- June 11, 2020
- Posted by: avantconsulting
- Category: SME Loans
How Business should take advantage of Business Loans in Singapore – Covid 19 is a very tough period for many business owners. This is a point in their careers where they will face close to zero revenue and for many months with the salaries and rentals running. Such a drop in business activity has not happened before and this is also something that has caused much difficulties for businesses to tide through. Especially so with the Singapore Economy already looking at a slowdown for quite a bit of time with the USA and China engaged in a trade war before this pandemic stopped the whole world from functioning normally.
For most businesses, they do not have more than 3 months of operational cost as savings in their bank accounts. Most businesses work on the basis that they have continuous revenue that will not fall and this is one of the business problems of the current business community that is not ready for shocks such as this circuit breaker and also the slowdown in the world economy due to the global lock downs initiated by many countries in the developed world.
For most businesses with not much cash ready to pay their staff salaries and also for those that do not have enough for rental, the slowdown is extremely painful for them because they have no means of maintaining their business with this slowdown likely to stay for the long term to the end of this year. Before the vaccine is out, we believe that the slowdown in the general economy will stay for quite a bit at least until the targeted time for the release of the vaccine in 2021.
The advantage of acquiring some Business Loans in Singapore is the fact that you are able to have the cash flow to keep things going on so that you do not have to go down the option of closing down when cash runs out. You will also be able to keep your staff in employment for a longer period of time although with some slight cut in salaries or no pay leaves.
This is something that we will like to suggest to our clients when they are thinking if they should take up Business Loans in Singapore during this period. The main concern is paying back the loan and whether they can afford the interest. The interest rates are around 1.5% per annum and this is one of the lowest rates offered by Singapore banks for Business Loans in Singapore.
With such low rates, we expect the take up rate of loans to be higher than normal and that will ensure that most businesses are able to tide through. But with the higher than normal demands, you will also expect slower replies from the banks with the credit controllers needing to go through more documents a day before getting to yours.
If you are looking for the help of a bank loan broker in Singapore, you can speak to us at Avant Consulting.
How Business should take advantage of Business Loans in Singapore