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Questions You Need To Ask Before Getting Money from a Money Lender

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Money is borrowed for different commercial and personal purpose. However, mostly purpose of borrowing money is related to business. For example, when a person starts a business or decides to expand it, due to the shortage of cash, he or she borrows money. It is a convenient way to take help and then returning once your business is back or track or started making fruitful profits. Still, it can be a terrifying experience if you borrow money from a person or company with unprofessional and non-ethical attitude. You need to find somebody genuine and professional and to find such a lender; here are some questions you need to ask before getting money from a money lender Singapore, to get in touch with the right company and right people.

First Question – Terms and Conditions of Borrowing:

Yes, the first question will be related to the terms and conditions of the loan. The loan is not a gift it is the money that you will have to return under the given time period by lying inside the terms and conditions decided at the start of the contract. These terms and conditions are registered and legally signed by you and the company and you both become obliged to follow the rules and conditions given in the contract. Hence, make sure that whatever is written in the contract, it is in your favor and feasible enough for you to follow. You will have to read the given terms and conditions thoroughly and must not miss any clause. Remember, once a contract is signed it cannot be altered and you legally become obliged to follow it. In case, you will not follow the conditions, legal action can be taken against you and this will be totally a loss for your business. In the contract, there will be the following information

  • Amount of loan to be given.
  • Duration of the total loan payment/return of money
  • The rate of interest (it can vary from initial to final loan payments).
  • In how many periods you will pay back the loan.

Read thoroughly everything and make some marks some points you are suspicious about or don’t agree with. After that ask the next question:

Second Question – Are Loan Milestones, Interest Rate, or Payment Duration is Fixed or Adjustable:

The suspicions you get in your heart will be related to above-written things such as the rate of interest, payment episodes, and payment duration. Thus, you need to ask them if these are feasible elastic and adjustable or not. Make sure to discuss your concerns and tell them your financial condition in a genuine way. In this way, a good company will offer help and in case a company cannot afford you to give a loan, can simply refuse. Both things are in your favor. Why I am saying that rejection of loan is feasible because it won’t affect you in the long run especially when paying back time comes. You can move to another company with easy conditions and ask the same company to do some flexible changes in the contract. Once the contract conditions are finalized, do not sign them right away. Read them again and then ask the following question:

Third Question – In Case I Couldn’t Pay in Any Month, What Would Happen?

Well, you are human and you cannot simply take everything in your hand. There can be cases, when you could not afford to pay the fee in a month then make sure you ask the company regarding what it can do against you. Good companies offer three to four months period before taking legal action against the borrower. Make sure the duration is for three to four months so that you don’t get into trouble. Once all these points are discussed, now ask the company for a copy and then reread it. Make sure to ask your legal attorney reading the terms and conditions and everything written in the contract. Once you are totally satisfied, you are now ready to sign the contract.

Bottom line

You will have to find a company or person, or group of people that you are borrowing from with good reputation. Do not get indulged with some thugs just because they are lending you on easy conditions because it can hurt you and your business in the long run.

Thus, if you would like to look for a credible licensed money lender, Credit Xtra is definitely the go-to place, so do check us out at https://www.creditxtra.com.sg/.

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