Tackling Challenges in Securing Business Property Loans

Ah, Singapore—where property prices are high and business loan rejection rates are even higher (a whopping 80%!). If securing a business property loan feels like trying to get a taxi when it’s raining, you’re not alone.

Luckily, knowing the common hurdles and how to overcome them can improve your chances. Let’s dive into the biggest challenges and how to tackle them like a pro.

Why Should You Seek a Business Property Loan?

Not every business has a spare mountain of cash lying around to buy property. A business property loan can be a lifesaver, letting you spread out the cost instead of dropping a lump sum that makes your accountant cry.

With flexible repayment packages, different interest rates, and loan tenures, you can choose an option that won’t leave you eating instant noodles for the next decade.

Common Challenges in Securing Business Property Loans

Getting a commercial property loan isn’t exactly a walk in the park. Here are some of the biggest challenges—and how to tackle them like a seasoned entrepreneur.

Challenge 1: Fulfilling Basic Loan Criteria

Lenders have rules, and they don’t bend easily. Most require your company to:

• Be incorporated for 12 - 24 months

• Have at least 30% ownership by a Singaporean citizen or PR

  
  

If your company is a fresh baby startup, you’ll need to wait it out or explore alternative financing, like personal loans. If you don’t have a Singaporean or PR shareholder, it’s time to go networking!

Challenge 2: Incomplete Financial Documents

Lenders want all the paperwork—income proof, tax assessments, bank statements, financial projections, cash flow reports, and proof you’re actually buying a property.

Digging up all these documents can feel like preparing for a school project the night before submission. But trust us, missing paperwork is a fast track to rejection. Get an expert to review your documents before submission—it’s worth it.

Challenge 3: Poor State of Finances

If your business finances are messier than your desktop folders, lenders won’t be impressed. They want to see:

• A profitable or at least sustainable business

• No legal claims, financial litigation, or bankruptcy

• Good credit ratings for both the business and its owners

  
  

Pro tip: Pay off outstanding debts, clean up your financial statements, and get that credit score looking healthier than a gym influencer.

Challenge 4: Lack of Planning for the Commercial Property

Lenders want to know your plan for the property. They’ll ask for:

• Location, layout, and appearance

• Projected leasing values and operating costs

• Potential returns on investment

  
  

If your plan is just "buy property, hope for the best," that won’t cut it. A solid business plan will make your loan application much smoother.

The Bottom Line on Securing Business Property Loans

Business property loans are a great way to expand your assets—if you can clear the many, many hurdles. The trick? Reach out to more lenders and compare different loan terms.

And if you don’t have time to do all the legwork, Devise has got your back. You can find the best loan offers without pulling your hair out. Need expert advice? Set up an appointment with us today, and let’s make your business property dreams happen!