So very often, retail store owners need a renovation for their spaces, but the problem is, renovations are an expensive affair; and without sufficient spare cash, it becomes difficult to make the upfront deposits that contractors want.
The solution? Get a renovation loan! In this article, we will explore the the best avenues to obtain a commercial renovation loan.
What Makes a Renovation Loan?
Renovation loans are needed for a variety of reasons:
- A face-lift in the outlay and design
- Structural repairs
- Re-modelling of the commercial space
Renovations are usually either paid in progressive payments or upfront in full. Point is, renovations in Singapore require for owners to have sufficient cash on hand. It often feels like a competition between raising sufficient funds, and the interior designer collaborating with the contractor to use up your budget
While there are alternative ways to fund the cost of your renovations, like utilizing your credit cards – though at the cost of 24% APR, the more logical solution would be to simply obtain a reno loan, where the cost of funding averages at an affordable range of 3 – 5% APR.
How to qualify for a commercial Renovation Loan?
Here is a list of guidelines to will help to better your chances:
- Maintain healthy balances in your corporate bank account
- Ensure that your company’s financial statements are properly done up
- Have a minimum declared income of $30,000 annually
- Have a good personal credit rating
Now, when it comes to commercial renovation loans, institutional lenders tend to be a little more stringent with their assessments. Therefore, even in the event of a rejected application, do not lose hope.
Try appealing, and if that fails, find out what went wrong, and try applying again in 3 – 6 months.