How Does Line Of Credit Work In Singapore?

Introduction

Line of credit is a financial service provided by banks and other financial institutions. In Singapore, there are many traditional banks and institutions where you can avail a line of credit for your business.

What Is A Line Of Credit?

Line of credit (LOC) is a financial service where you are approved of a certain amount to lend. In the case of a line of credit, you are approved for a credit line with a maximum credit limit. A credit limit is set for a time period. You can withdraw any amount within that credit limit. You need to repay the amount you withdrew and the interest is charged only on the withdrawn amount.

Line of credit can be of different nature, secured or unsecured depending on the categories of services. Businesses prefer a line of credit for their flexibility. A line of credit can help businesses overcome unexpected and urgent cash flow gaps.

How Does A Line Of Credit Work?

You need to apply for a line of credit through a bank or other lending service providers. Depending on where you are applying, you will need to submit different documents. Line of credits can be both secured and unsecured.

How Does Line Of Credit Work

An unsecured line of credit from the banks are normally approved on the basis of a good relationship between the bank and your business. A secured line of credit asks for the collateral while application procedure.

Generally, there will be an application fee and processing fee for the line of credit services. With technological advancements, some of the institutions have made the application system online, faster, and more efficient. Documents for application will vary with respect to where you are applying.

Once approved, you can use any amount within the credit limits. You can repay that amount with an interest on the amount withdrawn from the credit line. The rest of the amount will be available for you. The amount repaid will be available to use again depending on the nature of the line of credit, revolving or non-revolving.

Finaxar Line of Credit

Finaxar is a financial institution offering its own line of credit services to small and medium enterprises. We offer a line of credit for a fixed tenure with a flexible repayment plan. There is no collateral required and only a single fee is charged on the drawdown amount.

You can avail a credit limit as high as $500,000 and can draw any amount (within the maximum limit), as and when you need. The eligibility criteria for the applications are not stringent either.

What Is The Eligibility Criteria For Finaxar Credit Line Application?

Finaxar accepts applications from companies in Singapore with at least 6 months of revenue generation. We are dedicated to helping businesses of all sizes. Keeping that in mind, we are open to applications from companies that have been successful in the business for at least 6 months.

Your personal credit score doesn’t affect your application for Finaxar credit line. That being said, there are no minimum credit score or minimum monthly income requirements to apply for Finaxar credit line. The application process is completely online, easy and fast.

How To Apply For Finaxar Credit Line?

The online application process takes 5 minutes to complete and gets verified within 30 minutes. You need to sign up on the Finaxar web app with your email address and phone number. In the following steps, you will need to submit your company/business details and link your accounting software to your dashboard.

Your account will be verified by our expert team within 30 minutes and you will be provided with all information on the Finaxar Credit Line. At Finaxar, we believe in complete transparency at each and every step. You will be informed on the amount approved on, facility details including interest and repayment schedule. Upon approval from Finaxar and agreement from you, the funds will be available within 24 hours when you submit a drawdown request. You can access all the information about your transactions with us through Finaxar app.

Repayment

Finaxar makes it easy for you to repay at your own pace. The repayment schedule is fixed according to the agreement between you and Finaxar. For the ease of repayment, we utilize direct debit from your company bank account, upon agreement on the direct debit authorization.

All the details about the installments, schedule and amount are disclosed to you before signing the agreement. Also, you can track all the details through your account dashboard on Finaxar app. Other than the one-time finance fee, Finaxar doesn’t charge you any other fee for the services.

Fee

As said before, Finaxar believes in transparency and values a good relationship with our customers. There is only a single fee charged on the drawdown amount which is disclosed to you before you sign an agreement with us. There are no other hidden charges in the whole process, whatsoever.

How Is Finaxar Credit Line Different?

Finaxar Credit Line is considered a smart way of funding your business for the special benefits offered. Finaxar takes a step further to ease the burden of getting funds with the following solutions:

  • Advancement of funds against future sales
  • Ease of access to your funds
  • Fast application process
  • One-time fee

The traditional line of credit from a bank or financial firms require you to re-apply for the credit line once you have used up the amount approved. At Finaxar, the amount you repay is added back to your credit line and is available for you to use again whenever necessary. 

Your credit line grows with your company growth. Finaxar stands out in this regard and we value quality customer relationships.

How Can You Use LOC To Grow Your SME In Singapore?

Growth of your business depends largely on the working capital and cash flow. An unexpected gap in cash flow can seriously affect the growth of your business. When it comes to SMEs, getting quick funds to clear this gap becomes difficult. Having a line of credit ready for your business keeps you prepared to face such situations.

We have explained what a line of credit is and how Finaxar Credit Line works in one of our previous blog posts. Let’s discuss how you can take advantage of a line of credit for growing your business.

  • Expanding Your Company
  • Fulfilling seasonal demands
  • Coping up with Off Season
  • Building your inventory
  • Investing in Marketing

A financial crisis led by unfortunate incidents is something you cannot predict. However, you can always be ready with an emergency fund for your business needs. Line of credit gives you the security of having funds available anytime you need them.

It is not wise to apply for external financial aid when your business is running low. The facilities like the credit line are meant to help you overcome your cash flow gaps that can stop your business growth. Make sure you apply for these services when your business is doing well.

Endnote

Line of credit is a financial service where you are approved of a certain amount to lend. You can withdraw any amount under the approved credit limit and need to pay interest only on this withdrawn amount.

Finaxar Credit Line is a line of credit service designed for businesses of different sizes. It stands apart from other services for its easy application procedure, flexible repayment schemes, and one-time financial fee.