3 Things You Absolutely Must Know Before You Take Up A Temporary Bridging Loan in Singapore
Eligibility For A Temporary Bridging Loan in Singapore
Here are some basic requirements in order to be eligible for a temporary bridging loan:
- You must have a business entity that is registered and have a physical presence in Singapore
- The shareholders must have a minimum of 30% that is shared between Singaporeans or Permanent Residents (PR)
How Temporary Bridging Loans in Singapore Work
As with most businesses, cash flow is required in order to perform transactions.
Bridging loans can last for as short as 2 weeks, up to 3 years or more, depending on the arrangement required.
These types of loans are meant to cover the lack of cash due to the interval between two major transactions that are of an extremely high transaction value.
Ensuring That Temporary Bridging Loans Are Compliant With The Law
It is not uncommon that most businesses are unable to secure loans with banks.
However, due to limited knowledge, businesses are unaware that there are many unlicensed moneylenders out there that disguise themselves as licensed moneylenders.
For instance, there are many unlicensed moneylenders who misuse our name in order to disguise themselves as a moneylender.
Licensed moneylenders are never allowed to advertise on platforms such as Facebook Advertisements or Google Ads, so if you ever see them, just be aware that they are unlicensed moneylenders.
In other words, loan sharks.
These loan sharks disguise themselves as licensed moneylenders, by using the good name of companies such as 96BM Credit Pte Ltd in order to entice businesses to apply for a temporary bridging loan with them.
They often charge insanely high interest rates and resort to unscrupulous methods such as arson and violence in order to get their money back.
You need to be absolutely sure that the moneylender you are borrowing from is in the list of the licensed moneylenders in Singapore, and that you are meeting up with the moneylender at the listed address in the list.
Frequently Asked Questions About Temporary Bridging Loans in Singapore
The maximum loan quantum is up to $5 million.
It could range from anywhere from 1% -4% per month, depending on the size of the loan.
Typically you need to produce your latest financial statements and also your business must have at least 30% of local shareholdings in Singapore.
The main difference is that a temporary bridging loan is meant to cover the interval between two major transactions as opposed to other loans which are meant for other purposes.