4 Kinds of Legal Money Lender in Singapore
In Singapore, an SME working capital loan is one of the most common assisted financing loans used by budding entrepreneurs.
But for those new to the game, the idea of getting an SME working capital loan from a legal money lender in Singapore can be daunting.
So, to help young entrepreneurs out, we've made a list of four places they can apply for an SME working capital loan!
Banks
Regardless of who you ask, a bank is the best money lender in Singapore. Despite the various institutions on the island offering financing, they remain to be the best legal money lender.
Banks are well-known for their well-structured and well regulated crediting lending functions. They offer nearly all the forms of assisted financing available in Singapore.
If you're thinking about getting an SME working capital loan, you can try sending an inquiry to your local bank.
P2P Crowdfunding
Over recent years, Singapore saw a significant increase in the peer to peer crowdfunding available on the island.
P2P crowdfunding is the latest fintech trend that's growing more and more popular as the years go by. These institutions offer debt financing to small to medium businesses by gathering funding from groups of investors.
Utilising an online crowdfunding platform, they gather borrowers and lenders while they act as the facilitator for the financing between them. Experts believe that they can become the next leading legal money lender in Singapore.
Financial Institutions
Similar to banks, financial institutions offer lending programs to SMEs and other companies. Their only difference with a bank is that they don't operate with a full banking license.
FIs are special lenders that focus on asset-based lending like factoring or equipment loans.
Alternative Lenders
Lenders operating on a smaller scale are still considered a legal money lender in Singapore. And depending on these alternative lenders, they serve niche markets and have private investors that directly lend funding to start-ups.
But because of their small-scale operations, they tend to have the highest interest rates.
To learn more about applying for an SME working capital loan in Singapore, visit TT Media's website.
