Private Financing Singapore
Private Financing is a form of short term borrowing which is extended by private funders or a lender to clients based on unpaid invoices and potential incoming funds. Private Funding, like the name suggests, are funding that need to be repaid between 1 to 9 months although some private funders might be willing to stretch it to 10 months or even 1 year. This is different compared to the 4 to 5 years for typical business loans from banks.
What Is The Process Like?
Compared to Banks, Private Financing empowers you to obtain short, or long-term financing. Each private financing option has individually tailored criteria to your needs so you might find it much more flexible compared to traditional bank lending. Some of the more popular short-term loans in Singapore include credit lines, invoice financing and bridging loans.
Private financing is especially valuable for small businesses and start-ups as typically it is hard for them to receive financing from banks, given they do not meet the minimum operating age requirements that most banks have for longer tenor loans. Companies can also take up private funding if they find themselves in a sudden need for money.
As private financing is of shorter tenors, they are usually less risky and thus, lenders take less time to process the loan and borrowers can obtain the needed funds more quickly. Short-term loans also generally have easier requirements compared to longer-term loans. Downsides of private funding, however, are that approved loan amounts are usually smaller, significantly higher monthly installment and potentially higher interest rates.
How Does Private Financing Benefit Me?
Private Financing enables you to get tailored and custom solutions for your business. Short and Long Term funding is available for different scenarios. If you have not qualified for bank lending OR require tailor made solutions, then private funding might be for you.
Funds can arrive as early as 5 days after an on-site visit, if we have all the documentation we need, and your financing is approved. That’s great news for busy entrepreneurs who need to expand in a hurry, and even better news for your business growth.
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