Small and Medium-Sized Enterprises in the Loan Era

Introducing the World of Loans

The concept of taking out a loan is a tale as old as time, dating back to the ancient era; in the Mesopotamian times, it was more customary to lend silver or grains, and in ancient Rome, things really took a turn: the invention of contracts that were used in pawnshops, for example, is what marked the beginning of loans. The shape of the economy has changed as the years have gone by, managing to evolve in ways previously unimaginable, bringing new opportunities to both individuals and businesses looking for some help or a way to strengthen the already existing capital.

Small and medium-sized enterprises (SME) have had a lot to gain from the evolution of technology that is related to money loans, as it has become increasingly easier to access the needed funds without so much bureaucracy, but by digital means that have been put in place just for that. Small and medium-sized enterprises are seen as the backbone of the economy due to their being essential in the creation of new jobs and economic growth, especially in Singapore, where they have been continually ascending, creating space for the SME loan.

Small and Medium-Sized Enterprises: Getting a Clearer View

The enterprises of small and medium size have taken their rightful place in the importance chart, as they have proven time and again their utmost importance in a well-oiled economic machine. The evolution of the Singapore SME loan came as a natural consequence in order to help businesses with their ventures, while taking into account the greater good that comes out of it. In order to qualify as an SME (especially in order to be granted an SME loan), a company needs the following:

• to have fewer than 200 employees;
• to be registered (or, at least, incorporated) in Singapore;
• should have at least 30% of local shareholding held by Singapore citizens.

With the rising importance of an enterprise in this category, being given a Singapore SME loan is detrimental for these companies to continue working and employing as many people as possible, as they are already major employers and substantially contribute to Southeast Asia’s overall GDP. There is also the aspect of flexibility that is often appreciated in these types of companies, as no matter the market changes that might come, they are more adaptable than any larger corporation, by comparison.

Business Loans: Moving Forward Together

Applying for a business loan in Singapore should not be done before thoroughly researching the right steps so as to have a successful outcome. First of all, preparing a business plan to present is crucial so that the ones lending money know what everything is about; secondly, putting together all the existing financial statements, such as balance sheet, cash flow, or income statement, can further strengthen the application by proving there are means to return the loan. Last, but not least, being able to provide the tax returns and bank statements is a show of faith, proving that the business applying for a loan comes with good intentions.

There are various ways in which getting a business loan in Singapore can come in handy, such as for the expansion of the existing operations, or in order to cover expenses, as well as maybe refinance or consolidate debt. The many loan options allow the enterprise to choose the best-fitted one, of course, with help from personnel who are carefully instructed in order to deliver the best possible outcomes. Factors related to eligibility also play an important part in the process, as the credit history, the age of the business, and, very importantly, the profitability of the enterprise, are taken into consideration before a final offer.

The Era of Digital Loans: Technology Working Its Magic

The time to apply for an online loan (including a business loan) has arrived, offering many advantages, especially less bureaucracy, as well as less time spent on the road to close a deal. Digitalization has taken over many aspects of everyday life, including the economic sector, where it has managed to open many doors to new realms. The role technology plays in the whole lending process is a detrimental one, as it offers online platforms and artificial intelligence that can analyze many factors, such as creditworthiness and other important and helpful aspects for the lending company that offers a business loan.

Technology has a way of working its magic if it is put to good use by easing many tasks that otherwise would take a lot of time to perform. Machine learning has become a reliable way of doing so; therefore, investing in the improvement of the process has been a very important step that many lending agencies have taken. There are plenty of advantages to taking a digital loan, especially related to how fast it is approved and how accessible and convenient it is. There is also the aspect of custom offers that can help a great deal in many situations.

The Future is in Great Hands

As the digital page has already been turned and everyone is making the most out of it in order to ensure a better quality of life, the next great things lie in concepts such as alternative data that relates to credit scoring (such as phone bills or online transactions), decentralized finance (which is mainly about lending without the involvement of banks, using decentralized platforms) or even a greater inclusion, especially related to the rural areas or other communities that are undeserved.

As with everything that keeps evolving, so does the lending field, bringing new possibilities to people and making the process a lot more accessible so as to help more people in need. Whether referring to the speed at which everything is set to happen or to the artificial intelligence becoming more and more helpful, the future is in great hands and the responsibility to keep it that way lies on everyone involved.