Doing a business in Singapore is quite expensive, thus, Singaporeans have opted the way of borrowings to manage their finances and meeting with all of their business needs. From a year ago, total lending rose approximately by 3% and this rate is likely to be increased in subsequent years. It is very common for small business owners to look for lenders to help them finance a variety of business expenses. However, finding the right lender can be a challenge all on its own.

The question arises, how to find a right small business lender?

Small business owners irrespective of the industry type, often face the difficulty in choosing the right business lender amidst the various small business lenders. You want to be certain that the selected lender is reliable and will be able to help you meet all of your business needs.

Let us help you streamline this selection process with the following 6 tips:

Check out their rating

Analyze the lender and see if they’ve got any awards or appreciation for their services that they boast about. If you find an “A” rating financing firm, then you know that you’re dealing with a reputable firm and anything less than that could be a risky option. You can also consider their existence in the industry to evaluate the experience and the reputation earned along with analyzing their authenticity and if any magazine has recognized them.

Find out how flexible lender is

You may have experienced that banks aren’t the most flexible financial institution. They only entertain a customer with stellar credit, loads of valuable collaterals and a positive financing history. They also usually do not take a risk in supporting a new business idea, not even focus on financing super-expensive equipment. Therefore, either you go and prepare yourself to ask a bank for a loan or find a source like small business lenders that should offer some level of flexibility to make the borrowing process as hassle-free as possible.

Thoroughly check the company’s background

Ask your friends and acquaintances who may have taken small business loans from the lenders to meet their financial needs. Go for online research to analyze the company’s image based on the reviews and comments posted by previous users. Do not just jump on the paperwork but prior to getting the funds, read a few positive reviews. Go for a thorough checkup to define the accurate image of the company in the market and then make a judgment based on your discretion.

Compare lenders

Do not just go for an option that offers less interest rate, even from the standard rates defined by the regulatory authorities. Make sure you have shortlisted a few lenders to make a solid comparison on different aspects. Compare them on the basis of the average interest rate offered, terms and conditions, for how long they are offering loans, etc. Rate every lender on a scale of 1 to 10 as per your suitability and choose the lender with a score of 10 out of 10 in all segments.

Go with a lender that value its customers

This factor is crucial for every company irrespective of its nature and size. The level of customer service offered by companies defines how they deal with customers and their queries. It can also be assessed through a variety of channels of communication (phone, live chat, email) offered by them to provide resolution to the customers’ queries. It is required for the lending companies to have some experienced, knowledgeable and poised employees to answer your every query professionally. As financing is a complex process, thus, you may need to clarify certain points before finalizing the deal.

Identify the type of loans offered by the selected lender

Ideally, the lender you choose to work with should have a decent number of financing programs to offer to its customers. This is because neither two businesses are the same even from the same industry, nor their financial requirements could be. Generally, a small business lender should offer both secured as well as an unsecured business loan to match up the requirements of multiple customer segments. So, it’s up to you and your requirements about which offer you opt to fulfill your needs and head towards the growth and expansion of the business.

It can be a daunting task to go through all the lenders out there before settling with one, therefore, tips have been mentioned above to help you out in choosing the ideal lender to work with.