Any money lender in Singapore will tell you the same thing over and over again without ever considering to alter his statement. “You need a loan in order to change even the most minor of aspects of your business”.
Don’t get me wrong, perhaps you have found the recipe for success, and you may have been able to construct that ultimate business that can sustain itself, making any kind of expansion or improvement possible by the sheer strength and size of the company budget itself, and you will still have to resort to loans in order to do it.
The reason for that is the fact that the state in which you choose to start or move that business, is able to recognize your activity as a company a lot faster and a lot more efficient when prompted by the banks and / or the credit agencies that you contact in order to get the loan that you need to get.
Indeed, it can be seen as a shortcut, and it is better off to let someone else face the queues and the bureaucracy involved in this rather than facing it yourself, and if you indeed have the necessary funds and the limitless budget that will allow you to make those additions and those moves that you have planned in the future, you can simply contract the loan, keep it active and pay the interest rate for a few months if not an year, and then pay it back in one big scoop.
That way you make sure that you kept the sum of money in your account in order to qualify it as being used and active, and the money lender Singapore put at your disposal will be able to report that your business had economic activity throughout the duration of the loan, as much as the lender himself was able to deduce.
Another great thing that comes with them is the low interest rate. When you take out a loan for a company, rather than a loan for yourself, you will have to face longer payment plans, but with less interest than if you would of have had if you would of taken out a personal loan.
The reason for that being the fact that commercial loans are greatly affected by the fiscal years and the actual stock exchange, risking fluctuations that could ruin lots of businesses, while the personal ones are regulated and monitored by the interests rates that are laid out from the very start.
That being said, business loans are a tricky thing to take into consideration and even though you can look at them with hope, as a shortcut, or simply as another way of expanding your already successful business without waiting for the time when you will be able to afford to put the plan into motion by the power of your own company vaults, when you will contract those business loans, you will ultimately face a lot of harsh conditions and a lot of risk, but it will all be worth it in the long run if you are careful.