How To Identify The Right Licensed Moneylender For You?

It is unusual to hear about people who haven’t borrowed money from others because there will be times you will find yourself in a financial bind. Even if you are rich, you need to take care of your money because it may run out in one go if you use it for business. You may also need to borrow money for extra capital.

Considering the importance of having money, you need to use a licensed moneylender to ensure you do not get a headache when you need to borrow funds. In Singapore, loan sharks are common and hide in the guise of being licensed moneylenders to fool unsuspecting borrowers.

Licensed moneylenders are licensed by the government and indicate everything borrowers need to know about their personal loans. Loan sharks, on the other hand, operate without rules and they will change their rules as much as they like.

If you are considering to apply for a personal loan, how can you determine which ones are licensed and which ones are loan sharks?

Here are some tips we can recommend to ensure you can sign with a licensed moneylender for your money needs:

No 1 – Do your research about the moneylender’s background

The first thing that you must do to ensure that a moneylender is worth your attention is by checking their background or history. With the help of the internet, you can easily search for the moneylender’s background and their website. Licensed moneylenders tend to have up-to-date information about their loan offerings and indicate their contact details. You can also check up on individual websites that review moneylenders.

No 2 – Check the site of the Ministry of Law

When you have narrowed down a small list of moneylenders you would like to inquire from for their personal loans, you should then check if they are licensed by the Singaporean Ministry of Law.

The Ministry of Law has the registry of all licensed moneylenders in the country, which makes it easier for the government to monitor these moneylenders. If these moneylenders somehow violate the government’s policies, their licenses will be revoked easily. The list is regularly updated to ensure that prospective borrowers do not get tricked by loan sharks.

If you do not see the moneylender you listed in the registry, it means you are looking at a loan shark.

No 3 – Licensed Moneylenders Should Have an Office

A licensed moneylender should not just have an updated website where you can inquire about the personal loans they offer and apply, they must also have a physical office you can visit. Loan sharks often have fake addresses or conduct all their businesses online.

When you visit a licensed moneylender’s office, you would see that the office is run by a large number of staff. Once you get the details you need from their website, you should be able to make a follow-up call directly from the moneylender through their hotline and visit the office. At the office, make sure you sign your contract there and not anywhere else because that may mean you are signing for a loan with a loan shark.

No 4 – The Interest Rate Should Not Be High and Beyond Government Standards

Licensed moneylenders must abide by the interest rates set by the market and the government. Having a set interest rate ensures borrowers that it will not change at any time, even if the market rates change. If your moneylender of choice is in the registry of licensed moneylenders, you can be assured that the interest rate they use is approved by the government.

Loan sharks, on the other hand, would often change their interest rates without warning.

No 5 – Licensed moneylenders only charge certain fees for their personal loan offerings

Licensed moneylenders are only allowed to charge three types of fees aside from the usual interest rates to their clients. When you pay these three fees, no more charges will be asked from the borrower.

Here are the three charges that licensed moneylenders include in their loan offerings:

  • Initial service fee – This fee is used to process the loan and it must not be worth more than 10% of the total loan amount.
  • Legal fees – If there is a chance the moneylender has to go to court to get you to pay your loans, this is the fee they will charge you.
  • Late payment fees – If you end up defaulting your loan, this is the fee that will be applied.

The contract you sign with the lender is the only document that would connect you with the lender. Before you sign the contract, make sure everything you need to know about your personal loan is there – from the loan amount, fees, interest rate to duration- and it must be prepared by a lawyer. Do not sign blank or incomplete documents because it may be used against you.

Review the contract and ensure that you are satisfied with it before you sign it with your signature. Your lender should also sign the contract.

Loan sharks will not insist on the contract since it will give them a disadvantage. You must also not let the lender keep your personal documents since it may be used against you.

Here are some other things you should remember when determining if you are dealing with a licensed moneylender or a loan shark:

  • Licensed moneylenders do not send you SMS or call you to offer new loans and other stuff. Licensed moneylenders are forbidden from sending SMS advertising messages or calls.
  • Licensed moneylenders also take into account your financial capacity before they let you borrow money. They would do their best to ensure you can pay them and adjust their loan terms when your need is great. Loan sharks do not care if you are capable of paying the loan.

Final remarks

When you are in need of quick funds for emergencies and other crucial things, you need to ensure that you are signing with a distinguished and trusted lender. Do not immediately agree to a loan offer that appeals to your capacity because they may not be licensed by the government. If you accidentally sign up with a loan shark, it will be difficult to break free from them and the government may find it difficult to assist you.

A licensed moneylender would consider everything before they lend you funds. Once they lend you money, they will ensure you understand everything about the loan and not threaten you should you be late in any way. You will also be protected by the law should the moneylender make a mistake.

So, before you go rush to a loan, research!

We wish you luck!

How To Shop Around For A Loan In Singapore?

There will always be a point in one’s life that you may need to borrow money to pay off something. It could be borrowing money through a credit card so you can purchase an item or seek a secured loan to fund your business.

No matter where you need the money, there will always be a corresponding loan program and terms that will match it. In Singapore, you can seek all types of loans from both banks and moneylenders depending on your needs.

However, a lot of people tend to neglect when it comes to picking loans is that every moneylender or bank has their own prices for the loans they offer. One moneylender may charge high for their personal loan programs, but another moneylender can provide the same personal loan with a lower interest.

Know What You Need

Before you go shop for loans, it is best you know why you need it in the first place and how much you actually want to borrow.

If you are after smaller loans, a lot of offers are available for you to check out.

Smaller loans do not require you to have an excellent credit score, as well as when you are checking out credit cards. Credit cards tend to be diverse in the benefits they offer, as well as the rates they have per month. Smaller loans and credit cards are often retrofitted for a consumer’s use so you can always get a perfect fit for your needs and even find ones that come with benefits you did not know they offer.

For larger loans, consider where you will use it – like for business or travel – and check out the options from there.

If you are going to borrow for your debts, it is best you consider other options. Lenders will not approve loan applications if they are to pay off other loan debts. You will need to ask a debt manager to assist you in paying off these dues before you can apply for a loan.

Research First

Once you determine the amount and purpose of the loan, it is ideal to research all of the ones available in the market and learn everything about it. You shouldn’t immediately sign up for a loan just because it can provide you with the money. Some loans may not even serve your needs and you end up being stuck with them until the repayment period is done. There can be other financial services available which fit your needs.

Researching will ensure that you can narrow down the options you can use. It may be difficult, but it is worth it when you find the one you need.

When checking out for a loan, check out all the available financial institutions that offer the loans before you request a loan. If you are currently getting yourself pre-approved for a mortgage loan, for example, lenders can provide you with the various loan options available for your needs. Once you find the one you want, you can make the deal and make the offer to the house you want.

As you wait for the offer to be accepted, you have some time to check out other lending options available to you. You can take this time to approach moneylenders who can check out the quote(s) given to you by your primary lender and give you their offer based on it. Some lenders may give you a lower interest rate, provide grants or even offer extra options or benefits when you avail their product.

When you see these offers, pick the one which you can benefit more from lesser cost before your offer is accepted. If you failed to pick a good one from your second review and your offer is accepted, you are stuck with your primary lender.

Before you also agree on any offer, ask the lenders about their credit qualifications and requirements for their loan programs. Some moneylenders and banks may highlight their requirements on their websites, but others may not do so. You can call them up and ask everything you want to learn about the loans while you consider them.

Know Your Credit History

Once you narrowed down to the lenders you want to seek a loan from, you will need to consider if you have the “right” credit that will help you manage these services. Remember, if you have “too much credit” and you opt to get a new loan account, you may tarnish your credit rating if you failed to keep up with repayments.

If you are uncertain if your credit history is good or bad, you can always request your credit history from Credit Bureau Singapore and their partners. They will provide you with a 12-month report of your credit history and indicate your credit rating.

Alternatives for Poor and Bad Credit

When you know your credit rating and it indicates you have a poor or bad history, you can use several means to build your credit rating back up. Some good examples are paying your bills on time for 12 consecutive months or paying your bills in full.

However, if you do not have the time to rebuild your credit rating or you do have black marks on your history due to bankruptcy or default, you can check out licensed moneylenders that offer loans for such backgrounds. Unfortunately, if you do apply to these moneylenders, the amount you can borrow may be small and the interest rates can be higher than the standard personal loans they offer.

Final Remarks

When shopping for a loan, it is important you do not immediately pick one without considering all the options available. Take some time to research, check other offers, know your credit history and consider the loan you need before picking a loan. If you find something wrong or missing with your requirements, remedy it immediately before you apply for a loan.

If you picked one haphazardly or you did not consider your credit rating or your needs, there is a possibility it is mismatched with your financial capacity and repayment preferences. It can also cause mishaps to occur and it can be tricky to sort it out when it happens.

 

4 Ways To Obtain Quick Cash In Singapore

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Life has its ups and downs and there are times when you might require some extra funds. These can be for compensating sudden expenses or even cover some financial emergency. This can be existing credit card bills.

Or medical condition that requires immediate attention. In such challenging times when an individual might be reluctant to look for help from relatives or friends. Legal moneylenders are a fitting solution in helping you clear up your financial situation.

To avoid lengthy approval processes at the bank. You can use the following methods of acquiring quick cash from licensed moneylenders:

Payday Loan

When faced with an unexpected emergency situation. Getting the payday loan will work best for you since it will be approved and availed to you within several hours. This loan is also referred to as cash advance loan. This type of loan is ideal especially when you find yourself in a financial fix. Yet you are required to meet short-term requirements.

Instant Cash Loan

With a flexible repayment schedule and instant approval. The instant cash type of loan is the efficient solution when you need some extra funds for handling an emergency. The rates of interest on both personal loans and instant cash loans are set at 4 percent a month or 48 percent per year. So there is no difference.

Personal Loan

This is mostly an unsecured type of loan. The personal loans do not demand that you pledge your assets such as your house or car. Due to their low rates, the personal loan is often preferred when making huge purchases. It can also be used for debt consolidation.

Foreigner Loan

Based on the name, this loan type is open for foreigners in Singapore. The foreigner loan will be useful for you to cater for relocation expenses (like utility, rent, medical). This is as you settle in, more so in a country like Singapore that has a high living cost.

Quick cash loan will offer you the financial assistance you need to handle any pressing concern. Therefore, you can consult with your preferred moneylender for advice on the best move to make. Working with a licensed moneylender will offer you an efficient solution which will meet your needs.

Helpful Tips For Getting Fast Cash Loans By Licensed Lenders

Have necessary documents with you before applying

As you make your application for a loan you will need some form of identification. Any type of ID, Singpass, and some other valid documentation that shows who you. Even then make sure it the accepted forms of identification.

Also, check that you present proof of employment such as your work pass card. You need to also submit 3 most recent payslips from past months. With this, your moneylender can proceed to process and offer you the loan. Provided that the lender is able to determine that lending to you involved a low risk.

To top it you need to have a steady income source. The licensed moneylenders can trust that you will repay the debt on time because you have a job.

Sign Only a Complete Contract

If you accept the conditions detailed in the loan agreement. Then make sure to only affix your signature on a complete contract. Also, make sure that your lender gives you a copy of the signed loan contract.

In the money lending conditions, it is important for you to do this. Failing to acquire a copy of the loan contract can only mean one thing. The loan taken out can be considered to be a fraudulent act. As a caution, do not sign any contract that seems to be incomplete. The contract should clearly detail the conditions of the personal loan. The repayment period of your loan should also be included as well as interests that your loan is attracting.

Should it happen that such information is omitted, make sure that you ask for it from the moneylender. Alternatively, you can choose to deal with a different moneylender.

Ask About Requirements For Collateral

Prior to taking on any loan, make a point to ask about the collateral requirements. When a loan requires collateral, it then means that you may borrow the loan. But, if you do not repay the loan, your moneylender can claim the asset/property you had presented as security. This security could be fancy jewelry or your car. You could opt to put up your home depending on the amount you wish to take out.

Know Ways Of Identifying Illegal Moneylenders

This has to be the first thing to do way ahead of applying for a quick cash personal loan. Make sure that you always check if the moneylender you choose holds a valid license. If your lender of choice is not registered, then it is best for you to pick another moneylender. A lender who is not certified is a red flag for a possible scam.

Whenever you are making a personal loan request, confirm that all your documents are given back to you. Also, remember to pick your identification papers from your lender. This is because they have no other reason to keep your private documents. When your lender wants to retain them, be cautious careful, it is likely he is not genuine. Thus it is advisable for you to look for another moneylender.

Avoid Lenders Who Might Try To Threaten

You might come across some moneylenders who will try to frighten you. Some will even treat their borrowers in a harsh way. Always, avoid dealing with moneylender’s who do such things because you merit to be treated fairly and with respect.

Summing Up

The cash loan is best for times when you urgently need to manage some financial challenges for a short period. But, the loan amount should be within your current salary. Meaning you will easily repay your loan in the next month. Always take an amount that you can repay with ease, thus you will avoid the debt spiraling out of control. Some loan options for you to consider for quick cash are payday loans, personal loans, foreigner loans and instant cash loans.

What To Do If You Run Out Of Money During Renovations?

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Are you currently trying to renovate your home for a makeover?

Making expansions for your family?

If you are currently trying to start up a home makeover, you would require a lot of money to sort everything out. You have to consider the construction work, paints, furnishings, and even expert advice to make sure your dream renovation clicks together.

Funding renovation work can be tricky, especially if you do not have much saved for it. You can check out a moneylender if they offer a personal loan you can use for renovations, also known as renovation loans. While it can help in paying the bills for your renovations in some way, you may need more funds if your construction work is still not finished.

Should you find yourself in this predicament, do not worry because here are some tips you can try out to still get your renovation done when you run out of money.

Work on critical areas first

When doing a renovation, it is important you finish key areas that need to be used first before the rest of the house should be sorted out. Tell your contractor to start working on the master bedrooms, toilets, kitchen, dining room and laundry area before undertaking the rest of the house.

Even if you may use it, the living room can be left last in your renovations because it is actually the most expensive part of the house. You can also tell your contractors to leave the decorations when you have the funds and focus on making everything work first.

Rent Out Unfinished or Unfurnished Areas

To raise money for your renovations, why not try out renting out the unfinished units of your building to others. Let the tenants of the unit continue with the renovations and purchase everything to make it work for them. When they start paying the rent, you can then continue with your other renovations. The tenant can even renew their lease to you when they fully furnished the unit and as a result, you can get a steady flow of income that could help you finish your project.

Unfortunately, doing this does have some setbacks because unfinished or unfurnished units should only have low rental rates. It may not be enough for your renovations but having it available for tenants is still better.

When your tenants leave, you can easily offer to buy their furniture so you do not need to renovate the unit when they leave.

Work with an incomplete kitchen

You do not have to have your kitchen completely functional when you are renovating your home. Focus on getting the cooker, fridge, kettles and the microwave to work in a small pantry spot for now so you can at least make small meals while the renovations are being done. Like your living room, kitchen renovations can be very expensive because you have to work with the wiring and gas lines.

Save some money first before you get this room sorted.

Seek a personal loan from a moneylender

If you are just short of finishing your work, try checking out low-interest personal loans from legal moneylenders to fund the rest of the project. Do not use your credit cards to settle the remaining bill of your renovations because it would just add to your problems and also increase your debt as they have high-interest rates.

Personal loans can have interest rates as low as 4.55% and as high as 8.5% so you need to research which moneylender and which repayment plan would work for you.

If you are considering a balance transfer, it has an interest-free period of 6 months before they include an interest rate similar to your credit card bills. When you are considering this method, make sure you will be able to pay it during the 6-month duration.

Talk to the subcontractors

Your main contractors often hire subcontractors to finish certain parts of the house, like the electricity lines, plumbing, and lighting. If you want to save some money for these parts, why not speak to the subcontractors to see if they are open to working for these parts for a smaller cost.

Contractors tend to add extra fees when they use subcontractors. If you go directly to the subcontractor to sort out one part of your renovations, you can see a big drop on your renovation bill.

Of course, before you approach subcontractors, make sure they have proper insurance because if they manage to damage your electricity lines or plumbing, you can get the money to fix it from their business insurance. Damages caused by subcontractors are not part of your home insurance.

Extend your current loan

When you find yourself having troubles financially, it does not hurt to speak to the bank if they can stretch your renovation loan limits. If you properly tell them your situation, they may be willing to extend your contract, especially if you regularly pay your loan. They may also recommend that you get a guarantor to give you a larger loan. Should this happen, you will be able to finish your project!

Check other contractors

Before you begin renovating your home, try checking out other contractors for their prices for this type of renovation. When you do have a contractor already but the prices are very high, try looking at the rates of other contractors. They may be up to finishing the work within your budget.

Of course, if you do not have enough funds, it may not be as perfect as you may like.

Conclusion

Home is where the heart is and should be a place where you can relax and forget the day’s stresses. If you decide to renovate your home, make sure you are ready for all the possible challenges you may face during the period, especially on the monetary front.

Do not immediately say game over when you find yourself short for your renovations. Check out other alternatives to save up! If you leave everything half done and half-baked, you may not be able to feel truly at home in your renovated house.

How To Choose A Singapore Moneylender?

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If you are in need of money while residing in Singapore, you would need to request a personal loan from a reputable moneylender. The moneylender must be able to give you a variety of options which would cater to the customer’s needs. However, how can you choose a moneylender in Singapore which would give honest rates and easy payment rates? Should you consider their licenses alone? Their policies?

For first-time personal loan applications, here are some questions you need to ask yourself when you are choosing a moneylender in Singapore:

Are they accredited?

Singapore has very strict policies when it comes to moneylenders to protect Singaporean and foreign borrowers. In order to see if your prospect moneylender is licensed to operate in the country, you can check the list on the official website of the Ministry of Law.

If you are visiting one of their branches, check if they have a valid license from the Register of Moneylender Singapore as it is a proof they are allowed to operate and provide loans.

If you wish to find out more about moneylenders, you can check out social media to see testimonials from past and present customers of these moneylenders regarding their services.

How easy is the application process?

Applying for a personal loan is not as simple as it sounds because you may need to make a personal appearance, file numerous documents, and even undergo various interviews and investigations before you are approved.

Nowadays, moneylenders in Singapore now have websites that would make applications faster and more efficient. You can now also apply for various loans online, like car loans and house loans.

Applicants would only need to upload their proof of identity; employment data and others online then wait for the results. Once the application is submitted through, it may take only a few hours before the application is decided.

If you have bad credit, you may find it difficult to locate a good lender to approve your application. However, there are licensed money lending companies in Singapore that also check those with bad credits and offer means to help them bolster their ratings.

Some lenders may ask for more information and may also put their various criteria on their websites for applications, so compare their application process before you apply!

Are the transactions safe?

Like anything we do online, it is important to check whether the transaction is secure. Check if there is proper encryption used in the moneylender’s website and comes with its own firewall and online monitoring. There must also be other security features on the website throughout the application or transaction process to ensure your data is safe.

What are the interest rates?

When applying for personal loans, it is important that the interest rate offered by the lender is small and would match your budget. Take time to compare all the interest rates offered by moneylenders before you pick one that would work well for you. Make sure you also check out if there are hidden clauses on repayment and their interest rates.

Personal loans should always have low-interest rates and manageable to pay. Of course, even though some may offer very low rates that sounds like a dream, they may not be trustworthy so question it before you apply.

Under Singapore law, every moneylender is required to publish their effective rate of interest (EIR), or the cost you are actually borrowing for one year. Usually, secured personal loans for those with annual income under $30,000 have an EIR of 13% while unsecured loans have a 20% EIR.

If you have a higher annual income, there is no specific limit to one’s EIR so it can be negotiated between the borrower and the lender on how much it is going to be.

What extra rates do these moneylenders charge?

Under Singapore law, moneylenders can charge extra fees for:

  • When there are contract changes with the customer
  • When there is a default on principal repayments or interest payments
  • When checks have bounced or unaccepted.
  • When a GIRO deduction from the borrower’s bank failed.
  • When borrower made an early repayment or closed the loan terms.
  • When there are legal fees included when collecting loans.

What is their loan repayment schedules?

Before you send your application, check into your preferred loan repayment amount then see if the moneylender can offer a good repayment scheme that would match it. If the repayment scheme offered by the lender is not suited to your needs, you may have problems paying your monthly dues with them.

Try asking your prospective moneylender if they would be open to adjusting their loan repayment terms to match your capacity or have one available. If you find yourself in a bind because of the repayment scheme, the company may not be able to give you leeway on how to sort out the loan.

Pick a moneylender that would take time to listen to your questions and assist you in creating a loan package that works just for you.

Is their customer service top notch?

Of course, you cannot just depend on the site’s credibility and their license when picking a moneylender that you can trust with your personal loan application.

  1. Does the moneylending company guide you through the loan process?
  2. Do they have an online or offline hotline where you can inquire and ask for the loans?
  3. Are they friendly when they talk to you about your loan?
  4. Are they easily accessible?

Check online reviews and testimonials in social media to see if the moneylender’s customer service is very good or should be avoided.

Conclusion

Picking a credible moneylender should not be done haphazardly because you may end up paying more than what you actually borrowed. If you picked an unlicensed moneylender, there is a possibility you may be scammed and be put to more problems.

Before you select a moneylender for your personal loan applications, research and compare their rates with other companies.

Always consider your financial capacity and budget before you push for a personal loan because it would be quite difficult to manage when you fail a payment.

Should You Get A Personal Loan For Your Business

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As you try to raise funds to help boost your start-up project. Or when you are seeking a short-term bridging loan. It could be for paying off a business bill. You might find yourself requiring additional funding more than several times.

The challenge, however, would be finding the right moneylender. One that is ready to offer you small business loans. Or even finding an investor willing to support you. Particularly when your company is short of funds or are starting out.

Even then, some Singaporeans have been going for personal loans. This they use to fund their startup businesses. You might be wondering whether this is actually a good way to fund your business.

Here, is a look at the pros and cons to consider. This is before going ahead and getting the personal loan.

The Advantage Of Getting Personal Loans For Your Business

Personal loans have several distinct aspects. This aspect will be useful for budding entrepreneurs. To start with, this loan is easier to get than the small business loans. On many occasions, the bank requires an objective business plan. Also, they need financial statements ahead of offering you the SME loan.

The issue is that you will not have any of these to persuade the bank. More so since you are a startup. and just beginning your journey. But, moneylenders normally only need your personal details. This will help lenders be able to offer you the personal loan.

Easy access makes personal loans more beneficial. Especially for Singaporeans who are only starting out. This is when compared to accessing an investment or SME loans. Even if it is from angel investors. More so when you need a small loan amount. That you intend to repay bit by bit over some time. This you could be needing to help you fully establish your business idea.

A second benefit is that the personal loans are available readily. Soon after you apply, many moneylenders will give you the approval. This will also mean that the loan funds are availed under 24 hours. As regards the banking institutions they might take about two weeks. For them to process the loan application.

As far as operating a small company is concerned. Speed is of the essence. More so when you have to manage your bills. At the same time, you still have to get your receivables. Failing to settle your bills punctually.

Simply because you do not have ready cash at hand. It can cause a devastating impact on your business. This is regardless of whether you know that a client will be paying. Even if it will be in the near future.

Downfalls Of Using a Personal Loan For Your Enterprise

Although personal loans will help your company in important ways. It has some downfalls as well. To start with, personal loans mostly attract higher interests. This is when compared to many other funding options open to business owners. More so those offered by commercial banks.

Even then, with some research. Several of the ideal personal loans are a lot cheaper. When they are compared to most offered online. That is through the SME loaning platforms accessible in Singapore. These platforms often charge annual interests of between 12-16%.

Still, this may not be the biggest downfall of using personal loans for your business. Rather, the biggest downside you need to consider. It is that as a borrower you are personally accountable for the loan.

Meaning that by defaulting on the personal loan. You will be hurting your personal score. At the same time, you will create other troubles in your life. On the other hand, small business loans will only be provided to your company.

Therefore, defaulting on this loan will only bankrupt your business. At the same time, it is protecting your assets. Thus they will not be taken over by the money lender.

Another possible problem for a borrower would be. Personal loans normally have a maximum limit of borrowing at S$200,000. The SME loans, on the other hand, could go up to S$500,000.

Alternatives to personal loans and SME loans

The use of personal loans to fund your business may be a good thing. Especially for business owners with a good credit score. At the same time, they do not need lots of money. Yet, as someone who is not able to repay the loan comfortably. That is when things do not pun out well. This is considering the risk of straining yourself with the loan. It can possibly affect your own life and get overwhelmingly huge.

When you cannot find investors or banks. That is ready to offer you an investment or a small loan for your business. There still are other options to source for funding.

To start with, there are numerous crowdfunding platforms. These include FundedHere, Funding Societies, GoGetFunding, and Kickstarter. These platforms will offer you with many different types of capital. This includes products like equity investments, pre-purchases, loans and even donations. This you can get rather fast.

Of importance, is that you take time to research. Make sure that you search and look at a number of different choices. In so doing you will be able to find the best form of financing. This will also be considering the costs, terms, and structure.

These should all be suitable and convenient for you. This way you will be better placed to continue growing your company.

Conclusion

As you look for ways to raise funds to grow your start-up company. Also when you are looking for short-term bridging loans. It could be for the purpose of settling business bills. It may even mean that you eventually will be needing extra funding. That is more than several times. Even then, it may be hard finding the right moneylender. A lender that is willing to offer you small business loans.

In such situations, many Singaporeans end up taking out personal loans. They often use the funds to improve their startup businesses. Even then be sure to look at the positives and downfalls of personal loans. This will help you find the best loan option for your business.

How To Deal With Loan Sharks

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When it comes to loan sharks. The best advice is ‘do not transact with them’. These are unlicensed lenders who offer very high interests. Mostly they turn to threats and pressure to frighten borrowers who cannot repay their personal loan. These lenders are not licensed thus they transact illegally.

Here are several tips on how to deal with loan sharks.

Seek Financial Advisers’ help

It is advisable that you consult a legal financial adviser for lending concerns. In doing so, you avoid dealing with a loan shark. You will also know better ways of borrowing money. Always remember that taking loans is not bad. Provided that you know where to get personal loans. Also, know how to manage the loan money.

Confirm The Legitimacy Of The Lender

It is recommended that you confirm the lender’s legitimacy. Recognize that many loan sharks present themselves as licensed lenders. But with an extensive investigation, they turn out to be illegal. Always ensure that you identify if the lender is certified. They should also have lending licensed issued by the government. When these are lacking. This raises a red flag thus it is best you stop all other transactions.

However, when you already have taken a personal loan. Then you find out when it is too late that your lender is illegal. You could still leave this situation unharmed.

Stay Calm

The first thing to do is to remain calm. Avoid showing the loan shark that you know of their efforts of victimizing you. You could risk getting yourself into more problems.

Report Illegal Lenders To Proper Authorities

The dealings of loan sharks go against the Singaporean law. Therefore the next logical move is to report them to the relevant authorities. Let them know who the illegal lender is, and ways that they operate. If you hold records of the past transactions made with a loan shark. It will help with the investigation process. Ensure that the authorities know everything you know about the loan shark.

Report Any Continued Pressure And Threats

It is probable that the loan sharks will resort to pressures and threats. Even then, do not yield to the threats. Instead immediately report them to the proper authorities. This will further help your case. This is because any continued threats may be used against them as evidence.

Stop Making Further Payments

Immediately after reporting your situation to the right authorities. It is safe for you to stop making further payments for the debt. Since loan sharks are transacting illegally. It implies that they have no right to receive payments or lend money to debtors. Ensure that you know the law and your rights as a borrower. Then use this against them.

Benefits Of Dealing With Licensed Moneylenders

  1. The approval of your application is fast.

Each time you transact with licensed moneylenders. You will be required to fill in and submit your online application form. You will also have to submit the basic documents. This will allow the lender carry out checks. This will include your income level, the employment status.

They will probably check for existing loans and credit card debts with other lenders. These will affect the chances of your loan being approved. However, without extensive checks on your credit score. In submitting all the required documents upon application. It will help facilitate the loan approval loan much faster.

  1. You get the loan amount you require with minimal paperwork

When you are dealing with licensed moneylenders. You do not have to worry about whether you meet the requirements or not. The wait is normally not that long. Usually, it will take several few days. This is from the day you submit your application.

Until the time you get feedback from your lender. From there, you will only need to sign the agreement. Of course, after you have read and understood it. This will help you get the personal loan money.

These steps are convenient and fast steps that you have to do. As you are applying for loans from licensed lenders in Singapore.

  1. There is a physical office that you can go to

When a lender has an actual office that you can visit. Especially when you have some concerns about your loan. This gives borrowers a comforting feeling. The licensed moneylenders also have registered landline. This you could also use to contact them. This also will also help you know that the lender you are dealing with is legitimate.

You should look for the presence of a registered landline and an office. These are some of the things that you need to look for. Each time you are looking for a legal lender in Singapore.

  1. You know of the maximum loan amount, interest rates, and payment schedule

Every time you consult authorized money lenders in Singapore. You do not have to guess the amount you can access. Or wonder about the interest placed on the principal amount. The legal lender will notify you of these details in advance. They will let you know the loan amount you can access. This is based on your yearly income.

With this information, you are able to plan for the loan repayment. This way you will not face unpleasant surprises. More so during the time for settling the debts comes. This allows for you to even prepare a working budget. Thus making the loan repayments convenient for you.

  1. The loan contract contains all the details about the loan

Each time as you take out a loan. Ensure that you get a written loan agreement. This agreement is a document that you can retain. Just in case your lender asks you to give some amount which is not included in the agreement. It is advisable that you make sure that you review the loan details.

Also, take time to read the contract before signing it. This is because once you sign, it means that you accept. You need to only sing a loan contract when you are satisfied with all items indicated. Therefore, you need to know what is in it before blindly sign it.

How Much Is Considered Too Much In Your Emergency Fund?

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Most financial experts may have various views concerning financial matters. But, they will agree that saving up some cash for emergency needs. That it is an essential factor for healthy financial planning.

Many Singaporeans may get worried about not saving enough in the emergency funds. Different people may have various ideas regarding the amount. That is what would be considered to be enough to put away in emergency savings. It happens that what you may regard to be enough will not be sufficient to another.

This is each person has different financial plans and living standards. Some Singaporeans even wonder if it is a good idea to save a large amount. All towards the emergency savings since they might use for other ”better” things.

What Experts Advise

Many experts advise that you need to put aside some money. The amount needs to total 3-6 months of the monthly expenses. Yet, other experts advise you to save some dollars to help you get started.

From there on you can save about a year worth of your yearly income. You need to also look at other factors like how big your family is. Also, consider your living premises; whether rented or your own home. Look also at the car maintenance costs as well as your job security.

What Is Considered As Enough Or Too Much

There are different suggestions as to how much savings is enough or too much.The following tips will help you decide on the amount. This way you will know what amount is enough or is more than enough for your emergency savings:

The Emergency Savings is like Insurance Cover

The emergency savings are like an insurance. These help secure you in times of emergencies. Therefore, use the savings only if you have a crisis. The same way an insurance policy like the car insurance cover.

Just like an insurance, you only have to put away just enough. It needs to be sufficient to cover you in times of emergencies. This also avoids having your cash staying in the account earning nearly nothing. When you consider that a 3 months savings are adequate. Thus you do not need to save any more than that amount.

Disadvantages Of Over-Funding The Emergency Fund

Inability to Cover Other Financial Commitments

When you keep a lot of funds into the emergency savings. You will realize that you are not able to cover other important financial obligations. This can include settling your debts, saving for the children’s education. Additionally, it could be retirement saving and put down payment for your home.

The money can be a lot useful in doing these things rather than over-fund the emergency fund. Thus you do not need to put away more than is necessary. More so when you have more pressing debts to clear such as high-interest credit card. It is not advisable to purchase your necessities on credit. Yet you have savings in your account earning almost nothing in return.

Your Money Loses Value

Your emergency funds need to easy to access. Meaning you may only save with a moneylender institution where you can access it easily when in an emergency. It is an emergency saving and it should be accessible at any time and place.

Even then, It is advisable to pick a moneylender who will provide you higher interests on the savings. Interests on the emergency savings might not be above 1% per year. That means the interests on the savings is below the inflation rate. This will lead to you losing money to inflation.

When the average rate of inflation is higher than bank’s rates. Thus you will be losing money through your savings. This is because the worth of your savings is decreasing with time. Thus by saving up more saved on the emergency fund. Then you will end up losing more to inflation.

Consider other Options other than Overfunding your Emergency Savings

Reserving some money for emergencies will keep you from borrowing. That is from friends and relatives. It will also ensure that you do not get into debts. This could be by using credit facilities such as credit cards. Above all, it helps that you do not use some of your retirement savings.

Some retirement accounts can allow you to withdraw funds. This is often for settling medical bills with no penalty being charged. From this, you may also receive allowances for purchasing your first home. It is important that you keep in mind that money withdrawn does not earn interest. Even then, it may be better rather than get into high-interest debts in case of an emergency. This you may need to consider if you want to overfund the emergency account.

Realize that when you are no longer employed. By being unemployed reduces the benefit of the amount you may withdraw from the savings. That is provided you still are eligible.

Use The Emergency Savings to Help your Financial Plans

You might think that the bigger your emergency fund may be, the better for you. But, you need to realize that bigger savings on your emergency fund will likely be hurting your gains. You could consider the investment opportunities you may be missing as you save in the bank.

Even though different people may have different opinions and views. When it comes to the amount you need to save for an emergency fund. You may use the above tips to help determine the amount you need to have in the emergency fund. It will help not to overfund the emergency savings. Yet in the process miss out on good opportunities. The tips will help you ensure to achieve your financial plans without any strain.

This is important that you ensure that the emergency fund work. This is along your whole financial plan and never against it. A financial plan helps you cover your financial commitments on time. This can also help you invest wisely. This could be on high-return investments as you put aside small amounts for to your emergencies.

Tips & Tricks For Managing Your Student Loan Debt

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Students loans are often times the worst thing to put off for later. Though they may seem rather harmless, however, realize that it is not always so. The student loans are possibly among the most financially destructive things. This is especially so to what a student can face in life. Even so, most students are not aware of the effects of these loans. It can happen that they are rather misinformed about the financial options available.

When not managed well, student loans might quickly accumulate in interests. Therefore, being proactive can be critical to effective loan management. Most students in Singapore have made use of several student loans. This has resulted in huge loan payments which might be overwhelming. By being aware of the risks involved in taking loans. It will help you lessen early exposure to unmanageable repayment agreements.

Even then, realize that excessive loans will negatively affect your credit ratings. They could increase rates of interest thus resulting in higher total costs. Meaning the ownership of important items like a home and a car purchase is higher. In helping you manage the repayment of your student debt.

Here are some tips advisable for current students, new graduates. This can also be useful to those struggling with repayment of their student loan.

Start Payments Immediately

When you can, you could consider making the payments immediately. Instead of waiting for the grace period to elapse. If you have a job, you could make some payment towards the student loan. In so doing, you will pay less in interest when you start making repayments immediately. Before you know it will become a routine.

When you are disciplined straight up. You soon will be way ahead of everyone else.also ensure you read through the agreement. This way you will also get to know the repayment plan. In reading through your school loans you will know the amount you owe. You also need to know the due dates of your payments, and the amount of the minimum payment. This will help you plan the amount to pay every month before signing it.

Know Your Options

There are many different loan types available in Singapore. Federally guaranteed loans normally allow for income-based, extended, or graduated payments. Also, each has its benefits.

Extended repayment let you stretch out your repayment to 25 years. The graduated repayments start out using low monthly payments. This then increases about every 2 years. This is a good option when you anticipate your income to increase too. The income-based payments depend on the combination of income, household size, and your personal loan balance. This can be good when your income is stable.

Certainly, any kind of plan that does not repay the loan fast is to be reconsidered. Then it can only result in bigger interests paid over during the personal loan tenure. Although taking more time to pay back a loan is not the best option. It is good to realize that any choice is better than defaulting on the set loan schedule. Not to mention missing payments. This might cause long-term damage to your finances which could actually have been prevented.

Consider Student Loan Consolidation

When you have not defaulted on the student loans. You could request your moneylender for a delay, or even deferment. This will mean that you will get exempted from a number of payments. Though the interests will accrue over this time. To be able to get this there are several qualifying conditions. This may include personal or medical problems. It can also be other reasons that you could document. This needs to prove the effect it will have on the ability to meet payments as set.

At times you might even qualify when you have already defaulted. However, in all cases, it is advisable to learn about the options available. This is before you require them. By knowing that you can move several personal loan repayments to later will make a major difference. Especially when you are planning for unforeseen financial emergencies. It could also be the inability to pay as agreed.

Have A Working Budget

It is important for you to know where your money is going to. Therefore, set a budget and you could ask for assistance to come up with one. This will help you look for areas that you can make savings. This will help you come up with extra cash which can be used for repayments.

To help with budgeting you use templates in Quickbooks and Excel. There are apps such as Mint, LearnVest, or Toshl can be useful for budget-setting.

Consolidate Loans When Possible, And Get Help If You Need It

In Singapore, there are some graduates who have many loans from different moneylenders. This might pose problems when the entire payments are unmanageable. When this happens, you could use the available programs for consolidating the student loan. Just confirm whether your student loan type qualifies for the for the consolidation programs. Even then, it is advisable that you talk to a moneylender.

Explain the situation, and certainly a solution for your specific need will be worked out. The one advantage of loan consolidation is lower payments. However, it can even offer a reduced or a set interest rate. Under some circumstances, it might offer you discounts for planning automatic payments.

Although some people will argue that thinking about these options. It could be preparing for failure. However, they are not considering the reality that life will not always work as planned. Getting prepared ahead of time will take less effort as compared to trying to repair problems in time of crisis. This could be the difference between getting overcome by the problem. Or you managing the problem.

Under all circumstance, ensure you are aware of the repayment options. Learn about these options even before deciding to make use of them. Above all look for ways to manage well, your student loans. This is before they become overwhelming.

How Do You Convince Your Moneylender

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When you would like to borrow money, from a lender. You may need to persuade the lending institution to provide you with the personal loan. Loans may not always be easy to access. Especially, for a borrower who has a low credit score and other past issues.

Even so, taking time to carry out some research will help you find a lender. This lender will be ready to help you find a solution based on your situation. Actually, many moneylenders are willing to offer you the funds you need.

When you are in urgent need of funding. You could be considering borrowing money from moneylenders. Realize that the moneylenders have a business and a reputation to attend to. Therefore, they may not get fooled easily in using lies and made up stories.

Below are tips to help you persuade a lender to offer you the personal loan.

Clean Up Your Credit Rating

If you would like to take out a loan from licensed moneylenders. Often times you will, you will notice that they require that you have a steady job. It may be difficult to get low rates. Especially when you are not making your other payments.

Consider this, when you visit a bank or call them. The employees may express their concerns when you hold a low credit score. Owing to this, when seeking to take out a loan. You may have to grow your credit score. By repaying existing loans and handling any issues their report. A borrower is able to lower their interest rate as well as save a lot.

Tell Your Story

As you are talking with your moneylenders, you will need to persuade them. So as to actually prove that you genuinely need the funds you want to borrow. Thus it is advisable that you tell your story, however, ensure not to make it into a drama show. Moneylenders also have stories to share but choose not to. Although sharing your current situation is necessary. Making it to a sob-story to make your moneylender pity you. It may not be the best way to go.

When most money lenders are asked whether the stories moved them. Nearly all answered with a simple: “No.” Most think that these stories were rather exaggerated. Especially when borrowers and families start to cry.

Therefore, make things brief, share your story. However, do not make it dramatic and intense. It is all about proving that you truly need financial assistance. Thus avoid the emotional manipulation. There are many aspects that will be considered for you to qualify for the loan you need.

Provide Payslips

It is important as you are seeking personal loans. You may have to confirm that you make a decent salary. At times, when you are not employed, you could manage to bring in cash from other sources.

Regardless, when it comes to high-risk loan providers. It is advisable that you are able to show your income. In so doing, you will be able to quicken the process. However, you might get to enjoy better interests. When you demonstrate that you make a reliable salary and are responsible. The lender will certainly look for a way to help you meet your financial needs. You could prove your salaried status by providing your recent past three months payslips.

Down Payment

When you are looking for personal loans to meet your financial obligations. You may need to think of down payment. When you offer some down payment on your loan. You will be able to reduce your monthly instalments. This will also show your lender that you are serious about repaying your loan. Fortunately, most high-risk loan providers are ready to help. They have no problem offering money to borrowers who put in some down payment.

Be Open

Normally moneylenders ask a number of questions prior to approving the application. They use this as a way to tell apart the different types of borrowers. That is those who make up stories to gain favour from the moneylender yet there are the genuine borrowers.

Therefore, during an interview, be open and tell the truth. That is regardless of how unconvincing and silly it will sound. Realize that coming up with stories only leads the moneylender to not approve the request. For this reason, avoid making up stories. In this situation, this can work against you.

The moneylenders are experienced in asking questions that can expose you. More so when you are lying. They use questions that have been devised to may seem as though you are responding to different questions. Yet in reality, you are just going in circles until you provide contradicting answers. This is how the lender will find out whether you were lying to start with.

Spread The Word

When you have found a good moneylender, you can do them good too. You could refer them to anyone you know and your friends too. Such moneylenders are putting in efforts to help borrowers access funds that they required. The least a borrower who has benefited from these can do is spreading the word. This will make more clients go to them. This can help them in their business. In turn, it will help you receive an approval easier next time you need to take out a loan.

Additionally, as your moneylender is kind to you, it is only right that you also do the same. Even when you are annoyed with the questions. Keep in mind that they only are doing their job. Not being kind and scolding them might result in you getting banned with the moneylenders. This could also be to all the other moneylenders who are acquainted with the particular lender.

As you are seeking loans, you might have a hard time convincing some lenders to offer you money. Although true, when you are seeking moneylenders to lend you some money. You will eventually find the right deal.

Additionally, you may walk away satisfied with the sum you have saved. Fortunately, by following these tips, it will help you convince your potential lender to offer you a loan.