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Identifying the Best Loan for Your Business

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2 years ago

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Many people have the dream of starting their own business someday in the future. It is the best thing – freedom to pursue your dreams, do something you love, get away from tyrant bosses and insufferable coworkers and best of all turn your intangible idea into a physical success. All these make the work involved in starting and operating your own business worth it.

However, starting a business comes with its unique set of challenges, the extent of which differs according to the type and size of business. Apart from the heavy initial capital investment, cash flow issues may be common in the early life of the business, until the venture breaks even and results in profits. Operating expenses can get out of hand as you dip your feet into the deep end of the entrepreneurship pool and unanticipated circumstances may arise forcing you to reach further into your resource pool.

However, what do you do when you are at the end of that well and bills still need paying? Do you throw in the towel and day that ‘this business thing’ is for those who have money? Certainly not! Most people quit without exploring all the options available, allowing their life’s work to just die and going back to formal employment with their tails between their legs.

This is why Singapore financial institutions, after careful examination of the market, the economy and the needs of various businesses have created a number of Singapore business loan packages for your benefit.

Because of the many types of businesses available, there are very many possible loans packages, which you can take advantage of to tide your business over the hard times. We offer loans according to the size of the business, the amount of income it registers, the use for the funds and other factors. You can also choose between short-term and medium term loans and secured and unsecured loans for your business.

Come to MPM Capital for your business needs and let us help you select a package to help you achieve your goals. Most of the businesses that have come to us in the past were facing such issues as working capital shortfalls, small tragedies, need for expansion among others.

Not only do we provide loans, we also offer financial advice on the best ways to use the amount in order to end up in a better and more profitable position as a business. Our interest rates are very competitive as well. Come to us today, and let us help you make a path for your business to grow to maturity.

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Hi. I am Wassay Ahmed. I am SEO Expert & Blogger. 17 years Old. Wassay s a dreamer, idea generator and teller of stories. I help entrepreneurs become go-to in their industry. And, I like helping the next one in line.

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Business

Top 5 Reasons Why Banks Reject Loan Applications & How You Can Avoid Them When Reapplying

Published

2 weeks ago

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February 17, 2021

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Top 5 Reasons Why Banks Reject Loan Applications & How You Can Avoid Them When Reapplying

Personal loans are a source of emergency funding for many people. But loan seekers must remember that applications for personal loans may get rejected. There are many reasons for loan rejection, and it is good to know them before applying. A personal loan rejection does not necessarily mean that you are not creditworthy. Understand the reason why you were refused credit loans, and you can easily avoid loan rejection when reapplying.

Here are the most common five reasons for loan rejection –

  1. Poor Credit History

Individuals who borrow and repay loans on time have high credit scores based on their history of repayment. If you have never borrowed before or have defaulted on a loan in the past, this will reflect in your credit score and may get you a loan rejection.

  1. Low-Income Level

Lenders analyze your income records to determine whether or not you will be able to afford the monthly installments. If the bank or the lender cannot verify your income with the information you have given or if they think that your income is insufficient – it may lead to a loan rejection.

  1. Debt to Income Ratio

A high debt to income ratio means that you are already spending a large part of your income in paying off your current debts. This is important, as it helps lenders determine whether you can take on another loan payment or not. People with low debt to income ratio are never refused credit loans.

  1. Living in a Location Where Defaults are High

It may surprise you to know that banks and lenders mark geographical locations where defaulters live. If your address reflects a location where many defaulters live, you could face a personal loan rejection.

What Should You Do Before Reapplying?

In case your loan application gets rejected, don’t worry. For refused credit loans, lenders are obligated to send a notice of adverse action informing the applicant about the reasons for denial of the loan. Here are a few simple steps you should take before reapplying.

  1. Take a Look at Your Credit Reports: Obtain your credit reports online for analyzing your credit history and score. Reviewing your credit reports will help you identify the problems such as late payment or defaults that led to your loan rejection.
  2. Evaluate Your Debt-to-Income Ratio: Taking a look at your current debts vis-à-vis your income will help you understand if you have sufficient income to repay the loan you had applied for. Creditors usually look for a debt-to-income ratio lower than 36% for good creditworthiness.
  3. Discuss the Loan Rejection with Your Lender: After analyzing your credit reports the best thing to do is to talk to your lender. They will guide you about the right reason why your loan application was rejected and how long you need to wait before reapplying.

Author Bio:

Shiv Nanda is a financial analyst who currently lives in Bangalore (refusing to acknowledge the name change) and works with MoneyTap, India’s first app-based credit-line. Shiv is a true finance geek, and his friends love that. They always rely on him for advice on their investment choices, budgeting skills, personal financial matters and when they want to get a loan. He has made it his life’s mission to help and educate people on various financial topics, so email him your questions at shiv@moneytap.com.

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