According to statistical reports and researchers did in recent decades, more than 29,781.000 companies, as well as businesses, are registered from 2011 to 2019 across Singapore. And each business come up with an intention to compete with others in the market and get top on the list.
With that much-increased number of businesses, the requirement for funds and financing in Singapore has shown a drastically increase. More and more companies are searching for fun from anywhere they can.
After all, funds never come walking to your doorstep in order to benefit your start-up. You have to look for them!
In such cases, most loans can be tempting options for most business owners. While there are numerous benefits of acquiring a business loan for your company, it’s is not unhidden that loans have a disadvantage at the same time.
Take a look at some of the few pros and cons of taking a business loan in order to know whether it is a good option for you or not.
Pros:
- You can accelerate the business growth
Growth is one of the important factors almost any business has. If your company is still restricted to limited growth, then your first priority should and must be to accelerate the business growth with some fast cash.
This is where the business loans come into the picture. Even though loans can take up few months of approval (if you do not have a good business plan), yet still they are the best source to avail funding a good source.
Facts suggest that the companies who acquire business loans are easily competing with their competitors without a doubt.
But at last, it depends upon how a business owner is going to use that loan amount once approved.
- Helps in marketing
These days, marketing is considered some of the best ways to promote the product or service or even the whole brand and increase the business growth in no time.
But here is the twist. Does not matter which type of marketing strategy you are applying or planning to play. It is for sure that it will cost your business a king’s ramson when actually executing all your advertisement plans.
Apart from all this, the majority of promotional campaign’s you have drafted for on your own could take your new start-up to a whole next level. However, all these things will cost a good amount of money. And if you do not have enough money to target your audience, then what can be better than the best business loan Singapore for this purpose.
- Shorter Loan Application
When it comes to loans, especially business loans, a majority of business owners thinks that it will take them more than months to get approval from the moneylenders or loan providers.
And if you are one of them, then you probably do not know about the unsecured business loan for sure.
Normally, unsecured business loans do not take more than weeks or months of the approval process.
The obvious and short reason for this is that the company does not have to come up with collateral or other such things, and with the unsecured business loan type, the provider doesn’t have to evaluate the collateral in order to approve your love.
This helps to save the time of both the lenders as well as the loan seekers who are looking for fast cash desperately to benefit their business in literally no time.
Cons:
- Business loans are harder to qualify for
Loans are often harder to qualify for if only you do not stand out in the loan approval eligibility criteria. And it gets more difficult when it is a business loan.
The majority of lenders in the countries like Singapore are going to ask you an endless list of questions ranging from what is your business plans to financial status, source of income, and that’s just the tip of the iceberg.
Above all, the lender’s main intention while providing loans to the businesses is simple: minimize the risk factor.
Due to this, a business owner with a low credit score or not so good business plan will definitely struggle to qualify the above eligibility criteria.
- Higher interest rates
Do you know what lenders or bank loaners benefit your business with a loan? That is because of the interest rates. And most businesses just ignore this factor because of their desperate need for fast cash.
However, but you should and must forget that each and every time business loans are provided with some good percentage of interest rates includes with the loan amount.
And guess what? If you fail to pay the loan, it is simply going to add up your total repayment amount. This can create an absolute blunder for a business owner, and thus, most of the businesses fail to pay the personal loan Singapore amount with interest rate.
