Where To Get A Short Term Loan In Singapore

Key Takeaways

The article explores short-term loans in Singapore, detailing types such as payday loans, bridging loans, and invoice financing. Key takeaways include their quick approval process, flexibility, and suitability for emergencies. It also advises using licensed lenders and comparing options for safety and better terms. Popular sources include banks, licensed moneylenders, and informal sources like friends.

You have an emergency and urgently need a short-term loan to resolve the situation before it gets out of hand.

You call your friends and family, but all you get is, “Sorry, I wish I could help,” as they hang up on your calls. You wish you knew a reliable source where you could get a loan hassle-free, but then you’re stuck with many questions.

If you’ve been in this situation, do not fret. In this article, we’ll answer all your loan questions, including where to get a short-term loan in Singapore.

But before we get there, let’s get started with what a short-term loan is.

What Is A Short-Term Loan?

Short-term loans – as the name implies – are loans that you have to pay back within a short period – usually between one to 12 months, with a varied repayment period anchored on the loan amount, rates, and installments.

In Singapore, these loans range from $500 to $35,000 and are usually unsecured, which means you don’t need collateral to get one. They are also approved quickly.

How Can Short-Term Loans Help You?

There are several situations in which a short-term loan might help you. They include:

• Short-term investments
• Paying school fees or rent
• Offsetting long-term loans
• Purchasing raw materials or restocking

These loans can avail the money quickly, fulfill your requirements, and once you have settled everything that was urgent, you can quickly repay them back.

But before deciding to apply for a short-term loan in Singapore, it is important to first understand the various types that are available. Let’s take a look.

Types Of Short Term Loans In Singapore

In Singapore, a few types of short-term loans are available for anyone who needs them. They include:

1. Invoice Financing

Did you know you can take your outstanding invoices and get a loan in exchange?

Well invoice financing, also known as “accounts receivable financing,” is a form of loaning that allows you to get a loan by simply showing invoices due to be credited with payments.

Let’s put this into perspective. What happens with invoice financing is invoice factoring, which involves selling an invoice to the lender, who gives you a loan of up to 80% of the invoices.

After this, the client that owes you money pays the financial institution the percentage they gave you and sends you the remaining balance.

2. Payday Loans

You’re in Singapore and need a lump sum to pay off your bills before they’re due. But when you check your accounts, payday is still many days or weeks away.

Did you know you can approach a financial institution with a post-dated cheque and have them pay you the funds now so that you can pay your bills?

Once the post-dated cheque funds arrive, they’ll deduct the amount and interest from your bank account.

One feature of this type of loan is that the financial institution will deduct the full amount loaned to you and their interest.

Although it sounds like a good idea, ensure you can service it and keep your word to the lender. Otherwise, you may find yourself in more trouble than you anticipated.

3. Line Of Credit

This is a flexible personal loan that works pretty much like a credit card. The line of credit is characterised as an overdraft facility that gives you a predetermined credit limit, which you can use at any time as needed.

Let’s say your line of credit is $10,000. You can withdraw or spend any amount on your bills and enjoy an interest rate equal to the money you spend, provided you don’t exceed your credit limit.

What happens with this kind of loan facility is that you’ll not be charged any interest outside the money you have spent from your line of credit. This is why this type of short-term loan has become a go-to for many people in Singapore.

4. Merchant Cash Advance

As the name suggests, a merchant cash advance is not really a loan but financial assistance that a business or individual secures by simply exchanging future debit/credit card sales with a lender.

In Singapore, if you don’t qualify for a bank loan, you can visit a merchant (lender) near you and borrow a certain amount of money by exchanging that with sales you’re expecting to make in the future and allowing the merchant to have direct access to your credit facility.

To repay, a “holdback amount” is agreed upon between you and the merchant, which requires you to remit a certain amount of money to them daily from your sales until you clear the loan.

While this credit facility or loan is easily available, it is expensive, especially if you’re not certain of meeting your holdback obligation within the stated period of time.

5. Emergency Cash Loan

We live in a world full of uncertainties that require urgent attention.

Some of these uncertainties include medical bills. They all hit us at some point, and we need funds for them.

At this point, approaching a bank may take time due to bottleneck bureaucracy, so what you do is approach a licensed lender for faster cash.

It is worth noting, however, that the interest rates and repayment schedule may differ from bank rates, so be sure to approach them with caution.

6. Bridging Loan

A bridging loan is a common short-term loan facility in Singapore that allows you to obtain a loan to cover mortgages on a house.

Let’s say you’re buying a new home for $100,000, but you don’t have enough cash to pay for it.

However, luckily, you happen to be selling another house at $80,000 that has not sold yet. To get a loan from the bank, you use the house you’re selling as collateral for the loan.

Most people in Singapore find this loan type convenient but often expensive because of the high interest rates and repayment period.

7. Online Or Installment Loans

An online loan allows you to access credit from online platforms.

In Singapore, you can access a loan by literally completing all applications, getting approval, and transactions online. This allows you to access funds at any time of the day and from anywhere with flexible repayment terms.

All the short-term loans in Singapore that we have looked at above are flexible, accessible, and enticing. However, for each type of loan, there is something that you need to know before making a decision.

That’s why, in the next section, we’ll look at the pros and cons of short-term loans to enable you to make a good decision about them.

Pros And Cons Of A Short Term Loan

Pros

• A short repayment period means you pay less interest.
• Sometimes, the lender does not consider the credit score enough to give you a loan.
• Faster processing rate and reduced bureaucracy.
• It is easy to access financial institutions anywhere in Singapore for short-term loans.
• There is a lot of flexibility in the repayment of these loans.

Cons

• Due to the short repayment period, it may be easy to be caught off with servicing the loans if your business fails to perform as expected.
• The interest rate accumulates quite easily if you fail to pay the installments as agreed.
• The mushrooming of digital lenders may lead to an increase in cons and frauds
• Only a limited amount of loans are accessible.

Now that you’ve understood the pros and cons of short-term loans, you’re ready to hit the market to choose a short-term loan for your needs.

But before we discuss where to get these loans, let’s first consider how to select the best short-term loan in Singapore.

How To Choose The Best Short-Term Loans In Singapore

Approach licensed money lenders: Be sure to approach a registered and licensed money lender, as required by the Ministry of Law in Singapore. This is beneficial because of the increased number of fraudsters who might con you with the little resources you’re trying to build. Secondly, they are regulated, so their interest rates are favorable to you as an individual or business.

Loan comparison sites: You can leverage the online sites that can help you compare different money lenders and give you an idea of the expected interest rates and availability of the loans you need.

Ready to apply for a short-term loan? Credit Thirty3 offers fast and reliable loan solutions tailored to your needs. Click here to get started on your loan application today.

Where To Get A Short Term Loan In Singapore

Now that you have a general idea about short-term loans, you might wonder where the best place to apply within Singapore is and be sure they’ll take care of your needs. Some of them include:

Banks

Banks are trustworthy and safe options for anyone considering a loan in Singapore. You must approach them with your loan needs and provide the requirements before they can process the loan for you.

Popular banks in Singapore that offer loans include HSBC, CitiBank, OCBC Bank, and others.

Licensed Money Lenders

These are the best alternatives to banks in Singapore that have been lending people and other businesses loans – especially those that have failed to secure funds from banks.

Their efficiency and dependability within a short notice period for loans, with repayments occurring within 12 months, make them reliable.

Other Sources

Maybe people close to you, such as your family, work colleagues, and friends, might have the muscles to give you a loan.

They’re best because the repayment terms can be renegotiated anytime you seem to be late on your repayment.

However, the drawback is that if you need short-term loans quite often, these people might not be able to provide them.

Acquire Short-Term Loans In Singapore

Short-term loans are adaptable resources that can help you settle past-due bills. Don’t worry if you require funds urgently. Select the right loan type and financial institution for your needs.

In Singapore, Credit Thirty3 is a reliable money-lending institution. Their rates are competitive, and they offer various types of short-term loans.

Contact us now or apply for a loan today.