Business without a loan might seem ideal; however, it is never entirely possible. At some point in time, many small business owners are faced with problems that require urgent resources and proper financing. In such situations, loans come in handy.
Whilst these loans do help you in your time of need, it is a two-way stream, and you are always required to make due on your part. There are many loan options available for small business owners in Singapore and among them is an option known as an inventory loan.
Inventory loan is a way for a small business owner to acquire capital for the purchase of resources hence the name inventory loan. During the peak seasons when the prices are most favorable, such loans are used by the small business owners for stockpiling. It is much better than selling your business and helps to prosper your business in a short period of time.
If for a reason, you are not able to maintain your seasonal purchases, you can always opt for an inventory loan to acquire resources. Or if your inventory sales are going off the roof and you need some more capital to keep selling your product than, an inventory loan is a great idea.
If you are behind on your targeted sales or your sales are going slow, it might not be the best idea to go for an inventory loan. When it comes to inventory loan, lenders only approve the application for businesses with potential. Applying for an inventory loan in such a situation will not help you out.
Inventory Loan Requirements in Singapore:
Lenders in Singapore have similar requirements for an inventory loan as other countries. The basic requirements are all the same. It is your lenders’ responsibility to guide you through the policies, condition, and requirements for the loan; however, it is better to go prepared. These are some basic requirements that are needed by lenders before lending inventory loans to their clients:
- Good credit Record: Lenders will lend you money based on your track record. Having a good credit history is an upside for you. It helps lenders identify your business history.
- List of inventories: Lenders will always look for business owners with a list of inventories. The longer the list, better are the chances of getting approval for an inventory loan.
- Other forms of financing: Have more than one form of financing is something every lender with like about you. It helps them feel self-secure before lending your capital.
- A proper business plan: Lenders know that businesses are run through strategies and business planning. Having a solid business plan will definitely help you get the attention and approval of your application from your lender.
So, all you need to do is to keep up the good value in front of the lenders, or they will undoubtedly reject your application. These are just some basic requirement. However, you might be required to provide additional information and documents depending on the lender’s policy and your type of application.
Steps to get the best inventory loan in Singapore:
Business owners are always worried about finances and maintaining the balance of their business. If for some reason you are opting for inventory loan, it is best to be prepared for every kind of requirement your lender can put forth. Make sure you have all your documents, statements, and resources lined up for the lender’s view.
Step 1: Prepare your Financials
Consult your businesses financial person to prepare your financial since he is the one most aware of the recent condition of your business. Make sure to have your financials in order before submitting your application.
Step 2: Submit application
After you are done preparing your financials and acquiring your documents, it is time to submit your application for an inventory loan to your lender.
Step 3: Commit to the thoroughness of your lender
It is natural for lenders to be thorough in checking your business conditions and situation. Make sure not to be irritated by it and fulfill all their requirement.
Step 4: Business audit
At this step, the lender will ask for a business audit. This is to determine whether a business is capable of returning the loan if you are accepted for the loan.
Step 5: Wait for the approval
There is nothing left to do except you wait for the approval of your application. During this time, lenders will analyze your financials, documents, business situation to determine whether you are applicable for this loan.