When applying for a business loan Singapore, you must have a plan. Lender and banks will review your personal credit history and FICO score, especially if your company does not have a track record of producing revenue. Among the personal credit information that may be considered are:
1 Financial statements, banking records, and sales figures. 2 How much cash flow banks have, what they spend on, what customers buy, and how steady their customer base is. 3 How long the business has been in operation, how many open accounts it has open, and how much debt to income ratio of that business is. 4 How much equity and assets the business owns, in comparison to their debt ratio, and money they owe to other entities and banks.
Lenders and banks will consider your personal spending habits, including how you use credit cards and handle installment debt. Lenders look askance at individuals with substantial personal debt, as they are less likely to withstand a reduction in income during slow times.
Lenders and banks pay close attention to balance sheets. Any uncertainty or discrepancy of their contents will raise a red flag. They will also expect a business summary that describes in detail: the nature of your business; how the funds from the loan will be used; and available working capital, with descriptions of how it will be allocated. It should also describe how you plan to differentiate your business from competitors.