Our caveat-backed working capital loan also known as a caveat business loan, can unlock the maximum value out of your property real estate for your company to get a working capital loan using your shareholder’s properties, or the company’s properties as collateral. Residential, commercial and industrial properties all qualify. Our caveat loan allows you next-day access to cash and can be applied on properties that already have an existing mortgage. It is not subject to TDSR and LTV limits and comes with low interest rates, flexible repayment terms, and quick approvals. Our caveat loan products are underwritten and disbursed by TBS Capital, a subsidiary of Tembusu Financial Services.
In addition to caveat-backed working capital loan offerings, Tembusu Financial Services is proud to introduce our bridging loan solutions, designed to meet the immediate financial needs of businesses and individuals awaiting the sale or completion of their property transactions. Bridging loans serve as a vital financial tool to bridge the gap between needing funds now and securing permanent financing or incoming capital later. This addition aims to broaden our financial services, catering to a wider array of needs including those immediate, short-term financial requirements that many of our clients face.
Top Considerations Before Getting a Bridging Loan in Singapore
Bridging loans serve as a pivotal financial tool in Singapore for those transitioning between selling one property and purchasing another, offering a solution to immediate liquidity needs. These loans come in two main types: capitalised interest and simultaneous repayment, each with distinct repayment structures and interest calculation methods, making it essential for borrowers to understand their differences to choose the most suitable option. Moreover, due to their short-term nature, the higher interest rates and associated fees of bridging loans necessitate careful comparison and consideration to ensure affordability and alignment with one's financial planning.
Before committing to a bridging loan, borrowers should meticulously plan for its repayment, taking into account the loan's short tenure—which usually ranges from a few months to a year—and their financial capacity to repay without undue strain. This involves evaluating the liquidity and timing of selling existing property, the potential risks of market fluctuations, and the impact of any existing financial commitments on one's eligibility for the loan. Additionally, understanding regulatory requirements, seeking professional financial advice, and considering one's overall financial stability and cash flow are crucial steps in ensuring that taking out a bridging loan is a financially prudent decision.
Benefits of Caveat-Backed Working Capital Loan
Caveat-backed working capital loans offer a unique financing solution for businesses in Singapore, providing a host of benefits tailored to meet the demands of a fast-paced market environment. These loans leverage the equity in a company's property as collateral, allowing businesses to access significant funds quickly and with minimal hassle. Here are some key advantages:
Quick Access to Funds: Caveat-backed loans are designed for rapid processing, providing businesses with next-day access to capital. This speed is invaluable for companies needing immediate liquidity to seize growth opportunities or address urgent financial needs.
High Loan-to-Value (LTV) Ratios: Offering up to 80% LTV financing, caveat-backed loans enable businesses to maximize the value of their property assets. This high LTV ratio provides a substantial capital base to support various business activities, from expansion to inventory management.
Flexible Repayment Terms: Understanding the variable nature of business revenues, caveat-backed loans come with flexible repayment options. This adaptability helps businesses manage their cash flow more effectively, aligning loan obligations with their financial cycle.
Bypass Traditional Lending Restrictions: Unlike traditional loans, caveat-backed working capital loans are not bound by stringent Total Debt Servicing Ratio (TDSR) and Loan-to-Value (LTV) limits. This flexibility makes them an accessible option for businesses that may not qualify for conventional financing due to current regulations or financial standings.
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