Why are private lenders so expensive? Are they all out to scam? As a lending startup, we’ve heard it all. And we get it—there’s a stigma surrounding the industry, and the concept of a business loan in general.
That's why we're here to dispel the shady associations, and explain exactly what you can expect when you take up a business loan from Aspire. Before we get to the 4 points, here is a clip to better understand the basic of loan:
Loaning could actually be the best option for your business.
We're proud that we've managed to stay true to our founding belief: small businesses shouldn’t be penalized for their size. Registration for an AspireAccount has some of the lowest barriers to entry in Singapore's lending market, with no minimum operational history or revenue cut-off.
That means your company doesn't have to be at least 2 years old, or reach a certain turnover threshold to be eligible for a loan. Every company is unique, which is why yours deserves to be evaluated on a case-by-case basis.
Even for applicants ineligible for a credit limit, those approved for an AspireAccount can still use the Get Paid feature (more on that later).
When you register for an AspireAccount, you get approved for a credit limit of up to $150,000 for a revolving line of credit. It's free of registration and maintenance fees, which makes it perfect for small business owners to apply, for now, to have ready to use when the need arises.
You can draw down any amount within your limit and will receive your funds within 24 hours (and often much sooner), minus a 2% to 4% processing fee. We offer a 6-month term loan on each withdrawal, with 1% to 3.9% monthly interest. Interest will be calculated based only on what you draw. Unlike most lenders and crowdfunding platforms, Aspire doesn't charge early repayment penalties; in fact, we give discounts on interest if you choose to repay early.
The beauty of a revolving credit line (as opposed to just a one-off loan) is that every repayment steadily restores your credit limit to its original balance. That means you can draw down from your line of credit, over and over again— whenever you need, and for whatever you need it for.
AspireAccount holders are also eligible for Get Paid— our unique service for notified "invoice financing." But instead of having to upload your customer invoices or sell your receivables, we operate on the basis of trust between you and your buyer.
If your customer can't immediately pay you upfront, you can make a Get Paid request to your buyer of up to $150,000 on your AspireAccount. Once your customer registers for their own AspireAccount and accepts your Get Paid request, we disburse the full funds to you within 24 hours, less a 2.9% transaction fee. We also extend 60-day interest-free terms to your customer, after which they will be subject to monthly interest rates of 1% to 3.9%.
Get Paid isn't like other invoice financing facilities. Instead of cashing out only 80% of your invoice value, and holding the remainder hostage against default, you get 97.1% of your total transaction. And instead of holding you liable for your customer's payment, we collect from them on your behalf. In short, it's a solution tailored for small businesses to solve their short-term cash flow needs, all while cultivating valuable customer relationships.
Finally, how quickly can you get your cash— from sign-up to disbursement? The process is designed to accommodate the busy business owner: these steps are quick, simple, and fewer than you might think!
It speeds up the process to have these at the ready:
What's more, if you integrate your Lazada, Shopify, Xero or Quickbooks account when registering for an AspireAccount, you'll be required to upload even fewer documents, and will see your approval timing shortened dramatically.
If you're eligible for a line of credit, you'll automatically receive your credit limit within 24 hours. Otherwise, you'll still be able to use your AspireAccount to Get Paid!
When drawing down from your credit line, you'll get your funds disbursed in less than 24 hours on a working day. Rest assured, you'll get to preview your interest rates and monthly repayment schedule before you commit to a loan!
For Get Paid, the same schedule applies: your funds will be disbursed in less than 24 hours once your customer accepts your Get Paid request.
We might not be able to offer the cheapest rates out there, but it's not because we're trying to exploit your trust in us. We'll be honest: alternative lenders will never be able to compete against big banks on the lowest interest rates because we have to price in higher chances of default.
But while our easy eligibility criteria impose greater risk, we believe it's a risk worth taking. It's why we can provide solutions to promising entrepreneurs deemed ineligible for bank loans, and who wouldn't secure funds otherwise. What we can promise our competitive rates, and a continued commitment to serve the small businesses who need funding the most.
We hope this article has shed light on what borrowing from Aspire entails, and helps clears the reputation of alternative lenders. If you have any other questions, we'll be happy to hear from you! Contact us at +65 96196929 to find out more.
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