In the years of running your business, there might come a point in time when you consider getting financing. An injection of cash could give your business the boost it needs to level up strategically and grow into your vision. 

It’s safe to say that acquiring a loan can be a pivotal decision that determines the future of your business and hence, needs to be made with careful consideration. So, if you’re thinking of applying for a loan, we’ve compiled four ways to find out if you might be ready for one.

1. Your finances are healthy and you have a good credit score

Staying on top of your finances is a huge part of running a thriving business which includes making sure you have a positive cash flow, your net profits are increasing steadily, and you have sufficient balance in your account. All these point to a healthy financial track record and indicate that your business has reached a certain stability and you might be ready to grow.

Aside from that, having a good credit score shows that you practise good paymaster habits and can be entrusted to make repayments on a timely basis. If you didn’t know, your credit score rating is a number from 300 to 850 that tells banks or lenders what kind of a paymaster you are, based on your credit records. The higher your credit score, the more assured banks are of your ability to repay your loan.

2. You have a solid plan on how to best utilise the loan 

Whether you want to purchase a shop lot, build a factory, or develop your technology, there are many reasons why one might consider a loan. Taking on a loan comes with financial responsibilities so you want to make certain that the funds will be put to good use and are necessary in helping you build your business.

If you have plans for your business, you can run them with your team, conduct mock trials , create prototypes, or perform market research so you have some data to support your idea when you present it to banks or lenders. This way, they can have better insight into your plans and visualise them to see their potential.

Not only do you need an idea to grow your business, but also how you plan to execute it phase by phase, the amount of financing you need to realise it, and details like these to show that you’ve done the groundwork.  

3. You have done a forecast 

Business forecasting is important because it shows the possible progress of your business in terms of profit, expenses, and so forth. By doing so, it assists you in planning your resources, gauging the sales volume for certain products or services, and more. 

You can also create a financial roadmap to show your current state, where your company will be in the next few years, and the expenses required to execute your idea, support your everyday operations, and more.

Your forecasts help to show the banks or lenders that you have the resources to make repayments and that your business is growing financially, they will feel more inclined to offer you a loan.

4. You’re experiencing an overflowing demand 

You’ve started your business small and now as you’re making strides, you’re offered endless exciting opportunities, but may not be able to take them on as you do not have the capacity to do so. If you have been declining good business opportunities due to insufficient resources, this may be a sign that you should consider expanding your business. 

Although growing your business can seem intimidating at first, it is a natural progression in the lifecycle of a business and can be hugely satisfying when done properly. Get extra working capital to engage in mass production, hire a workforce, and more so you can tap into your business’ true potential.

Get RM1,000,000 of financing with UOB BizMoney

As a business owner, you’re always on the lookout for opportunities to get to the next level or put your company at the forefront of the industry. If you’re looking to get a loan to grow your business, you may consider UOB BizMoney, which offers you a high financing amount ranging from RM100,000 to RM1,000,000.

Business owners who have been in operation for a minimum of three years and registered in Malaysia are eligible to apply with no collateral required. In addition, you will also receive complimentary liability protection in the event that you won’t be able to repay your loan due to covered circumstances like disability, illness, and etc. 

• Easy application with no processing fee and simple documentation
• Quick approval in just five working days
• Flexible repayment tenure of 18, 24, 36, 48 and 60 months
• Affordable interest rate starting from 0.42% per month
• Loan amount from RM100,000 to RM1,000,000
• Collateral-free requiring only guarantee from shareholders or directors, with no requirement for property or fixed deposit as security
• Cover your liability with PruLoan Protect

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Getting a business loan could help you realise your goals when used correctly and coupled with good financial judgement. 

Learn more about UOB BizMoney.

• TAGS:
• Financing
• loan
• SME
• UOB
• UOB BizMoney