Micro Loans: How Can Your Business Benefit from Them?
Many business owners can attest that not many can equal the kind of competition found in the business world.
This kind of stiff completion is especially evident in very progressive countries like Singapore and the United States.
Many business owners agree that when it comes to business, the challenge does not end at ensuring the business stays afloat.
More than anything, the challenge should include finding ways for the business to get ahead.
However, to get ahead, funding is needed.
Fortunately, a micro loan in Singapore can come in handy.
What are some of the peerless benefits of micro loans?
Inventories or supplies
If you are involved in the retail business, you can use a micro loan in Singapore to buy additional item or supplies for your venture.
This type of loan can be very helpful especially for businesses that are still starting out as it will allow them to boost profitability.
Machinery or equipment
Bakeries, manufacturing companies, and bakeries are just some of the business that can surely benefit from micro loans.
For starters, they can use the money to purchase equipment or machinery the business needs.
Ventures involved in other industries can used the money to purchase computers and other IT equipment.
If you need cash to hire new employees or if you are looking for cash to pay for the company’s day to day expenses, then a micro loan would be ideal.
Regardless if it’s for other working capital expenses or just basic expenses, funding from micro loans can definitely make a world of difference.
Furniture or fixtures
People who are involved in the restaurant or retail business can use their micro loan money to purchase fixtures, furniture, and décor the retail space needs.
Micro loans can also be utilized to buy office furniture and fixtures.
As a general rule of thumb, it is recommended that the funds be used in improvements that will significantly improve customer experience and impact profitability as opposed to just enhancing aesthetics.
What are some of the ways you can put into practice to hasten the approval of your micro loan application?
Make sure your credit report is accurate
Before you apply for a micro loan, you need to ensure the figures and information reflected on the credit report are correct.
To play safe, check for delinquent balances that have already been taken care of but are still reflected or other accounts that have been linked to your report by mistake.
Meticulously check your credit report so you can spot errors and have them fixed right away.
Make it your obligation to also check for erroneous entries that can bring your credit score down or mislead creditors when it comes to your true creditworthiness.
Ensure you have all the needed financial documents handy
More often than not, before a creditor grants a loan, they need to be certain the borrower can repay the money lent to them.
Understandably, for them to be able to gauge the borrower’s capability to pay, they’d ask for financial documents like income statements, reconciliation of net worth, and balance sheets, among others.
When asked to present any of the aforementioned, ensure they are not more than 90 days old.
If you are a new player, chances are you will be asked to present your balance sheet as well as your income statement so ensure you have them handy at all times.