Greystone Advisory

Private Business Loans

Name: Greystone Advisory
Address: 114 Lavender Street CT HUB 2 #02-53, 338729, SG
Telephone: +65 8821 5999
Price range: $$$

At Greystone Advisory, we understand that securing financing is crucial for the growth and success of your business. To help you get the loan you need, we can connect you to established non-bank lenders.

Why Partner with Us to Secure Private Business Loans

Fast approval times
Flexible repayment options suited to your cash flow needs
Access to unsecured business term loans without requiring collateral
Private financing options that cater to small businesses unable to secure traditional bank loans

PRIVATE BUSINESS LOANS

A private business loan (“PBL”) is funded by an alternative lender, as opposed to a traditional bank or financial institution. As such, they are typically less restrictive and get you money faster compared to traditional lenders.

If you need a loan amount that’s competitive but you are unable or unwilling to go through a traditional bank, you can consider applying for business loans from non-bank lenders. These loans have more efficient processing times compared to traditional bank loans and are typically easier to manage. However, it’s worth noting that these private business loans will potentially cost more in the long run.

TYPES OF PRIVATE BUSINESS FINANCING

At Graystone Advisory, we are connected to a network of private lenders that can provide a selection of financing solutions to your business. These are the different types of loans our loan brokers can help you secure:

Business Term Loan (BTL)

Loan Amount: From $20,000/- to $500,000/-
Rates: From 1% per month
Tenure: 6 to 36 months
Approval & Funding Time: Within 5 working days

There are non-bank private lenders that offer BTL as a lump sum with no restrictions on its usage. This loan can be used for various business needs, including inventory purchases, payroll, or even marketing campaigns. But it’s important to note that additional fees, such as loan processing fees, origination fees, and early prepayment fees, may apply.

Secured Business Term Loan (SBTL) (Property-Based)

Loan Amount: From $150,000/- to $30,000,000/-
Rates: From 7.5% per annum
Tenure: Up to 15 years
Approval & Funding Time: With 6 weeks from submission of complete documents

SBTL is ideal for companies seeking higher loan amounts, lower interest rates, longer loan tenures (up to 15 years), and faster loan approval. However, this loan requires the company and/or its directors to pledge their properties (private residential, commercial, and/or industrial) as collateral.

Equipment Loan

This type of financing allows you to purchase equipment that’s essential to running your business. It can include everything from computers to refrigerators to commercial-grade appliances. Interest rates for this private business loan are typically on the lower side because the equipment is used as collateral to secure the loan.

Line of Credit

Unlike a lump-sum loan, a line of credit is a revolving credit line that the borrower draws on to borrow on an as-needed basis—similar to a credit card. Once they make payments, their credit line is also replenished. With this type of business financing, you only need to pay interest on your outstanding balance.

Invoice Factoring

This financing option involves selling unpaid invoices to a factoring company. The business owner receives upfront cash, and the factoring company takes a cut of each invoice as it’s paid. This setup is typically used by business-to-business (B2B) companies.

Merchant Cash Advance

With a merchant cash advance (also known as Revenue-Based -Financing), the business owner trades a portion of future earnings for quick lump-sum funding. The lender is usually repaid by taking a daily or weekly percentage of the business’s debit or credit card sales.

ELIGIBILITY REQUIREMENTS FOR PRIVATE BUSINESS FUNDING

Private business lenders all have their own eligibility requirements. With that said, it’s usually easier to qualify for a private business loan than traditional business financing. Most lenders will typically consider the following:

DOCUMENT REQUIREMENTS FOR PRIVATE BUSINESS FUNDING

Depending on the lender and loan type, the company directors might be required to provide a personal guarantor and/or to put up some form of collateral. Beyond that, here are some of the standard documents required by lenders for their credit assessment:

A brief write-up of the existing business model and future plans, if any.
Audited financial statements for the past 2 years
Management accounts
Latest Debtors' Ageing List
Table of banking facilities (amount, monthly installment and remaining loan balance)
Bank statements for the past 6 months
Guarantor’s Credit Bureau Report
Guarantor’s Income Tax Returns for the past 2 years
CPF Property Withdrawal Statement (for SBTL only)

PROS AND CONS OF PRIVATE BUSINESS LOANS

Private business loans offer business owners a financial cushion, allowing them to address various expenses without dipping into their personal savings. However, like any financial option, private business loans come with both benefits and drawbacks.

Pros

Private business loans are generally easier to obtain when compared to traditional lending options.
Higher loan amounts, lower interest rates, and longer loan tenure with greater ease of approval are highly possible, especially when you apply for SBTL.
Funding is relatively quick (can be as fast as 3 working days from loan acceptance).
The company may still qualify for such loans with less-than-ideal corporate financial standing and/or creditworthiness of the personal guarantors.

Cons

Interest rates tend to be higher than banks.
Some private business loans have short loan tenure – typically not more than 24 months, especially for unsecured business term loans.
Company financial standings, current leveraging positions and credit worthiness of the guarantors might greatly affect the application.
Company directors are likely required to provide a personal guarantee.
Revenue requirements could create a barrier for some borrowers.

HOW TO APPLY FOR PRIVATE BUSINESS LOANS

Applying for a private business loan in Singapore is simple. This step-by-step guide can guide you through the process:

Step 1: Submit Your Application Online or Consult with Our Team

Start by either filling out our online application form or scheduling a consultation with one of our advisors to discuss your financing needs. Our team will help you determine which private business loan type suits your business goals and circumstances.

Step 2: Prepare the Required Documents

Once you’ve selected a loan type, gather the necessary documentation to facilitate the approval process.

Step 3: Receive an Initial Loan Assessment

After submitting your documents, Greystone Advisory conducts an initial loan assessment. During this process, we will review your application and supporting documents to gauge your eligibility and thereafter submit your loan application to our list of private financiers for their final approval. We’ll provide you with feedback on your application status, outlining the likely loan terms, such as interest rates, repayment schedules, and any further information needed.

Step 4: Get Approval and Funding

If your application is successful, the Lender will issue Letter of Offer (“LO”), and we will arrange for you to sign the LO at the Lender’s office.

Step 5: Finalize the Loan Agreement and Disbursement of Funds

The final step involves reviewing and signing the LO. Our advisors will guide you through the terms to ensure you understand your obligations and repayment schedule. Once the LO is signed, we will liaise with the Lender to ensure swift disbursement of the funds, and you can start using the capital for business expenses such as inventory purchases, expansion plans, or operational improvements.

Have questions? Contact us to learn more about how we can help you with the private business loan application process.

FAQs

What is a private loan for business?

A private business loan provides business funding through an alternative lender. With traditional lenders like banks and financial institutions, the application process is typically very involved. Most have strict underwriting standards and eligibility requirements. A healthy credit score is usually mandatory, and businesses generally need to have strong revenue to be considered. However, private business lenders tend to have looser eligibility criteria, though interest rates are usually higher.

Can I get a loan to start my own business?

One of the main challenges for startups is that most lenders have time-in-business requirements. The minimum can range from six months to several years. Some lenders also have annual revenue requirements. However, it’s still possible to get a loan to start your own business. If you opt for private business loans, lenders might provide lines of credit to businesses that have only been operating for at least 3 months.

Do you guarantee the success of the application?

No loan broker can guarantee the successful outcome of your application. However, we at Greyston Advisory are confident in helping business owners secure business financing solutions that would align with their needs and business goals. With our years of experience and a proven track record, we understand the nuances of business financing and work diligently to find solutions even in complex situations.

Who are Greystone Advisory’s lenders?

Greystone Advisory focuses on securing funding solutions from our panel of non-bank lenders and financial institutions. Our network includes international conglomerates, local main board-listed companies, family offices and private equity funds, among others.

Aside from private business loans, we also have lenders that can provide personal loans without collateral and property loans in Singapore.

Are there any fees associated with private business loans?

Yes, private business loans may come with additional fees, such as loan processing fees, origination fees, and early repayment fees. These costs vary depending on the lender and loan type, so it’s important to review all terms before proceeding.

Are there flexible repayment options for private business loans?

Yes, many private lenders provide flexible repayment options, including customized repayment schedules designed to align with your business’s cash flow. This allows you to better manage your finances while repaying the loan.

Situation 1	BANK’S REPOSSESSION
Deal Type	Refinancing with Fresh Cash-Out
Property	3 Bedroom Condo along Meyer Road
Property Value	$3.2M
New Loan Amount	$2.4M (with fresh cash-out of $500K)
LTV	75%
Synopsis	Customer, age 51, a senior marketing director in the food logistics industry, was being retrenched in August last year without any prior notice. With his wife being a full-time homemaker, he found himself soon having difficulties in servicing his mortgage repayments, resulting in the bank taking steps to repossess the property for a mortgagee sale within a short span of 6 months. Despite only having a $1.4M outstanding mortgage with $600K of CPF usage, the bank was unable to grant him additional cash-out facilities to tide him through this challenging period, as he couldn’t pass the 55% TDSR threshold in the absence of regular reported income.
Solution (1)	Luckily, the customer managed to find us in time and we eventually saved his house from being repossessed. Arranged our private property lender to grant a $2.4M mortgage loan, out of which $1.4M to redeem his existing mortgage, $600K to refund to CPF with remaining $400K fresh term loan for his personal use, which includes servicing of the monthly instalments with the new private lender.
Solution (2)	The customer managed to find a new employment sometime in March this year. We had since successfully helped the customer to refinance the $2.4M from the private lender sometime in September this year.

Situation 3	INHERITANCE DISPUTES
Deal Type	To finance purchase of sibling’s share in the property
Property	Sem-Detached house along Jalan Seaview
Property Value	$$7.5M
New Loan Amount	$2.8M
LTV	37.5%
Synopsis	Customer, age 62, had jointly inherited the above fully-paid property together with his sister when their father passed away sometime in June last year. Both siblings were at constant disagreements regarding the sale of the property. Customer had always wanted to keep the property for future capital appreciation and his sister was in favour of selling the property so that she could use the sales proceeds to fund her new condo purchase.
Solution (1)	Unable to reach a consensus, the Customer then wanted to buy over his sister 50% equity stakes in the property (valued at $3.75M). Customer was unable get the bank to finance his part purchase exercise as he cannot meet the TDSR requirement and loan tenure. We then managed to get our private lender to finance his purchase of his sister’s share with a $2.8M loan (with a 75% LTV against the $3.75M purchase price)
Solution (2)	Separate financing had also been arranged for the remaining $950K cash difference (being the balance of the remaining 25% purchase price), which was secured by pledging part of Customer’s 50% stakes in the property as well.

Situation 2	BANKRUPTCY LAWSUIT
Deal Type	Refinancing with Fresh Cash-Out
Property Type	Detached House in Newton Area
Property Value	$14M
New Loan Amount	$10M
LTV	71.4%
Synopsis	Customer, age 72, was facing one of the biggest challenges as a veteran businessman, when one of his suppliers had filed a bankruptcy application against him (being the guarantor for his group of F&B companies). After successfully obtained the court judgement for a claim-sum of $1.9M, the customer was eventually given 2-month timeline to settle the payment, failing which he would be in imminent danger of being declared a bankrupt, thus crumbling his business empire which he had built for decades. Despite only having an outstanding mortgage of $7.5M (with a 53.5% LTV against its $14M valuation), no bank is willing to explore the fresh financing in view of his age and more importantly, the pending bankruptcy lawsuit.
Solution	Secured a $10M financing (@ 71.4% LTV from a non-bank lender, out of which $8.5M was to redeem his existing bank loan with another $1.9M to be earmarked to be paid to the supplier on the agreed deadline. Remaining $600K was disbursed to the Borrower for his personal use. With the payment made to the supplier and eventual complete withdrawal of the bankruptcy application, we have thus successfully helped our customer to avert the disaster of being made a bankrupt at this age and he can now refocus on rebuilding and restructuring his other business portfolio

Challenge 6	MULTI-PROPERTIES OWNER
Deal Type	Refinancing (with fresh cash-out)
Property	Good Class Bungalow (“GCB”) in Holland vicinity
Property Value	$70M
Existing Mortgage	$28M
New Loan Amount	$50M (with fresh $22M cash-out)
LTV	71.4%
Synopsis	At the age of 60, our borrower stood as a seasoned property investor with a remarkable portfolio of prestigious GCBs and luxurious Sentosa Bungalows. His journey was a testament to years of astute investment decisions. However, even a seasoned investor can face hurdles. Despite his impressive corporate and professional profile, the ever-evolving TDSR regulations had cast a shadow over his aspirations for further financial growth. His own bank had to adhere to these stringent regulations, leaving him unable to access additional facilities.
Solution	With determination and creativity, we set out to secure a $50 million mortgage loan from a non-bank lender. What made this solution stand out was the 18-month interest servicing repayment plan. Now equipped with fresh capital, our borrower could breathe new life into his retail business, expanding it like never before with a $22 million cash-out facility. But our assistance didn’t stop there. We successfully guided the borrower in refinancing the mortgage loan back to a local private bank just nine months after the initial disbursement. This win is a narrative of resilience and adaptability.

Challenge 3	POOR CREDIT GRADING
Deal Type	Refinancing with Fresh Cash-Out
Property	Bungalow in Katong
Property Value	$9M
Existing Loan	$5M
New Loan Amount	$7.5M (with fresh $2.5M Cash-Out)
LTV	83.3%
Synopsis	At 62 years old, our customer faced a roadblock. His aspirations for additional mortgage financing hit a snag as his bank hesitated due to both his age and an unfavorable “HH” credit bureau rating. This rating was a result of overdue credit card facilities amounting to a hefty $1.2 million.
Solution	With a determined spirit, we sought out an alternative path. Through our network of non-bank lenders, we secured a remarkable $7.5 million term loan facility. It was not just a financial transaction; it was a lifeline. The first step was to use $2.5 million of this fresh term loan to clear off the burdensome $1.2 million in overdue credit card facilities. It was a moment of relief, a chance to leave the past behind. But that was not all. The remaining funds were now at our customer’s disposal for personal investments, a fresh start to chase new dreams. This story encapsulates our commitment to finding solutions when doors seem closed. .