The Covid pandemic was a jolt to the senses for many businesses in Singapore and across the globe. For the first time in the modern era, the world faced a true crisis that left almost no one unscathed. Many businesses that survived the crunch did it with the help of fast loan credit.
What is fast loan credit?
Licensed money lenders in Singapore offer a variety of loans, some generic and others for specific purposes. Fast loan credit is specifically for borrowers who need cash urgently. It is marked by a quick assessment process and fast loan approval followed by a prompt release of the approved loan amount to the borrower.This fast loan process is not offered by all licensed moneylenders in Singapore. Only the larger and more established lenders have the capital and the efficient processing system that can handle fast loans. Many small and medium enterprises (SMEs) in Singapore used this valuable service to stay in business during the recent – and ongoing – pandemic restrictions.
However, a fast loan approval is more than a stopgap measure. If you invest it using a good plan, it can help to seed long-term business viability.
Do you qualify for a fast loan?
Most legal money lenders in Singapore extend fast loan services to businesses as well as individuals. However, the size of the loan, the interest rate charged, the designated repayment period, and the approval process will likely be different.As a business applying for a fast loan, you will have to show proof that you have a sound business model that can weather the storm. This means that it is harder for businesses that are already in the red to get such a loan (or any other loan). However, it is not impossible.
You must be able to show the lender that while you may be struggling because of the current downturn, your business idea is viable. You should do some basic research to back this assertion and use it as the basis of your loan application.
For example, if you are in the food and beverage industry and the media has been touting a return to normalcy in terms of dining out, that is a positive you can use. Similarly, the easing of social distancing rules for restaurants shows a lender that your business will soon see more customers and, thus, more revenue.
Each bit of news like this indicates that you will be able to repay a loan. No such information is the clincher on its own but, added together, they can help to make a good case for you to get fast loan approval.
The most important thing is to be transparent with your lender. Provide them with all the financial information for the business such as bank statements, income tax records, and company balance sheets. You should also bring your personal financial information to improve your chances of being approved.
Using your fast loan
So, your loan was approved. Now comes the really difficult part: deciding how to use that money.For businesses that are struggling, the obvious and most pressing needs would be store stock, salaries, and outstanding supplier payments. Look at spending on any other expenses only after these immediate concerns have been taken care of.
You may also consider investing in automation if it is relevant to your business. Not only can this drastically reduce your expenses in terms of salaries, lost hours, and people management, but it also helps with the ‘social distancing’ factor that is so important nowadays.
On the other hand, if you are one of the fortunate minorities with a business that has weathered the crisis well, you should look at investing your loan in future profitability. Consider the crisis that you have just overcome and ask yourself these questions:
- Would it have affected your business critically if it had been more severe?
- Would you still be able to survive if it happened again in the near future?
- What would you have done differently knowing what you know today?
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