pay for down payment to ensure an excellent property for capital increase and rental income.

              We’re planning to talk about a few common techniques where you are able to discover that fund to ensure your next property now.

              1. Unsecured loan is a kind of short term loan that you could leverage on and never have to use your own personal funds. One common source will be from your credit card or a bridging loan from the money or bank lender. Nevertheless do take note of the interest that is high.

              2. Guaranteed loan – Cash from friends and relatives. I’m a believer of ‘there’s no such free lunch in the world’, so be ready to look at a combined investment along with your financial backer. Instead for those that possess a company, which is an excellent way to obtain no or low interest loan also.

              3. Non performing funds – Cash that’s from your endowment strategy, shares (consider your stop loss), pension money, wines, land banking, jewelry, etc. The yields from all these are fairly low. Therefore it’ll be an excellent leverage to make use of the resources here where the rental income would undoubtedly greater to ensure a property.

              4. Refinancing your present property (eg. Your dwelling, office or warehouse) is a great way to own the ready cash to finance your brand-new property.

              All these are a number of the more prevalent ways that seasoned investors used to raise cash for his or her property investment. This simple read post provides some useful thoughts for you to finance your next property. Yet with the slowdown in China, Europe and USA, it’ll be an excellent chance to go hunt down some properties that are good.

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                Credit and Credit Card Rating

                The best way to Improve Your Credit Rating

                As a prospective and consumer borrower in Singapore, there is no dearth of options in regards to lenders and loans. However there’s one factor that could limit your loan options: rating or your credit score.

                Your credit score shows your capacity and history as a borrower. An excellent score means you might have the ability to cover debt and also the discipline to pay them on time. Excellent score also speaks well of your financial status. A good credit rating gives you better interest rates on your loans, mostly because your credit history suggests that you have no financial and investment risk for your lender.

                A poor credit rating can mean a lot of things. It may mean you have had a number of loan payments that are late and defaults, for instance. Poor rating leads to rates of interest that are equally awful, since the investment risk is being compensated by your lender by charging you higher interest rates. While there are credit and loan choices for individuals with not so impressive rating, it is perfect for you as a borrower to work in your rating so that you can get better interest rates.

                Credit report evaluation

                Every borrower that is interested should assess their credit reports prior to taking out a loan. This is to ensure that the reports provide accurate financial information. Your report could contain late payment updates, fraudulent applications, and discrepancies. You’ll be able to employ a credit repair service if your credit rating does not correctly represent your credit history.

                Your financial advice will be assessed by a credit repair service via your credit reports, and check for discrepancies. The repair supplier will forward your corrected information to the Credit Bureau of Singapore if there are inconsistencies. It’ll automatically update your credit rating, once the corrections were approved by the agency.

                Consider whether you really want credit repair before getting this service. Credit repair does not automatically mean your credit score is likely to be enhanced. Evaluate your reports for any discrepancies that are possible. Only in the event that you believe there’s a discrepancy then only you get credit repair service.

                Be cautious of credit

                Your rating is not completely dependent on your credit history and your financial capacity. Most of the time, your number of credit that is open can impact your credit score and credit capacity.

                Banks, lenders, and sometimes even credit bureaus typically evaluate how many available credit lines you have. This implies that the amount of bank cards and charge cards you’ve will be assessed. If you got many credit cards even if you have been paying your accounts on time, banks and lenders could deny your loan application as well. This might just slightly impact your credit rating, but nevertheless, it’s going to substantially affect your capacity to borrow or get credit and loans.

                The truth is, when trying to enhance your credit rating, you should avoid using credit cards at all cost. This goes for charges cards too, which are inherently worse than credit cards.

                But credit bureaus not only assess credit payments and your loan. All your debts and unpaid balances are taken into account when institutions and financing agencies compute your credit score. This includes other similar contracts along with mobile phone contracts.

                Develop your credit

                The most effective method to enhance your credit score is to construct it. This works both for those with no credit history and for individuals with credit ratings that are extremely bad.

                With a higher interest rate, although despite having a bad credit rating, you can probably still get financing. Proving that you’re capable of handling financial obligations is a good way to up your credit history. This is very important because payments that are late can negatively make an impact on your credit history.

                Inform your lender or your bank immediately in case you believe you will be late in making payments. Lenders and banks will probably be more than willing to renegotiate your loan terms. They would rather change your loan terms so that you can avoid default. Many borrowers believe lenders and banks favor defaults, especially with guaranteed loans. But cash would be preferred by lending institutions as an alternative to non-financial, non-liquid assets. Lending institutions are somewhat more inclined in the event that they are informed by you of your potential financial difficulty beforehand to renegotiate your loan terms.

                Take the time to make yourself appear financially stable. When in the procedure for fixing credit rating or establishing credit rating, do not apply for loans frequently. You’ll not desire a financial institution or lender to understand which you happen to be denied a loan 10 times in the past 12 months. This provides the impression that you are in grave need of money, making you appear financial unstable and also desperate. Check your credit rating at least one time each year to see developments, any changes and, hopefully.

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