post

Small business loan mistakes that may hurt your application

Click on Small business loan mistakes that may hurt your application
for the source.
Author: Ravi Philemon

If you avoid common small business loan mistakes you may maximise the success of the business proposal you are presenting to the bank

By: Hitesh Khan/

It is likely that a loan application from a small business, with only a limited amount of security might be viewed with caution by the bank. However, there are steps you can take to maximise the success of the business proposal you are presenting to the bank, and these include:

Among the most common small business loan mistakes is asking for more money than your business require.

Don’t Ask For More than You Need Banks use a variety of formulas to work out how much they think you can afford to borrow. So it makes sense that you do not ask for more than you need to borrow, because the more that you request, the harder it will be to prove to the bank that you can afford to repay. It is also important not to underestimate what you need. If you do underestimate, you may need to go back to the bank to ask for more money.

One of the most common small business loan mistakes entrepreneurs make is to rush their application.

small business loan mistakesEach bank will have different loan approval processes. The first bank officer or loan specialist you talk to may not be the person who makes the final decision on your loan. It depends on the size of the loan you want, the size of the bank and the systems the bank has in place for loan approvals.

You are certainly entitled to ask how long the process might take, but avoid placing any pressure on the bank to respond. This will not hasten the process and may give the bank officer reason to be more cautious. This initial person may have to present your application to a larger group for approval, so you need this person to be
on your side, have all the information they need and a good understanding of what you want to do with the loan.

Common small business loan mistakes which may affect your application process:

  • Thinking that business turnover (cash flow) reflects their actual profits. Banks look at net profits rather than cash flow.
  • Not providing information about the directors of the small business. Banks will assess directors and may ask for guarantees from directors, depending on the individual circumstances of the business.
  • For micro enterprises – thinking that business assets can be used toward security. While this can be considered for some business customers and corporate segments (if used as additional security rather than sole security), it is not acceptable by banks from the micro business segment.
  • Inflating the value of business assets. Bank valuations assess standard market value for a quick sale therefore many small businesses overstate the true market value of their assets

Presenting your business in the best light

A business plan and impressive financials probably will not be enough to secure you a loan. At some point in the process you will have a face-to-face meeting with the bank to discuss the loan application and possibly more than one meeting.

What the bank needs to find out at these meetings is whether or not you fully understand the implications of taking out the loan you are asking for. The bank will be testing to see if you really know your business, and the need for financing, as well as you say you do.

The bank will take into consideration the competitive position of your business within your industry and location, your enthusiasm for the project and your dedication to your business, but in the end, the bank wants to find out just how successful you are likely to be, and how likely it is that they will profit from your business success.

Most importantly, to avoid most common small business loan mistakes, be sensible about the amount you actually need to borrow and be able to justify it. Take your time preparing the application and don’t hurry the bank to make a decision. A well prepared business proposition is a good sign of a borrowers commitment to a prospective lender. Providing any additional information requested by your bank, will assist in the bank making a risk assessment of the business and decide whether to grant the loan.

How to Secure Small Business Loan Quickly

If you are searching for a small business loan, the loan consultants at iCompareLoan can set you up on a path that can get you a it in a quick and seamless manner. Our loan consultants have close links with the best lenders in town and can help you compare various loans and settle for a package that best suits your needs. Find out money saving tips here.

Our Affordability Tools help you make better property buying decisions. iCompareLoan Calculators help you ascertain the fair value of a property and find properties below market value in Singapore.

To find out more about Peer to peer lending versus that of SME loans so as to make an informed decision: SME Loans or Peer-to-peer (P2P) Lending – What is the difference?

Contact us for advice on a new SME loans.

Contact us for home loan or refinancing advice.

The post Small business loan mistakes that may hurt your application appeared first on iCompareLoan Resources.

post

Dementia care village to be piloted by MOH

Click on Dementia care village to be piloted by MOH
for the source.
Author: Ravi Philemon

Dementia care village will provide a safe, home-like environment where residents are assisted to live independently

On behalf of the Ministry of Health (MOH), the Urban Redevelopment Authority (URA) has launched a site at Gibraltar Crescent for sale by public tender, to pilot a new residential care community concept for persons with dementia. The dementia care village is part of ongoing efforts to improve the quality of life of persons with dementia and broaden the care and residential options available to them.

Dementia Care VillagePilot of Dementia Care Village

The dementia care village will be specially designed to provide a safe, home-like environment where residents are assisted to live independently. It will provide tailored services and programmes to create meaningful participation and social interactions among its residents.

Through collaboration with nearby community partners, the village is also expected to provide better access to supporting services and amenities in the wider community for persons with dementia and their families.

As a new residential option catering to individuals with varying stages of dementia, this pilot complements the home-based care and dementia day care services available today. We hope that the pilot will offer insights into market demand for such facilities and the community needs of persons with dementia, which will contribute to the development of suitable dementia care models in the future.

Site Attributes for Dementia Care Village

Located near Sembawang Park, the site comprises a cluster of 10 State bungalows. The site’s location and layout will provide a conducive environment for persons with dementia. The pilot dementia care village could also present opportunities for the successful tenderer and community partners to collaborate on active ageing programmes and provide other eldercare services for residents. The lease will be for 30 years.

Details of Tender for Dementia Care Village

URA said that a Concept & Price Revenue tender will be adopted to evaluate the tenders received for the sale site at Gibraltar Crescent to ensure that the selected concept proposal aligns with the vision of the dementia care village.

Under this system, tenderers are required to submit their concept proposals and tender prices separately. The concept proposals will be first evaluated against a set of criteria specified in the tender. The criteria include an assessment of the suitability of the proposed overall model of care for persons with dementia, as well as the quality of the care programmes and services. Only concept proposals that are shortlisted will proceed to the second stage for evaluation, which will be based on price only. The site will then be awarded to the tenderer with the highest bid price among those with acceptable concept proposals.

The tender for Dementia Care Village will close at 12 noon on 19 November 2019.

A Dementia Care Village in Netherlands, De Hogeweyk, is often lifted up as the gold standard for dementia care. De Hogeweyk is a gated model village which is designed specifically as a pioneering care facility for elderly people with dementia.

The benefit of using all-day reminiscence therapy at Hogewey, compared to traditional nursing homes, is that the residents with dementia are more active and require less medication.  Carers, doctors and nurses work around the clock to provide the 152 residents the necessary 24-hour care.

The Hogewey complex is set out like a village with a town square, supermarket, hairdressing salon, theatre, pub, café-restaurant—as well as the twenty-three houses themselves. In 2018 4 houses were added to The Hogeweyk. Each house reflects a style that is common to, and familiar for, the six or seven people who live in that house.

The doctors, nurses and carers aim to make the experience as real as possible to the residents. Residents shop at the supermarket and assist with preparing and cooking as they would at home. The carers wear normal daytime clothing rather than clinical clothing and fit into a role that the dementia sufferers are likely to be comfortable with; in the working class households the carers are seen to be neighbours or carers, while in the aristocratic/upper class setting, the nurses act akin to servants.

The living styles have different types of music playing, significantly varied interior design, food and methods of table setting. Residents in each house have their own large bedroom and meet with other residents to share the living room, kitchen and dining room. There are no locks on the doors, and residents are free to walk or cycle around the village, including choosing to visit the supermarket or cafe.

The dementia care village in Netherlands employs 250 staff.

How to Secure a Commercial Loan Quickly

Are you planning to purchase a commercial property but unsure of funding? Don’t worry because iCompareLoan mortgage brokers can set you up on a path that can get you a commercial loan in a quick and seamless manner.

Alternatively you can read more about the Best Commercial Loans in Singapore before deciding on your purchase.  Our brokers have close links with the best lenders in town and can help you compare Singapore commercial loans and settle for a package that best suits your commercial purchase needs. Our services are also very personalised and tailored to the unique needs of the buyers.

Whether you are looking for a new commercial loan or to refinance and existing one, our brokers can help you get everything right from calculating mortgage repayments, comparing interest rates, all through to securing the final loan. And the good thing is that all our services are free of charge. So it’s all worth it to secure a loan through us for your next purchase.

If you need advice on a new commercial loan  or Personal Finance advice.

If you want to speak to our trusted Panel of Property agents.

If you need refinancing advice.

The post Dementia care village to be piloted by MOH appeared first on iCompareLoan Resources.

post

Developer survey for June shows housing market has stabilised

Click on Developer survey for June shows housing market has stabilised
for the source.
Author: Ravi Philemon

The Urban Redevelopment Authority’s (URA) developer survey showed that sales jumped 25 per cent Year-on-Year in June with 821 units sold. However on a Month-on-Month basis, sales dipped 13.8 percent.

developer surveyReal estate stakeholders attributed the sales drop in the developer survey to school holidays and a lower number of newer projects launched, with a total of 670 units launched during the month.

For June, total take-up exceeded the number of units launched; a total of 821 units from new launches and existing stock were sold, despite only 670 units launched from four projects.

CBRE commenting on the developer survey for June said, the “the top selling projects were Sky Everton (134 units), Treasure at Tampines (70 units), and Parc Botannia (60 units).”

Mr Desmond Sim, CBRE’s Head of Research for Southeast Asia, said: “Notably, Sky Everton did well with over 51.1% sold in the first month it was launched. This can probably be attributed to its tenure and location. Buyers were also returning to previously launched projects – including Treasure at Tampines (70 units), Parc Botannia (60 units) and The Florence Residences (48 units). While previous strategies involved incentivising the agents, developers are now taking a more direct approach by incentivising buyers. At the same time, it was observed that some buyers took a longer gestation period to decide on their purchase.”

The developer survey showed that including June’s numbers, a total of 4,348 units have been sold year-to-date, out of 5,497 units launched year-to-date in 2019.

CBRE noted that while the June developer survey showed little action in the EC segment, the upcoming Sumang Walk launch – Piermont Grand, will likely be well-received due to pent-up demand and the reputation of the developer.

Mr Sim added: “Despite the measures in place, there seems to be some strength in the market. Should this buying momentum continue, CBRE expects total new sales for this year to come to around 8,000 units, which has been the underlying demand level established over the past six years since TDSR was introduced.”

Ms Tricia Song, Colliers International’s Head of Research for Singapore, commenting on the developer survey for June 2019 said, “the private residential market in Singapore looks to have achieved some semblance of stability a year after fresh cooling measures were imposed in July 2018.”

She added: “Despite June being typically a slower month for property sales – due to the school holidays during this period – developers still sold 821 new private homes (excluding Executive Condos) in the month. June’s sales were 13.8% lower from 952 units sold in May 2019, but developers had launched far more units on the market in May which have helped to push volumes up. On a year-on-year basis, new home sales in June was 25.5% higher than the 654 units sold in June 2018.”

Colliers noted in their observation of the developer survey:

“All in, developers have sold 4,346 new units from January to June 2019 (up 10.1% YOY) and it looks on track to meet Colliers Research’s forecast of 9,000 units sold for the full-year.

The four new projects launched in June contributed to 19.2% of the total developers’ sales last month. One new launch – Sky Everton topped the charts, while the bulk of the developers’ sales in June came from the earlier launches. We believe Sky Everton did particularly well as it is a rare freehold launch near the city centre and near an upcoming train station. The price point also presents value, compared to some 99-year leasehold property launches.
4 new launches in June 2019

Project Name Street Name Locality Total Number of Units in Project Units Launched in the Month Units Sold in the Month Median Price ($psf) in the Month Units sold as % of launched
Lattice One Seraya Crescent OCR  48  48  19  1,779 40%
Seraya Residences Seraya Lane RCR  17  17  1  1,663 6%
Sky Everton Everton Road RCR  262  262  134  2,523 51%
Sloane Residences Balmoral Road CCR  52  52  4  2,985 8%
               

Source: Colliers International, URA

Top 10 Selling Projects in June 2019

Project Name Street Name Locality Units Sold in the Month Median Price ($psf) in the Month % sold to date of total
Sky Everton Everton Road RCR 134  2,523 51%
Treasure At Tampines Tampines Lane OCR 70  1,320 21%
Parc Botannia Fernvale Street OCR 60  1,296 80%
Parc Esta Sims Avenue RCR 58  1,690 44%
The Florence Residences Hougang Avenue 2 OCR 48  1,442 15%
Stirling Residences Stirling Road RCR 33  1,804 57%
The Tre Ver Potong Pasir Avenue 1 RCR 31  1,628 79%
The Woodleigh Residences Bidadari Park Drive RCR 31  1,802 18%
Riverfront Residences Hougang Avenue 7 OCR 30  1,307 71%
Parc Komo Upper Changi Road North OCR 28  1,482 38%

Source: Colliers International, URA

June’s sales were led by new launch Sky Everton which moved 134 units at a median price of SGD2,523 psf. Other private residential projects which did well included: Treasure at Tampines which sold 70 units at a median price of SGD1,320 psf; Parc Botannia which transacted 60 units at a median price of SGD1,296 psf; Parc Esta which shifted 54 units at a median price of SGD1,690 psf; and The Florence Residences where 48 units were sold at a median price of SGD1,442 psf.

Buyers continue to be value-conscious. In fact, some earlier projects such as Treasure at Tampines, Parc Botannia and Parc Esta, representing some of the cheapest launches near MRT or LRT stations, saw monthly sales pick up from May’s 33-50 units to 58-70 units in June.

Taking stock, a year since the cooling measures were announced on 5 July, large projects such as The Stirling Residences (1,259 units), Riverfront Residences (1,472 units), Affinity at Serangoon (1,052 units)  and Park Colonial (805 units), which were launched in June and July 2018, have sold 548 -1,052 units respectively. They appear to be on a cruising mode, moving 18-33 units a month, as sell-through rates sailed past 52-80%.

Outlook Based on Developer Survey

Although the private residential market has stabilised somewhat since the July 2018 measures, we note that there may potentially be some macroeconomic headwinds ahead, with slowing global growth and the weaker economic outlook in Singapore. That said, there are still factors that are supportive of home sales. These include the more favourable interest rate environment and still stable job prospects domestically. For super-luxury projects in the city centre, there appears to be increased interest from foreign buyers, as Singapore remains a safe haven for real estate investments.

We should expect a flurry of new launches in the weeks ahead as developers look to roll out projects before the start of the Hungry Ghost month from 1 August. Potential launches in the months ahead could include: in the CCR, Haus on Handy (188 units), Jervois Prive (45 units), Midtown Bay (219 units); city fringe projects: Avenue South Residence (1,074 units), One Pearl Bank (774 units), Amber Sea (132 units), and suburban projects: Parc Clematis (1,468 units), Midwood (564 units), and Piermont Grand Executive Condominium (820 units).

Given that most buyers remain price sensitive and value-conscious, we expect developers to adopt a prudent pricing strategy.

With the upcoming pipeline of new launches, we think new home sales would likely trend higher in July, before dipping in August. We still expect a full year takeup of 9,000 units (excluding ECs), barring a widespread economic downturn. ”

Secure the Best Home Loan Quickly

Do you want to buy a private residential property but are unsure of securing funds? Don’t worry because iCompareLoan mortgage brokers can set you up on a path that can get you a commercial loan in a quick and seamless manner.

Alternatively you can read more about the Best Home Loans in Singapore before deciding on your next purchase.  Our brokers have close links with the best lenders in town and can help you compare Singapore’s best commercial loans and settle for a loan package that best suits your commercial purchase needs.

Whether you are looking for a new commercial loan or for a refinancing package for your commercial properties, our brokers can help you get everything right from calculating mortgage repayment, comparing interest rates, all through to securing the best commercial loans which fits your profile. And the good thing is that all our services are free of charge. So it is all worth it to secure the best commercial loans through us.

You may contact us today for advice on a new home  or refinancing advice, or for Personal Finance advice.

You may also speak to our Panel of Property agents.

The post Developer survey for June shows housing market has stabilised appeared first on iCompareLoan Resources.

Podcast Ep#31: Should You Buy When Prices Go Lower?

Click on Podcast Ep#31: Should You Buy When Prices Go Lower?
for the source.
https://i1.wp.com/www.propertysoul.com/wp-content/uploads/2016/12/cropped-heading.jpg?fit=32%2C32&ssl=1 Author: Property Soul

With mismatch of supply and demand, many new launch projects are priced to sell. Developers are giving away more discounts. The question is: Should we buy now when prices are lower? Let’s discuss three things in this episode: 1) What are the latest prices and unsold stocks? 2) What things get cheaper even when there… [read more]

The post Podcast Ep#31: Should You Buy When Prices Go Lower? appeared first on Property Soul.

How Do We Develop New Dividend Investing Strategies for Early Retirement?

Click on How Do We Develop New Dividend Investing Strategies for Early Retirement?
for the source.
https://www.drwealth.com/wp-content/uploads/cropped-drwealth-favicon-32×32.jpg Author: Christopher Ng

Finance is an infinitely dynamic field and no investment course can survive the progress of … Read more >>