When it comes to business financing, there are a few different options available to companies in Singapore. One common option is a term loan, which offers a lump sum of cash that must be repaid over a fixed period, usually with an interest rate. Another option worth considering is a revolving credit facility, also known as a ‘revolver’ that can be used repeatedly, up to an approved limit. As your business’s needs change, you can draw on the revolving credit line – and repay it – as needed.
This flexibility is useful when you need to make unexpected purchases or take advantage of opportunities that arise suddenly. For example, you may need to quickly buy inventory due to an increase in customer demand, or take advantage of a time-sensitive real estate opportunity.
If you need financing for a specific purpose and you are confident in your ability to repay the loan, a term loan may be right for you. However, if you need working capital or other flexible financings, you may prefer a revolving credit facility.
If you are deciding between a term loan or a revolving line of credit for your business, don’t hesitate to get in touch with CIMB Bank Singapore to learn more.
