Things Banks ask before providing business loans

Things Banks ask before providing business loans

If you are going to choose a bank as your money lender Singapore then you have to prepare yourself for the number of things that the bank is going to ask you for before they provide you with a business loan. Not everyone gets a business loan before everyone isn’t able to fulfill the requirements. Some of the things that you should prepared before you go to the bank for business loan are;

1.      Collateral or Security

Business loans are mostly huge thus you will have to provide something as collateral or security to the bank in order for them to provide you with the loan. It is mostly as asset and the value of the asset determines the amount of loan that you will be getting.

2.      Business plan

Most new businesses that are looking for loans have to provide a fully detailed business plan in order for the banks to consider them eligible for the loan. Make sure you have one with you when you visit the bank for a business loan.

3.      Financial details

If you have running business and you are looking for loans then you will have to provide all the business financial details to the bank as well. This includes all the previous loans and debts that you have on the business and your books as well.

4.      Audited Financial Statements

If you are already running a business and you need a loan to work out the business expenses then you will also have to provide audited financial statements to the banks as well so that they can sure whether they are true or false.

5.      Personal Financial details

Even though you are taking out a business loan you still need to provide details of your personal finances to the bank so that they can figure out whether you will be able to pay back the loan in case the business doesn’t work out.

6.      Insurance information

In new businesses, banks tend to ask them to take out a life insurance on the names of one of the business partners so that the first payment of the insurance goes to the bank in case of any unexpected happenings.

7.      Past Tax Returns

Your past tax returns that you have filled matters a lot as well because banks want to avoid the multiple book frauds that most businesses tend to pull off in order to secure higher loans.

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