Right off our latest business loan series where we spoke about what one can do to get a start-up loan. One of the most obvious answer is a classic personal loan as it relies on your existing salary without taking into consideration the larger cashflow situation of the company. We also broke down one of the most common question of bank vs money lender and why a licensed money lender can be a better choice despite its high cost.   Today, we review one of our licensed money lenders on our platform, Friday Finance and shed some light on how we think of them as a lender. A quick glance at the ..read more

The start-up dream is often foiled by endless challenges with one of them being the ability to get funds. In this series we will provide in as much clarity as we can what you can do to get financing for your dream idea and who are the main providers for them.   The start-up loan is a personal loan  Many start-ups make applications on Lendingpot only to realise that they get directed to a personal loan lender instead. This is because one of the biggest struggle that new companies face is the lack of track record or even an existing operation. Thus, it becomes almost impossible to ob ..read more

Business Loan Series Chapter 5: The Business Card Many people generally associate loans with cold hard cash placed in your hands or in your bank account, but amazingly owning a credit card can deliver the same result with better economics (less the psychological thrill of holding physical cash). This applies similarly to our topic of today: the business credit card. Here we are going to tell you that you can get an interest free working capital loan for your business that is revolving perpetually and why this is something you should always have alongside your SME loan.   Here’s a quick s ..read more

Photo credit: Unsplash Taking up debt financing for your business will either come as the biggest leap to growth or the most dreadful and stressful period of your entrepreneurial journey depending on your lender of choice. It is called “leverage” after all. Aside from the vigilance required to verify the legitimacy of lenders which Lendingpot has gladly assured, selecting the lender for you will depend on your fit with one another. With the numerous lenders available in the market, you’re now spoilt for choice. What exactly are businesses supposed to look out for in their lender? How will you ..read more

Photo credit: Freepik This is a commonly asked question yet lacking in response from most lenders, leaving many SMEs burdened with no answers. Despite the seen ambiguity SME lending is a traditional one that has always relied on a set of key metrics for assessment. This is what many in the industry would call “program lending” where almost 90% of the credit decision is made on hard data with little human assessment of the business. As such, one simply needs to know these key factors to greatly improve their chances of getting their business loan approved. That said, changes to these metrics c ..read more

While a good business idea paves the way for a successful pitch, there are several aspects to consider when it comes to securing funding - one of the most important being the preparations for the actual pitch. This is often applicable for both equity and debt investors. From doing your research to the actual presentation, here are some go-to tips for perfecting your pitch. 1. Know Your Investors Photo credit: Unsplash It doesn’t matter if your idea is brilliant, but not something your investors are looking for. As such, it’s important to be thorough during your research, to ensure your idea ..read more

Business Loan Series: Revenue-based Financing So we have covered our top 3 loan products available to SMEs, which are (1) Unsecured business term loan , (2) Invoice Financing, and (3) Property-backed Loan. Despite these available options, many SMEs still struggle with obtaining financing as they do not have invoices with large corporates or have a property to collateralize.   Thus, we will be introducing a new alternative, Revenue-based financing that has gained popularity over the past few years. Essentially what revenue-based financing does is that it reduces the pressure of fixed repa ..read more

Photo credit: Unsplash What goes into the decision-making process? After deciding to take up a business loan comes the process of deciding how much to borrow. As business loans are a considerable obligation, it is wise to consider the different factors involved when picking the appropriate loan amount.  Here are some considerations to have when deciding the amount of financing required.   Determine your cashflow gap Maximise “free” financing available Ascertaining your repayment capability   As a whole, these 3 simple processes can help you ensure your loan is properly ..read more

Business Loan Series: Property-backed Loan While a business term loan is heavily tied to your past business performance; restricting you in terms of your loanable amount and interest rate, backing your loan with a property might offer you substantial freedom and savings. These apply to private properties only (non-HDB) which includes residential, commercial & industrial properties.   Here are some reasons why a property-backed loan is a good idea.   1)    One of the lowest cost of financing for a sizable loan quantum This is because properties act as additional wa ..read more

Business Loan Series: The Business Term Loan A simple straightforward & collateral-free loan A business term loan is the most common type of financing that allows business to obtain financing without the need of any collateral. They can be used for pretty much any business need from working capital to purchasing of new equipment.  It is to note that terminology might be differ for different banks. Some banks call it a Working Capital Loan (WCL), SME Micro Loan and also the Temporary Bridging Loan (TBL) which was made popular through its availability during the pandemic. There ar ..read more