Quick loan credit can help your business stay open in a crisis
The Covid pandemic has been a jolt to many businesses in Singapore and around the world. For the first time in the modern era, the world faced a real crisis that left almost no one unscathed. Many companies that have survived the crisis have done so with the help of fast loan credit.
What is a fast credit loan?
Approved lenders in Singapore offer a variety of loans, some generic and some for specific purposes. The fast loan credit is specifically aimed at borrowers who have an urgent need for cash. It is marked by a rapid and fast loan approval followed by prompt release of the approved loan amount to the borrower.
This quick loan process is not offered by all approved lenders in Singapore. Only the largest and most established lenders have the capital and efficient processing system that can handle quick loans. Many small and medium-sized enterprises (SMEs) in Singapore have used this valuable service to stay in business during the recent – and ongoing – pandemic restrictions.
However, a quick loan approval is more than a stopgap measure. If you invest it using a good plan, it can help seed the long-term viability of the business.
Are you eligible for a quick loan?
Most legal money lenders in Singapore extend ready fast services to businesses and individuals. However, the size of the loan, the interest rate charged, the designated repayment period, and the approval process will likely be different.
As a business seeking a quick loan, you will need to prove that you have a solid business model that can weather the storm. This means that it is more difficult for companies that are already in the red to obtain such a loan (or any other loan). However, it is not impossible.
You need to be able to show the lender that even if you are struggling with the current downturn, your business idea is viable. You should do some basic research to back up this claim and use it as the basis of your loan application.
For example, if you’re in the food and beverage industry and the media is touting a return to normal in terms of dining, that’s a positive you can use. Likewise, relaxing social distancing rules for restaurants shows a lender that your business will soon see more customers and therefore more revenue.
Every piece of news like this indicates that you will be able to repay a loan. None of this information is conclusive on its own, but added together it can help you get a quick loan approval.
The most important thing is to be transparent with your lender. Provide them with all of the company’s financial information such as bank statements, income tax records, and company balance sheets. You should also provide your personal financial information to improve your chances of being approved.
Use your fast loan
So your loan has been approved. Now comes the really hard part: deciding how to use that money.
For struggling businesses, the obvious and most pressing needs would be store inventory, wages and unpaid supplier payments. Only consider spending on other expenses after these immediate concerns have been addressed.
You can also consider investing in automation if it’s relevant to your business. Not only can this significantly reduce your expenses in terms of wages, lost hours and people management, but it also contributes to the “social distancing” factor that is so important these days.
On the other hand, if you are one of the lucky minorities whose business has weathered the crisis well, you should consider investing your loan in future profitability. Consider the crisis you have just overcome and ask yourself these questions:
- Would it have affected your business critically if it had been more serious?
- Could you still survive if this happened again in the near future?
- What would you have done differently if you knew what you know today?
The answers to these questions can help you lay the foundation not only to survive the next crisis, but perhaps even to grow. Who knows, how you use your fast loan today may be the reason you outrun your competition in the next crisis.