WHAT IS AN SME LOAN
Definition of SME business loan is an amount of money that is borrowed from commercial banks by in individual that is involved in a small business in order to start, run or expand the operation of the small business further. Chances are quite tight for the financial institutions to lend small business owners money because their businesses are riskier compared to the established ones which made them reluctant to spare some for SME business owner.
Why Do You Need SME Business Loan
Businessmen apply for SME loans when there is an increasing need for them to expand their business such as extending to departments or other incoming opportunities, expanding operations which shows that the company is actually turning in profits with positive cash flows and positive forecast in the future, to support the incoming cash flow that happen because of the late repayment of their customers or delay in the shipment or maybe goods that got stuck in customs.
There is however some businesses that need to apply for loan in order for them to support their daily operation need or for them to increase the working capital for running the company.
Difference between SME and Business Loan
SME loan is not only depending on the funding solely but they must also include infrastructure support, training and mentorship for them to succeed so that they would be able to repay what they have borrowed. The other difference is that the extent of establishment so the compensation normally in lower cost, more flexible for SME. Business loan is normally eligible for established companies because they have approved business models to support and they normally use collateral. You also can find more information about Business loan.
How to Qualify for an SME Loans?
For an individual to qualify for an SME loans, a proven record of an existing business, with strong cash flows 
showing from the bank statements to show how strong the operating cash inflows is highly needed to support your application. All the required metrics should be groom near perfection so they would look as good that they can provide positive influence to the financial institution decision too.
However if you happen to have a string of late payments or repossession, prepare to discuss it with your financial institution and tell them how you would make things to go well in the foreseeable future.
The requirement of SME loan from bank is that for Micro business it should have less than 5 employees while for Small business it should have less than 75 people and finally for Medoum business the employees should not exceeds 200. Then there should be a collateral involve as a guarantee for the lending.
If you are looking for SME Loan, please call +6011-2930 9300
Our Service Providing SME Loan
There are however an increasing need or urgent need for you to get the SME loan quickly then you should try licensed money lender because not only that they will provide you with the loan that you need for running your business but there are many benefits that you may get from these licensed money lenders.
Through them you may obtain easy approval process without going through so much procedures, less documents are needed in order to complete approval process, you get flexible repayment terms and faster disbursement of cash that you may not get if you are applying for loan through other financial institution and the only thing that you will only get here is that you are eligible even if you are blacklisted.
Documents required for business loans
Be prepared because if you intended to apply for SME business loan then you will need these documents in order for you to be eligible for the loan:
- Loan Application Form
- Personal Information
- Business Plan
- Personal Credit Report
- Business Credit Report
- Income Tax Returns
- Financial Statements
- Collateral
- Legal documents
When you need urgent cash, licensed money lenders might be the only option for you at this moment. This is because they might be able to help you especially during this dire situation. You may only need a certain amount of cashflow to overcome the current financial situation, where your business may prosper soon after. Hence for such a small price to pay, if it can help your SME business, we are certainly an option for you.
You might be interesting in other loan services, you can check in Personal loan or Housing loan .