Frequently Asked Questions
For Corporate Loans
$ How much can my company borrow?
Most banks place a limit on the maximum amount they can loan to a company.
This amount differs largely between banks and is also dependent on the company’s industry, revenue and cash flow etc.
As companies gain traction, more financing support will be required to helm larger projects. Therefore these maximum limits might result in rejections for subsequent loan applications from existing bankers.
With our established and extensive networks of banks and financial institutions, we can find and match the most suitable banks pertaining to your current situation.
$. How long will the process take?
Processing time is difficult to predict. The typical turnaround time for business financing applications is 2 to 4 weeks.
The turnaround time takes this long because
- There are many levels of internal coordination within the lending institute
- There are document to be verified by different parties
- Ever-growing list of compliance checks and stringent guidelines
In an emergency situation where funds are needed urgently, we can assist to shorten the turnaround time by 1-5 days with our familiarity on the documentation and information banks require.
$. Why can’t I get a loan?
There are many factors lenders use to evaluate your application, most applications are rejected due to many reasons, for instance
- Not approaching the correct banks
- Directors’ personal credit profiles
- Limits to financing from existing bankers
- Lack of understanding on business financials
$.How can I check my application status?
You can contact our friendly consultants at firstname.lastname@example.org.
$. How do I know that I am getting the best rate?
Are you certain that the terms and interest rates your existing bankers offer you are the most competitive?
While there is no guarantee that you will always get the lowest interest rate, at least you can be assured that you would get the best advice from our friendly consultants.
$. Which financing products are suitable for my company?
It is difficult to identify which products suit which SMEs. Every SME has their own circumstances and needs.
However you may find the list of financing tools as follows:
- term loans
- trade financing (Letter of Credit/Trust Receipt)
- receivables financing
- asset financing
- project based financing
Through our expertise and experience in SME funding, we can describe to you the various financing products in basic terms and explain how you can best utilize these tools for your business.
$. Which particular bank or financial institution should I approach?
Well, we have close to 20 partnering banks & financial institutions (FIs) serving the SME financing segment.
There is no definite answer to this because different banks have varying credit criteria and risk appetite.
With our familiarity with the credit criteria of the various banks, we can help identify the most suitable banks for your company’s profile to ensure the highest chances of approval at the best terms. We have to emphasize that assisting SMEs with the right business financing remains our core business.
$. How will credit ratings affect borrowings?
When applying for SME financing, the director’s personal credit record will usually be searched by the applicant banks. Too many searches by the banks will adversely impact his/her personal credit rating.
If the credit rating is low, the funding application would inevitably be adversely affected.
Do note that the credit rating is tied to the director, and not the company.
Hence, even if he/she applies for funding for another company he/she owns, his/her application might still be affected if his/her credit rating is low.
One common pitfall that causes credit rating to plummet is to apply to every bank in the market. This is actually not advisable because if most of the banks you apply to reject your funding applications, your credit rating might drop.
A low credit rating will hinder your business’s future funding applications approval chances.
A SME financing specialist will be able to help identify which banks’ credit criteria are suitable for your company’s profile to maximize application approval chances.
$. Can a new start-up borrow?
New start-ups with at least 3 months in operation may apply for the micro loan scheme and tap up to $100,000.
Unfortunately, most banks would not finance newly incorporated start-ups.
If your company is a new start-up still in the R&D phase with no attributed revenue yet, it is advisable that you source for equity financing or venture capitalists, rather than debt financing from banks.
A competent business loan broker would be able to help new companies with at least 6-12 months of operational record seek out bank financing. But do expect limited options and smaller funding amounts for a start.
$. The rate Bank A offered to me is the same rates as yours. Why should i come to you instead?
The rates that we offer are either same or better, hence you are not in any way disadvantaged by going through us. In addition, we also offer the best selections from 16 other banks & financial institutions for your selection and consideration, ensuring that you are always getting the best deal around in the market with us.
$. Does a broker always get better rates?
The rates that we offer are consistent with a direct walk in customer to the bank or financial institution. In some instances, due to bulk orders, promotional tie-up and close working relationship with the banks and financial institutions, we are able to offer non-standard exceptional rates better than a direct walk in customer.
$. Are we a money lender?
No. We do not participate in any form of direct money lending activities.
$. Do we finance the loans?
No. All facilities are financed by licensed banks, financial institutions and reputable lending firms.
$. Why should I appoint a mortgage broker / loan broker?
We offer a one stop multi bank, multi product price feed solutions vs a single bank pricing offer. A single bank may also offer differentiating product lines & features that are not able to best meet the needs of a customer or a business. In summary, we only pick out the gems.