Running a business is not easy and one of the essentials for smooth operations is having sufficient financial liquidity. While it is comparatively easier for established firms to get loan, small firms can face many challenges when finding the best financing alternatives.

1. How to Get a Business Loan for Your Small Business?
Running a business is not easy and one of the essentials for smooth operations is having sufficient
financial liquidity. While it is comparatively easier for established firms to get loan, small firms can face
many challenges when finding the best financing alternatives.
If you are a small enterprise owner looking for a business loan in Singapore, here’s a look at few factors
to consider before making the decision to fund your business:
Short-term financing options
Your business may simply need cash to maintain daily operations. There are different short-term
financing options to choose from. Here’s a look at few of them:
1. Working capital loans
SME’s with short-term cash needs for day-to-day operations including payroll, rent, and utility bills
might consider working capital loans. Interest rates are higher for working capital as short-term working
capital loans are considered riskier. Despite having a higher rate of interest, the working capital loans
can be crucial for a business which needs quick funding for a short-period of time.
2. Invoice financing
SMEs which require funding and have issues a significant amount of invoices for completed work may be
suitable for invoice financing. It is a finance option which helps a business to receive a loan based on
invoices owned from customers. It is less risky with a comparatively low rate of interest.
3. Revolving credit
If you are looking for a flexible business loan in Singapore without the hassle and delay of application
process or strict repayment schedule, a revolving credit agreement might be a good fit for you. It allows
businesses to draw up to an agreed upon amount any time. Just like credit cards, the interest is charged
only on the borrowed amount.
4. Micro loans
Micro loans offer financing in smaller amounts and for a shorter period. However, they come with a
higher rate of interest as they are considered more risky. A micro loan is an option only if your
immediate need for cash outweighs the interest rates.
Apart from these short-term loans, you can also apply for long-term financing options such as business
term loans, asset purchase agreements, and equity financing. Explore the web for more information on
long-term financing options in Singapore.

2. Just like you need a business loan for professional needs, a personal loan in Singapore is for meeting
personal expenses such as medical, education, repairs, bills, etc. A personal loan is unsecured and
advanced on the basis of the borrower’s credit-history and ability to repay the loan.
Search the web for more information and suggestions on how to choose the best personal loan in
Singapore.