Are you renting an industrial property for commercial use, why not buy it? Does renting sounds easier and lessen burden on your pocket than buying one, but what if we say that you can buy that industrial property on loan and use your money in paying EMIs rather than spending them on the monthly rent? Interested to know more, then stick with us, and we will tell you what financial advisors have to say about industrial property loans in detail.
What to understand from industrial property loan?
If you wish to purchase an industrial or commercial property to run your business or expand its area, in that case, you need to get an industrial property loan. If you are aware of how a residential loan works, sadly, it won’t help you as an industrial property loan differs from a residential loan in many aspects.
- Higher ROI
- Higher fee
- Lesser loan to value ratio
- Shorter loan tenure
However, industrial property loans have many benefits over residential loans if you are investing the money to buy an industrial property. Here’s what financial advisors have to say about some of the most asked queries related to Industrial property loans.
Can I borrow a large amount of money for my business with an industrial property loan?
Business requires improvement at every stage, and to make these improvements, obviously, you need a large sum of money. The lender will evaluate how much amount of money your business is eligible for. So, it could be a better option to consult an advisor first before going to a lender for a loan. Smart-Towkay helps you find a better banking option that suits your requirement for a Commercial Property Loan In Singapore the most by making a transparent comparison of different bank interest rates and other criteria.
Is it better to obtain an unsecured commercial loan?
If you are a small business owner, the chances are that you may have put your residential property on line as collateral in exchange for the loan you received. This means that the lender might step in and collect your residential property as collateral (if you are unable to pay back the loan on time).
Getting an unsecured commercial loan doesn’t put your own property in exchange for the load as collateral, preventing you from any risk of losing your resident.
How to get an industrial property loan quicker?
If you are in a hurry to get a loan, then approaching direct lenders will be a better option as banks take their time to ensure if your business is eligible for the loan and whether you will be able to pay off the amount back to the bank whereas, direct lenders generally emphasize on good credit scores and other small criteria, making the process faster.
What is better among fixed and floating loans?
Fixed loans are different from a floating loan as they have a fixed interest rate (as the name suggests), whereas the interest rate keeps changing monthly with floating loans. Floating loans might offer you heavy save on your pocket every month if you have received a loan for a large sum of money, but for small amounts, it may not be as beneficial. Moreover, if you are flexible with paying more money even when the interest rates increase, then it could be a better option for you. But if you have budgeted your monthly repayment amount, this fluctuation might burn a hole in your pocket.
Getting a loan is never easy, especially when you are not familiar with the banking loan system; that’s why our team of financial advisors at Smart-Towkay is committed to helping SMEs in Singapore to grow their business. With a single platform to compare different banks’ interest rates of Industrial Property Loan Singapore or any other kind of loan you require, and updating you with useful tips and news regarding business financial needs, you can always rely on us.