rejected by banks

Michaelwong1 SG

:confused:
I have approached so many Banks for loan but was rejected again and again.
I have even put in my factory unit which is fully paid for as a colleteral to obtain a loan, but yet was rejected, WHY!!
The banks claim they are not comfortable with my annual income declaration.
But my factory unit is valued at at least S$300,000.and have 46years more left.and is fully paid off by cash.I only need a loan of S$100,000.why worried about my income, when i have paid off property to pledge! I only need cash flow to continue to run my business.
And Singapore Banks have been losing mllions and billions of dollars to big organizations & etc.. why they can't just help small business people like us with 100% colleteral.Finally,anybody can help me beside the banks??

trendz SG

simple. you don't meet the dsr.

just like how some people wanna take mortgage loan LTV 80%, but their records in credit bureau sucks. well, of course it's unsuccessful. Some idiots even hide, don't declare or claim forgotten about various loans they took.

nobody cares abt your fuckin' factory. it's useless as an asset.

trendz SG

they must have also reviewed your OD (if any) and found it unsatisfactory. lol.

Veggie Bao SG

Try other banks.

Michaelwong1 SG

ok, thanks

xtreyier SG

1. The mighty Credit Bureau is a hindrance. Your credit rating is listed and filed and can be accessed by banks. Nothing wrong as its purpose is to protect banks from habitual high risk consumers, but unfortunately, for those who had owed banks or bankrupt, but had already paid back in full, the record remains there for years and maybe even indefinately.

It is a black mark against a person. I once questioned my aquintances in banking circles would they make loans to such persons, and they said no, as it is a sign that they are habitual, poor in financial management and would only do the same again if they lay hands on money. I know not what theory it is based on, nor could they tell me, and I didnt bother much.

Now that you brought it up, I think it is unfair and would only hurt biz and consumers who had turn over a new leaf and paid up their dues, and presently need funds to solve cash flow problems. MAS should look into it, if there are indeed such cases abound, as it will ultimately only hurt our economy's growth if clean consumers are not allowed loans because of mistakes made in the past.

Is your company registered as a PTE LTD or sole proprietor? If SP, then likely they would have checked you and your shareholders' credit ratings.

2. Do your directors and the company have any court cases pending? It may also hurt your loan applications, even if your collateral may be high networth, with thanks to Credit Bureau.

3. Have your company owed any other institutions with other kind of loans? Because if the bank finds out you have many other debts to service, the company may not be able to meet its obligations if another new loan is provided.

4. Perhaps you may want to try Spring Singapore for funds, if you have not done so yet?

http://www.spring.gov.sg/EnterpriseIndustry/FS/Pages/micro-loan-programme.aspx

5. Other than that, if all else fails, guess it may be time to sell off some assets to get some ready cash. A mercz, a camry still fetches some tens of thousand, and can be cheaply replaced by a Chery in the meantime till the cashflow issue is resolved.

Good Luck

Michaelwong1 SG

thanks for your comment.

Arapahoe SG

something else you could also figure out during this time....your fixed asset may not value at 300K...at this moment. so the loan amount maybe substantially reduce.

maxsee SG

Anyway not sure why u are posting here...if u are expecting ppl to lend u $100k here....i think tat is not going to happen......u just have to keep going on to try other banks or perhaps consider reducing the loan amount and ask ur family members and relatives to help chip in..:P

trendz SG

try cimb or maybank.

but then again, it might be a waste of time.

i think upon checking the credit bureau, you must have a really bad credit rating in the records, that's why all the banks refuse to loan the 100k to you.

sell your factory. but though the economy is recovering, buying an asset is still met with trepidation for many. to err on the side of caution.