Thursday , 22 June 2017
Why Do Business Owners Turn to A Small Medium Enterprise (SME) Loan Consultant?

Why Do Business Owners Turn to A Small Medium Enterprise (SME) Loan Consultant?

More often than not, small business owners in Singapore turn to a SME loan consultant. In fact, many entrepreneurs and business persons have made the regular consultation part of their business function. A loan consultant is an individual or firm that offers advice, tips and assistance on matters related to accessing finance or funding such as loans or capital. The number of consultants in the region has been rising rather fast especially in the last decade. This is evidenced by the high number of service providers, rising inquiries, upsurge in online searches, and much more.

So, what inspires small medium enterprises to seek services from a SME loan consultant?


  • Locating Good Sources of Capital and The Most Suitable Funding

One of the biggest challenges that majority of SMEs in Singapore face is the lack of sufficient capital. Many businesses owners are aware of the different forms of funding available for small medium enterprise but they are not able to ascertain the most suitable types, sizes, and rates of loan. Finding a loan or capital is one thing and getting the most suitable for your business is another. Unfortunately, many people only realize the difference after accessing the wrong capital. An SME loan consultant can assist a business to identify the best form of capital or financing depending on the need at hand or the stage of a business. This prevents the owner from acquiring inappropriate loans.

  • Better Approval Chances, Less Hassle and Unbiased Advic

With Singapore being the center for business activities in Southeast Asia, there are countless number of banks and financial institutions in this “little red dot”. A business owner can easily get misled into thinking that the loan that they have acquired is the best in current market just because they have a “long relationship” with that particular lender. A SME loan consultant will be able to zoom in to the best loan package your business can possibly get and advise on the loan packages offered by various different lenders that will allow you to save more time and money for the same amount of loan based on their understand of all the different approval criteria.

  • Accessing the Best Interest Rates

Advancement in technologies have made the dissemination of information, understanding SME financing and the process of sourcing for loans easier. However, the biggest challenge is getting the best loan that has minimal charges, is adequate for the business and to understand the reasons in the event of a negative result. Poor judgment may mean a business owner paying high rates of interest, being offered inflexible terms, shorter repayment period and inadequate quantum to turn the loan into good use. A loan consultant who specializes in SME funding can help a loan seeker to source for the appropriate loan according to the seeker’s needs.

  • Gain More Knowledge about the Business

Assisting a small or medium-business to acquire the right amount of loan is the main goal of a SME loan consultant. However, the financial expert also plays a crucial role in advising the business on the best way of operating. The consultant would have dealt with many other firms that similar services and also familiar with success and failures of such businesses. The consultant will also relate performance of the business to the best in the industry. Such information helps a business gain more knowledge about the business.

  • Familiar With the Current Operating Environment

The business environment in Singapore is always changing especially when it comes to sourcing for capital or finance. This is influenced by social, economic, political, and environmental factors.

What was the best form of finance a few years ago may not be the most effective at the moment.

For example, due to the monetary and fiscal policies, the rates of interest on loans may have increased or decreased. The government may also have established initiatives that support SMEs in a bid to boost the economy. A SME loan consultant is more aware of such kind of information and will inform the loan seeker.


Turning to loan consultants has helped many small and medium-size businesses in Singapore grow and remain sustainable despite the competitive market. A business receives good advice on the different kinds of financing, the most-friendly loans, the current operating environment, as well as general advice about the small medium enterprises. Nonetheless, for the best results, a business owner should deal with a SME loan consultant who is experienced and reputable.

Capitalize is a corporate loans specialist firm that helps Small Medium Enterprises (SMEs) and individuals to seek, source and obtain capital from across our established network of up to 30 banks, financial institutions, funding houses and alternative platforms. We are always committed to provide our clients with the most suitable loans according to their needs, from the lowest interest rates possible and at the quantum they require.

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