The risks of a startup is imminent. Raising the initial capital and getting a personal loan are taunting tasks for a first-time entrepreneur, as it is for an existing business owner looking to expand his business. This will be made trickier with mounting global economic uncertainties. (see Straits Times report)
Fret not! Let us at GoBear assist with the tips and benefits of getting a Personal Loan.
Banks commonly charge a processing fees ranging between a flat rate and a percentage of the loan. This can amount to a significant value, which might be put into better use for your business. Be smart and choose the right bank. HSBC Personal Loan plans extend a waiver on said processing fees, saving you petty cash for your business operations.
Fixed interest rates
Unlike floating rate housing loans, personal loan interest rates are fixed year on year. You won’t have to burden yourself with fluctuations in the event of market rate hikes. Assuming a climate of fixed rates and rising inflationary pressure, this condition can play to your advantage as the future value of the loan to be repaid is eroded.
Healthy cash flow
Personal loans should also be aimed to improve your cash flow. It should help you settle your bills and the loan ensures you keep your cash flow constant so you do not run the risk of defaulting on important bills. This keeps your business moving.
Flexible payment terms
This allow you to pay above the required amount for your cash loans, as well as to change the terms of your personal loans, therefore helping you settle your debt faster.
With personal loans, no one gets to dictate how the money is being spent. This allows you to remain true to your business model, bringing it to greater heights.
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