Author Archives: Harry

How to recognize unlicensed moneylenders?

Always borrow money from a licensed moneylender. Power Credit, for example, which is good at money lending in Tanjong Pagar, is a reliable licensed moneylender. You may distinguish between a licenced and an unlicensed money lender in Singapore by looking at the following characteristics:

No legal paperwork

You must receive a loan contract from a licenced money lender in addition to the necessary legal paperwork. The payback time, available payment methods, interest rate, and any other information that can have an impact on your loan in the long run are all clearly stated in their terms and conditions. You won’t receive a loan contract or clear terms or conditions from an unauthorised moneylender.

Loan Limit

Loan amounts for secured loans are not capped. Personal loans in Singapore, for example, have a borrowing limit that is determined by your yearly salary. These restrictions must be followed by authorised loan companies. Your borrowing capacity is unrestricted from unlicensed money lenders. You have complete borrowing freedom.

Loan Fees

Since October 2015, Singapore’s licenced money lenders are limited to charging the following fees:

  • A penalty of no more than S$60 per month of late repayment
  • A fee that isn’t more than 10% of the loan’s total principle when one is approved
  • If the licensed moneylender’s claim to recover the loan is successful, the court will mandate legal fees.

These guidelines must be followed by all licenced money lenders in Singapore. On the other hand, there are no restrictions on unlicensed money lending in Singapore. Even before they issue the loan, they request the security deposit and GST for the loan processing cost. 

Excessive Interest Rates

The Ministry of Law permits registered moneylenders to only charge 4% interest on loans, maximum, per month. Additionally, the interest rate is determined by how creditworthy the customer is.

On the other hand, unregulated money lenders impose absurdly high interest rates and late payment fees. They may also ask you at any moment to cover other unstated expenses like processing charges and other small payments.

Advertisement Methods

Only three channels may be used by Singapore’s licenced payday lenders to advertise:

  • Directories for consumers or businesses
  • Websites owned by the regulated lender
  • Advertisements shown within or outside the licenced money lender’s business property.

Be careful if you receive loan promotions through other media, including fliers, text messages, emails, and/or other media. Either they are using unlicensed money lenders or licenced money lenders who have broken the law.

How to start a business

Before beginning a business, you want to make sure you’ve done everything right, but you also know that things will most likely go wrong. An ever-evolving business environment necessitates constant adaptation.

 Researching your industry and the demographics of your potential customers is an essential component of writing a business plan. Surveys, focus groups, and research into search engine optimization and open data are all part of this process.

 There are many steps you need to help in how to start a business and in order to create a customer base before you can begin selling your product or service.

  • Revise your thoughts

It’s probable you already know what you want to sell online, or at least the market you want to enter. Find existing companies in your chosen industry. Learn from current brand leaders and improve on their methods. Then you have a good idea and are ready to construct a business strategy.

  • Your organization should have a business plan in place.

Once you have your idea, ask yourself these questions: What is your company’s mission? Whom do you sell? Que voudrez-vous en How will you pay for your start-up? Many blunders are made by fledgling firms who rush into things without considering these concerns. Find your target demographic. Who will buy your product?

  • Inspect your finances

Startups that run out of cash before making a profit are frequently doomed to failure. You must determine whether or not you will require a loan to start your business. Always overestimate your startup costs.

  • Decide on your company’s legal structure

Before registering your business, you must determine its legal form. Your business structure legally impacts everything from tax filing to personal culpability. It’s critical to understand the various legal business models.

  • Register with the government and the IRS

Before registering, prepare several documents. Articles of incorporation and operational agreements for corporations. When operating a general partnership or sole proprietorship under a fictitious name, a DBA certificate may be required.

After registering your company, you may need an employer ID number from the IRS. You must also complete paperwork for federal and state taxes. In some states or cities, certain enterprises require licenses and permissions.

  • Ensure yourself with a policy.

Business insurance comes in many forms. Most small firms should get general liability insurance. GL covers property damage, bodily injury, and third-party liability. Professional liability insurance protects you if you make a mistake in your business.

  • Establish a group within your organization.

Identifying your founding team and understanding what gaps exist should be a top priority. Defining roles and responsibilities will save you a lot of headaches down the line.

  • Vendors to choose from

Almost every firm will require certain items and services. Consider the following functions required for any firm. Inquire about a vendor’s industry experience, client retention, and client growth.

Conclusion

Many actions are required before you can start selling online. Writing a business strategy requires extensive research on your industry and target market. Most start-ups fail because they run out of funding before turning a profit. Finding your founding team and filling any gaps should be your primary concern. General liability insurance protects you from mistakes made by your firm.