THIS WEEK'S FOLIO: SME FINANCING

TWO banks - DBS and OCBC - highlight what they take into account when considering a loan application.

The applicant's cashflow, repayment capability, track record, credit history, financial statements and business plan are evaluated.

It is also important for SMEs to demonstrate that they have a viable business plan.

Getting bank financing should not be an issue, as long as companies' business plans clearly demonstrate a sustainable revenue stream and owners can prove that their venture is able to meet debt-servicing schedules.

Key requirements are transparency and sincerity when providing information to facilitate the bank's evaluation.

Ensure these documents are on hand before applying for loans:

• Copy of business profile from the Accounting and Corporate Regulatory Authority of Singapore Bank statements
• Audited accounts or certified financial statements (two years)
  
• Personal income-tax assessments of owners, partners or directors
  
• Business plan
  
• Details of major projects or contracts the company completed
  
• Loan-application form

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