MPM Capital stands out by offering business owners real financing solutions that helps with cash flow and business expansions. Time is money. With flexible loan packages and fast processing speed, you gain more opportunities, increase liquidity and capture greater market share.
We offer low and competitive fees. You are not charged until your loan is approved. Easily find out about our financing programmes at no cost. Growing your business should never come with a high price tag.
We approve bigger loans for most of the industries in Singapore. The simple logic being with greater cash flow and liquidity, our borrowers will be able to generate higher returns.
We consider the situation of each borrower carefully. We are empathetic while we evaluate the potential and outlook of the business. Businesses running for at least 6 months may apply.
Get your funding within 24 hours should your loan is approved. With our large paid-up capital, we can. Build stronger relationships with your customers and acquire more market share.
If you are facing cash flow issues or seeking business expansion, you can apply for our financing solutions through our quick and easy online application form. We promise no hidden fees and a hassle-free application process. Trust our process.
With us, you will never need to delay your business plans or keep any customer waiting. Time is precious. With our large loan funding, here’s a few things you can use it for:
Rather than generic loan packages, MPM Capital offers unique and specialized programmes. We research and design each business loan specially for the industry. Offering low interest rates and quick loan processes, we help you get ahead of competitors or tide through difficult times.
1. Credit Criteria
Some institutions are a lot stricter than others. The traditional banks in Singapore for example, have stringent guidelines that makes it very difficult for an SME to get funding without first meeting all their requirements. Other funding institutions like MPM Capital have easier credit criteria, meaning that chances of getting funding are higher.
Also, financial institutions in Singapore will definitely look at your credit score. Credit scores measures how likely you are to repay your debt and is affected by your previous or current debts and loans. If you have a poor credit score or poor repayment records, it is unlikely that banks will want to provide a loan or to even have a meeting with you. Here at MPM Capital, we are more than willing to have a chat with you, listen to your views and ideas and construct the best business loan plan just for you.
2. Interest Rates
Interest rates tend to be different in the various institutions in Singapore. This is important because it lets you know how much you will be paying above and beyond the principle amount. Find out what percentage the institutions in Singapore are charging and also look to see whether the interest rate is fixed or flexible.
3. Monthly Payments
If you have a fixed interest loan, then you will know exactly how much money you will be paying from month to month. This allows time for planning, which is great. If the rate is flexible, then you can expect that monthly figure to vary from month to month as the interest rate fluctuates. The business should be able to comfortably handle its monthly financial obligations and pay the loan without too much strain.
4. Loan Term
It is important to see how long it will take you to pay off the loan. Of course, it is better if the term is shorter because even though the monthly amount you pay will be higher, overall, you will pay less in interest. On the other hand, a longer term will give you respite in monthly payments, but you will pay more in interest.
5. The Total Amount
Always look at the bottom line to see how much you will owe when all is said and done. This figure usually includes the principle amount, the total you will pay in interest and the fees charged to process the loan. The loan that offers you the least amount owed is ideal provided that you can afford to make the monthly payments with ease.
6. Terms and Conditions
Be sure to read the fine print. In this section, you will be able to tell if there are any penalties for late repayments of the business loans. You will also be able to detect any hidden fees that may be covertly placed in the contract.
In Singapore, business loans are issued by several financial institutions and banks. Each offers different loan options, rates and criteria. With online resources, you can compare the interest rates and available loans for Startups, SMEs and MNCs.
An unsecured term loan is the most commonly taken capital loan. It consists of a lump principal amount sum typically ranging from $50,000 to $300,000 for each bank. This type of loan gets repaid through regular monthly installments that usually last between 3 and 5 years.
It is a financing scheme that is backed by the government. Since it got initially launched in Singapore in June 2016, it has undergone several enhancements within the 2020 Budget. SMEs in Singapore can get maximum financing of as much as $600,000.
SME Micro Loans help in funding small SMEs and startups that seek micro-financing of as much as $100,000 for companies that have less than ten employees and revenue that does not exceed $100,000.
It provides a revolving credit line that serves the purpose of financing the purchase of materials or inventory from suppliers. Overseas suppliers often issue Letters of Credit. Trust Receipts with credit terms of between 90 and 120 days can be issued.
Property financing consists of a mortgage loan that can be useful in financing the purchase of industrial or commercial properties. SMEs also have the option of pledging property to the banks to access financing facilities. It is the most affordable form of financing based on the type of security.
Equipment financing is useful in buying fixed assets like equipment and machinery. This type of loan is usually structured as leasing or hire purchase terms.
This form of financing constitutes an advance of 80% to 90% of the outstanding value of invoices. It is ideal for SMEs that deal with credible companies that have long-term credit payments.
Contrary to what some people believe, taking on a business loan is not a step in the wrong direction when financing SMEs. People often link loan facilities to financial problems and conclude that a company would only opt for a loan if its financial situation is terrible. It is a misconception as even well-established and major companies still borrow money.
Several benefits accrue from this type of debt that some business owners may disregard because they are avoiding risks or relying on misinformation. It is essential to be aware of the advantages of business loans for you to make informed decisions regarding your finances.
While it may make sense for a thriving business to have a surplus of cash available and not need any financial assistance, the reality is that having access to additional capital might not always be ideal. It is because it raises the issue of the extra cash not being channelled towards opportunities for expansion and worthwhile investments.
Businesses need to grow, and money is typically required to facilitate sufficient growth. Any extra money will probably go into growing the business and increasing its capacity. Although you can use regular cash flow to expand your business, the speed at which the process gets undertaken may not be sufficient.
Taking a business loan provides an instant way to access cash for the company and speed up the rate of expansion. It also helps to make sure that other available funds go towards operating the venture as the business continues to expand.
Several successful SMEs opt to use business loans to speed up growth and expansion rather than depending on inadequate cash flow to finance the process and take a much longer time to achieve set goals.
Small businesses are susceptible to cash flow issues. It can be hard to maintain stable cash flow when poor business decisions get made, and customers have not paid for products or stock is moving slowly. Having sufficient amounts of money is essential because you need it for regular payments like rent, utilities, and staff.
Businesses can address this challenge with a business loan that ensures running costs covered. A business needs money to flow to satisfy all relevant stakeholders. Loans generally help your business avoid the risk of being vulnerable to downturns and situations that are beyond your control.
There are times when unexpected opportunities arise, such as great deals on vehicles, lower-priced retail spaces, and discounts. A business loan makes it possible for your business to maximize these opportunities on time with the prospect of generating revenue. Companies in sectors such as manufacturing that usually need to spend a lot of money on inventory, labour, and machinery before receiving income. These high costs can be covered with short-term business loans to ensure that the business has adequate cash on hand.
Taking on a loan has the potential to yield benefits for companies in the long run. That is because it develops relationships within the financial sector, which establishes the confidence of lenders when you make repayments on time. It is essential for new SMEs that usually find it hard to qualify for substantial loans when they do not have a credit history that is favourable enough to back their request for funding.
Responsible borrowing can enhance the creditworthiness and credit score of your business to boost your chances of accessing bigger loans in the future while your business continues to grow. SMEs are likely to need additional financing, and taking on this kind of debt is an excellent way to make sure that you do not miss out on getting the cash your business needs.
Equity financing is often perceived to be a better option when compared to taking a business loan. Although the risk is lower and transferred from the owner to investor, losing a component of the business is disruptive.
The owner no longer controls management decisions as investors probably want to have an input. It means that the company may have reduced debt, but the loss of independence may not be worth having more cash at your disposal.
Debt financing enables you to maintain full control along with advantages that include tax benefits as interest payments are tax-deductible. Business loans can get acquired at lower interest rates, and it is easier to plan for expenses since loan payments do not change as much the equity prices do.
There comes a time when any thriving or growing small business gets a chance to grow if it has enough capital to aid the expansion. These opportunities for growth may be as per the plans or arise suddenly. During these times, the ability to finance business expansion is crucial.
Expanding a business relates to the action or spending done to increase profitability, sales or the size of the company. Firms generally seek to expand when their systems appear to be strong enough to support the process of expansion.
When a business has mastered its trade and craft, it may feel that it is ready to service the arrival of new business opportunities. Another critical aspect of business expansion is ensuring that the customer base of the business is sufficiently solid to assist a period of high growth. That is while making sure the customer base continues to broaden during expansion to pay or offset both the long-term and upfront costs of expanding.
Since expanding a business generally requires money, there might be a need for working capital to aid the process when funds are getting channelled somewhere else. Companies choose to expand for various reasons.
These include the following:
The need for sufficient inventory is essential as a business grows. It is imperative to make sure that your product is always available in-stock.
If you have a fantastic service or product, but no one knows it exists, you cannot expect to make a lot of money. Investing in a marketing plan is crucial for growing your business.
Your liabilities may begin to exceed your income when you reinvest in more significant facilities, hiring, marketing and equipment. During these times, it can be crucial to get quality financing solutions.
The dependence on competent workers grows as a business growth along with hiring more people to help the company with marketing and production.
The need for fully functional and modern machinery or equipment increases when a business grows to keep up with more orders.
Companies can outgrow the operating facilities that they currently have.
Business owners should take a swift approach to expansion because waiting for too long can lead to missed opportunities. Failing to meet the demands for growth can have a detrimental impact on your business. The good news is that companies can access capital for expansion.
As you submit your application for a business loan, ensure that you are very clear about the amount you want to borrow as well as the purpose for the loan. The amount you are acquiring should be practical for the goal that you have given.
Financial institutions will also want to check your documents. Therefore, you should ensure that these are up-to-date. It will also be preferable for you to have audited financial statements. Most lenders will do an analysis of your gross profits as well as your bank statements.
Ensure that you have prepared all the documents required beforehand so that no records are missing when you are submitting your loan application. Missing documents is usually one of the reasons why some loan applications get declined. Generally, the files that would be necessary for most business loans in Singapore include the following.
There are some business loans in Singapore that may require you to have some collateral. Ensure that you have a proper asset that can get used as security if the lender requires it.
Ensure that your business website is updated and shows a lot of professionalism because lenders in Singapore usually do their research on potential borrowers using online platforms. Make sure that your business profile on all social media platforms is well updated and gives a very positive view.