DBS is a multinational bank it was first founded in Singapore by the government of Singapore. It is also known as “Development Bank of Singapore”. Now it has many satisfied customers in more than 100 branches. DBS introduced “Business Class” program, a new program where an entrepreneur can consult and contact with investors, industry experts, and fellow entrepreneur. DBS has guaranteed that 25 business experts, seasoned entrepreneurs, and investors will be joining “DBS Business Class”. DBS just doesn’t give you advice but also offers you startup loans. A startup business loan is a government-backed loan scheme to help entrepreneurs to start or grow an existing business. There is a variety of new business loans and financing methods for new business owners. The maximum loan amount you can borrow is S$150, 000, loan tenure period can vary from 6 months to 5 years. The interest rate is 7.9 to 19.9% p.a. Your request can get approved in 10 working days.
Benefits of Startup Lone:
The following are the benefits of Startup loans.
- Quick access to cash.
- Collateral free.
- Low-interest rate.
Startup Loan Qualification Criteria:
It is good for small business owners with limited financial history. A new business can also apply for a start-up loan but the age of your business should be more than 6 months. If not, then there are many other traditional business loans available you can apply for them. Your annual revenue should be over S$75k.
Your personal credit score helps you qualify for a startup loan, minimum it should be 700, higher the score means better chance to qualify for startup loans for business, SBA microloans, Business Credit Card, and other small business grants. The eligibility to qualify for startup loans depends upon the idea of your business, which market place you are targeting, which place you are going to start your business, and so on.
Apply for Startup Loan:
The application process for startup loans depends on which method of financing you are applying for. The breakdown of different financing methods for startup loans is below.
- Typically, SBA microloan has the longest application process. It requires a lot of documents. Its process can take a few weeks.
- Business credit cards have a simple way of processing your application. It usually requires your social security number or federal tax ID.
- The application process for a small business loan can depend on the amount of money you are borrowing and your credit scores.
Required Documents for Startup Loan:
Here is the list of documents that you are going to need while applying for a startup loan.
- Business plan/model.
- Bank account number.
- Credit score.
- Equipment Quote.
- Driving license.
- Proof of residence.
Working on Startup loans:
Business financing can be confusing especially when you are new to it and striking it on your own. Starting a new business with a loan is way more challenging and riskiest kind of business fund. But don’t worry DBS provides you a variety of different small business loans which suit your needs. Check them out and choose the best startup loan for your business.
Small Business Administration microloan offers you loan amount varying from S$500 to S$ 50k. The average loan amount you can get is S$ 13k. The SBA microloan program is said to be a traditional startup business loan. But some business owners find S$50k an insufficient amount to start their business that is not bank’s fault, a person should make the ultimate decision which business he is going to get funds for then go for loans.
Business Credit Cards:
Business owners with less than 6 months in business should get a business credit card to cover startup expenses. Business credit card is not the traditional way of a business loan but for starters, it helps them to cover big expenses. This startup loan gives you access to a credit card limit that you borrow up. As long as you are paying off your monthly balance each month you don’t need to worry about high interest. Business credit card is helpful for small business startups for three reasons.
- Fast to apply.
- It gives you the freedom to borrow as much or as little as you need each month.
- Collateral free, no need to secure the credit line.
The plus point is there is 0% APR. It is more like using an interest-free loan and if you have balance in other business credit cards you can add this balance into 0% APR card. But you need to maintain a certain credit score for this 0% APR.
Small Business Grants:
If you are starting or running a business, nothing sounds better. Unlike “business loan” you don’t need to repay for small business grants, so there’s no worry over tenure period, APR, interest rate, or refinancing. You just need to apply, qualify, and boom-free money.
Small business Grants is a non-profit government organized scheme. You can start any kind of business from the small business grant. But some small business grants are reserved for certain kinds of business mission-oriented business, non-profit business, or business operating in specific communications. Small business grants are not the replacement for traditional business startup loans but they are worth applying. Here is a list of top Small Business Grants.
- Small Business Innovation Research Program
- Small Business Technology Transfer Program
- Rural Business Enterprise Grant
- Eileen Fisher Grant for Women
- Chase Mission Main Street Grant
- Visa Everywhere Initiative
- Lending Trees Small Business Grant Contest
- Wells Fargo Community Investment Program
- Innovative HER Women Business Challenge
DBS provides startup loans to all small business owners nationwide. There are pros and cons to getting startup loan including eligibility, the risk to personal credit, and the cost of repayment. But DBS bank educates its customers about startup business loans and help them make the best business decision. Business Class members love to hear from you and encourage you to start your own business with confidence.