The Covid pandemic has been a shock to the senses for many businesses in Singapore and around the world. For the first time in the modern era, the world faced a real crisis that left almost no one unscathed. Many businesses that have survived the crisis have done so with the help of a quick loan credit.
What is quick loan credit?
Approved lenders in Singapore offer a variety of loans, some generic and others for specific purposes. The credit quick loan is specifically for borrowers who are in urgent need of cash. It is marked by a rapid assessment process and fast loan approval followed by a prompt release of the approved loan amount to the borrower.
This quick loan process is not offered by all approved lenders in Singapore. Only the largest and most established lenders have the capital and the efficient processing system that can handle fast loans. Many small and medium-sized enterprises (SMEs) in Singapore have used this valuable service to stay in business during recent and ongoing pandemic restrictions.
However, a quick loan approval is more than a stopgap. If you invest it using a good plan, it can help kick-start the long-term viability of the business.
Are you eligible for a quick loan?
Most legal money lenders in Singapore extend ready fast services to businesses and individuals. However, the loan amount, the interest rate charged, the designated repayment period, and the approval process will likely be different.
As a business seeking a quick loan, you will need to prove that you have a strong business model that can weather the storm. This means that it is more difficult for businesses that are already in the red to obtain such a loan (or any other loan). However, it is not impossible.
You need to be able to show the lender that even if you are struggling with the current crisis, your business idea is viable. You should do some basic research to back up this claim and use it as the basis for your loan application.
For example, if you are in the food and beverage industry and the media has touted a return to normal in terms of dining out, this is a positive you can use. Likewise, relaxing social distancing rules for restaurants shows a lender that your business will soon see more customers and, therefore, more income.
Every piece of news like this indicates that you will be able to repay a loan. None of this information is decisive in itself, but, taken together, it can help you justify your loan approval quickly.
The most important thing is to be transparent with your lender. Provide them with all of the company’s financial information, such as bank statements, income tax statements, and company balance sheets. You should also bring your personal financial information to improve your chances of being approved.
Use your quick loan
Thus, your loan has been approved. Now comes the hard part: deciding how to use that money.
For struggling businesses, the obvious and most urgent needs would be store inventory, salaries, and unpaid supplier payments. Do not consider spending on other expenses until these immediate concerns have been addressed.
You may also want to consider investing in automation if it is relevant to your business. Not only can this dramatically reduce your spending on wages, lost hours, and people management, it also contributes to the ‘social distancing’ factor that is so important these days.
On the other hand, if you are among the lucky minorities with a business that has weathered the crisis well, you should consider investing your loan in future profitability. Consider the crisis you just went through and ask yourself these questions:
- Would it have critically affected your business if it had been more serious?
- Would you still be able to survive if this happened again in the near future?
- What would you have done differently knowing what you know today?
The answers to these questions can help you lay the foundation not only for surviving the next crisis, but maybe even for developing yourself. Who knows, the way you use your quick loan today may be the reason you will overtake your competition in the next crisis.