Loans

A Brief Guide to Money Lenders and Their Types

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There are always those people, who are in need of money, and mostly this need is urgent, and to raise the desired amount easily was a herculean task earlier, but now raising money has become easy, provided one should have some valuable asset which can be mortgaged. These lenders can be individuals or financial institutions or even businesses. According to a Money Lender Singapore, Lending can be defined as the process of giving someone a certain amount of money in exchange for an asset which can be a property and gold etc. with the guarantee of the money being returned with the interest amount as per the decided rate.

Who is a lender?

Lenders can be businesses, financial institutions, and even individuals, and they lend the money and expect that the money will be paid back and interest is what the lender gets back added with the amount he lent out. And the rule of lending regarding the rate is that whence there is more risk that the money might be lost, there is going to be higher interest rates.Therefore, lending to new businesses or start-ups is risky, and thus companies charge higher rates for them and mostly they do not lend to small businesses.

Often lenders are confused for shareholders, lenders are different from them in the way that the lenders have no say in the business unlike shareholders, and whence the business goes bankrupt the lender is supposed to get the money back unlike shareholders who swim together and sink together.

Types of commercial lending

There are several types of professional lending and to name the most common ones would be

  • Bank finance for small business start-ups and working capital.
  • Asset financing for equipment and machinery or business vehicles.
  • Mortgages
  • Credit card financing
  • Vendor financing which is through trade credit.
  • Personal loans
  • Home loans

Most Appropriate Lender for Business

There are certain factors on the basis of which one can find the most appropriate type of lender as marked out by a Money Lender Singapore these factors include theamount of loan, the number of zeros play a role in choosing the right lender, if the amount desired is huge one will need a combination of types of commercial loans

Assets pledged, one can pledge its business assets as collateral for the loan, thus one can get better terms if the loan is unsecured.

Types of assets, this is also a vital factor and most common one. A mortgage is typically for land and building and equipment loan is for financing capital expenditures like equipment.

Thus if ever in need for financial resources there is nothing to be worried about, there are a number of institutions that will help one in raising money for their purposes irrespective of being personal or professional

Find the official website here to investigate more

Name: Accredit Licensed Money Lender Tampines | Personal Loan Singapore

Address: 503 Tampines Central 1, #01-315, Singapore 520503

Phone: 6226 2662

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