5 reasons to take on a business loan in Singapore
Are you a Singapore business owner? Here are five reasons to take on a business loan.
There are numerous reasons your business could require a cash boost. Whether you are planning an expansion, a new product line, or even buying a new delivery van, a business loan could go a long way in turning your plans into reality. Here’s when you might need a business loan:
- To grow your business
Opportunities for growth don’t come along every day, whether the chance to open a new manufacturing facility, launch a new product or expand into a new market. If you have an opportunity to grow your company and need to take immediate advantage of it, it might make sense to take on a business loan. DBS SME Working Capital Loan allows you to borrow up to S$300,000 while DBS Business Loan allows you to borrow up to $500,000. Both loans are collateral-free.
- To stock up on inventory
Inventory is a costly but integral part of many businesses – you first have to stock up on products before your customers can buy them! In particular, if you need to stock up on seasonal inventory ahead of holidays like Lunar New Year or Christmas, costs can skyrocket. In such a situation, a working capital loan or business term loan could help you defray inventory-related costs until all your products are sold.
- To buy new equipment
In today’s competitive market, your business needs up-to-date equipment to stay relevant and competitive. Whether your new equipment is state-of-the-art medical diagnostic equipment, a 3D printer, a new delivery van or even a whole new commercial kitchen, taking on an equipment financing loan with DBS could help you give your business the boost it needs.
Investing in commercial or industrial property could be a good investment for your Singapore-based business. There areseveral advantages to buying a Singapore-based commercial property, such as the absence of capital gains tax on any gains you derive from selling your commercial property. Buying a commercial property could also be a good way to diversify your investment portfolio. Consider DBS commercial property loan if a commercial property or industrial property is an option for you.
- To build credit for future loans
If your company is relatively new, it might be difficult to secure a substantial loan at first. Taking on a smaller loan – and paying it back in a timely manner – is a first step towards building good credit that can help you secure additional funds in the future. Consider signing up for a DBS corporate credit card or overdraft facility to help you with your immediate funding needs.
Need a business loan? Apply online for a DBS business loan today. You’ll need your NRIC, income tax assessment and bank statements, as well as your guarantor’s NRIC and income tax assessments, for submission.
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