Beware of Loan Predators: Common Loan Shark Scams and How to Avoid Them

Woman handed the pen for signing in loan document

Many foreigners in Singapore find themselves strapped for cash from time to time, especially when they need money for medical emergencies or to pay their bills. These foreigners are in dire need of personal loans to settle their payables, and are, therefore, the most vulnerable to loan shark traps.

Some unlicensed money lenders or loan sharks in the state offer small loans with extremely high interest rates and hidden fees. Their tactics, in fact, have become brazen in recent years, with some targeting unsuspecting victims who have never done business with them directly. These loan sharks even threaten people with violence, charge them large interests, and cause millions of dollars in property damage.

As with all scams, the best defence is knowledge. So, let’s take a look at the common loan shark scams in Singapore and how you can avoid them.

1. The licensed moneylender impersonator

These tech-savvy Ah Longs advertise their ‘service’ through text messages, emails, SMS blasts, Whatsapp and other social media platforms. At first glance, they seem professional and legitimate, putting up a whole facade. Unknown to the common folk, they impersonate licensed moneylenders by using legitimate registration numbers from the Singaporean Monetary Authority. They use important credentials and information illegally, from the business name to the business address and registration number. Be wary when you receive offers about loan programs you never applied for, or be generally vigilant if you’re thinking of taking a loan.

2. The loan collector scam

This scam is pretty simple, but many still fall for it. The loan shark acquires the victim’s phone number and calls them, claiming that the victim has borrowed money and they are asking for repayments. In some cases, they bluff and make up stories, explaining that a third party has cheated the victim and that they are there to get the payment for the lending company.

If the victim refuses to pay, they threaten him/her with consequences, such as assault or vandalism to property. Some people who have borrowed money in the past fall prey to this tactic easily and immediately pay the scammer. If you have borrowed money in the past, call your lender or agent first and verify the call you received.

3. The fee transfer scam

The fee transfer scam is the most dangerous because the loan shark not only takes people’s money but also gains access to their personal information. The Ah Long will text or call the victim, claiming that they have been approved for a loan. The catch is that the victim needs to pay an admin fee before they can take the loan. The scammers will then trick the victim into giving them SingPass access, giving them the means to see personal and private information that they can later use to intimidate or harass the victim.

If they are successful, the loan sharks have scored a huge win. They not only receive the money transfer fee, but they also acquire personal information that they can use as leverage on their victims.

Other tell-tale signs of a loan shark include people who offer to do business without a signed contract. The law requires licenced moneylenders to use contracts for security and accountability. Loan sharks also offer huge sums of money to victims despite the victims’ relatively small incomes. Additionally, if they operate without an office and they’re not listed on the Ministry of Law’s website, they’re most likely illegal moneylenders who charge their victims with exploitative interest rates and fees.

Apply for a Foreigner Loan with Trusted Moneylender Capital Funds Investments

As a foreigner in Singapore, it can be difficult to find a financial institution you can trust to offer you a loan. Capital Funds Investment is Ministry of Law-approved and licensed. We provide foreigners in Singapore with a fair loan, and we never abuse the confidential information that we receive during the application process.

For more information regarding our CFI Foreigner Loan, call us on (65) 6281 7736 or send an email to enquiry@loancfi.com.

How to Receive Financing for Your e-Commerce Business

Paper cartons with a shopping cart

In recent years, Singapore has risen to become one of the most tech-savvy countries in Asia. The country has consistently placed in the top 10 of the Waseda-IAC International Digital Government Rankings which highlights countries that work towards fostering digital innovation in all sectors and industries. Singapore has evolved into a world-class technology hub that has a booming e-commerce industry that is only expected to grow in the coming years.

Just two years from now, Singapore is expected to have approximately 4.11 million e-commerce users. Revenue from the digital marketplace is anticipated to grow to 5 billion USD by 2021 with electronics as the leading product category. With technology continuing to evolve into an important tool in our everyday lives, small and medium-sized entrepreneurs (SMEs) are moving online to reach more people.

For most entrepreneurs, acquiring a business loan in Singapore is a challenge that is hard to overcome. However, it is imperative in order to further grow and develop the business. With the online retail boom showing no signs of stopping, securing funding for your online store gives you the opportunity to take advantage of this.

How to Get Financing

  • Improve Your Business Plan – Your business plan does not have to be complicated. The purpose of a business plan is to address the key factors, obstacles, and possible solutions to your business. In keeping it simple and straight to the point, you are giving yourself a clear look as to what you should focus your efforts on in order to improve your business. This will also help you decide how much you will need in funding and how to allocate it properly.
  • Provide Quality Products and/or Services – Part of ensuring the success of your business is providing your customers with high-quality products and/or services and sustaining this. Creating a strong customer base is making sure that they are happy with what they are purchasing from you. This, in turn, allows you to grow your business as it establishes a reputation centred on quality and consistency which fosters trust and loyalty.
  • Set Realistic Goals – There is nothing wrong with dreaming big for your business. However, setting realistic short term goals allows you to focus on the areas that need the most attention. For new businesses, problem points are common and numerous. In choosing to address these, you are lessening potential troubles your business may face in the future. It also gives you a clearer picture of how much funding you will need.

Where to Get Financing

These days, there is no shortage of where to get funding for your online business. However, not all of them are compatible with your needs. In assessing your business and what it will need financially, you can make an informed decision on where to get funding.

  • Personal Savings – This is a popular choice for SMEs as it has fewer complications than other options. Aside from the absence of elaborate applications and high-interest rates, there is also the advantage of keeping your business solely yours. However, this option does present the drawback of significantly denting your savings or retirement fund.
  • Credit Cards – This is a viable option if you have several credit cards. While this gives you the freedom of still using your own money without having to sacrifice your savings, there are plenty of problems that might arise along the way. One of these is when your interest rates are high and your revenue only allows you to make the minimum payments.
  • Licensed Moneylender – A licensed moneylender often tends to favour SMEs over bigger companies. In Singapore’s highly competitive market, this option gives you the chance to get a loan that will help you with your business. Capital Funds Investments is meeting this demand by giving Singaporean SMEs business loans that will sustain the growth and development of your online business.

Capital Funds Investment understands the important role SMEs, particularly those working with the e-commerce model, play in the country’s economy. That is why we offer quick and easy financial solutions that are aimed at supporting and sustaining small and medium business ventures. We work closely with clients to find the best solution for their needs.

For more information about Capital Funds Investment and our business loans, call us on (65) 6281 7736 or send us an email at enquiry@loancfi.com.

4 Ways You Can Improve Your Credit Score to Get Better Loan Deals

person holding a credit card

Singapore has two credit bureaus that issue credit scores and reports: DP Credit Bureau and Credit Bureau Singapore. Both institutions track your financial history and compile it in a report containing vital details, such as the type and number of enquiries you made to lenders, repayment track record and loan details.

If you find that the score issued to you by either credit bureaus is high, you’ll be able to enjoy a wide range of benefits. Banks and other financial institutions, for instance, will be keen on lending the money you need. You’ll also be eligible for a higher loan amount and lower interest rates. A poor credit score, on the other hand, may make securing a loan approval difficult. Even if the financial institution does approve your application, it’s likely that you may not get the interest rate or loan amount you want.

Building a good credit score, therefore, is crucial to get the appropriate funding you need. Here are a few suggestions to help you achieve your goal:

1. Pay Your Dues on Time

Payment delays can damage your credit standing. A delay beyond 30 days, for instance, will put you in the delinquent category, which will negatively affect your score over time. You can avoid this by creating due date reminders on your calendar. If you are unable to pay loan instalment on time, inform your financial institution before the due date.

2. Refrain from Borrowing from Too Many Lenders

Keeping track of several lenders can be challenging. Missing just a single payment on one lender can ruin your credit score. The sensible approach is to limit the number of lenders to make tracking easier for you.

3. Use Credit Cards Wisely

Individuals who use their credit card for shopping and other expenses have the option to pay the minimum amount due and defer the remaining payment for the succeeding months. This common strategy, however, can backfire, as they’ll likely end up accumulating a massive credit card debt and consequently paying a significant amount as interest.

Rather than use your credit card this way, look at it as an alternative mode of payment. Once you get your monthly statement, make an effort to pay off the whole amount.

4. Minimise Your Loan Application Enquiries

Making multiple application enquiries can decrease your credit score. When you reach out to several financial institutions frequently, you are creating the impression that you’re desperate for funds. Even if you intend to grab the best deal possible, the signal you’re sending out is totally different. So, limit your enquiries to help maintain your credit standing.

If you’re looking for a loan to help grow your small business, Capital Funds Investments is here to help. As a trusted business loan provider in Singapore, we offer both unsecured and secured loans to businesses. When you turn to us for your loan needs, our experts will work with you to figure out the optimal loan amount for your business. Additionally, we’ll treat you as one of our respected clients. Rest assured we won’t push you to borrow more than what you can afford.

Call us on 62817736 or send us an email at enquiry@loancfi.com.

4 Guaranteed Ways to Improve Your Business Loan Eligibility

two people handshaking above table with laptop

It takes a lot to run a business, big or small. It needs business know-how, marketing knowledge and, of course, funds. To grow your business and live the entrepreneur’s dream, you may have to take a small business loan. This can be through a bank or a licensed moneylender in Singapore.

But before these establishments give you the time of day, you have to show them that your business is worthy of the money they’re going to lend.

To make sure you get approved, follow these four business loan eligibility-boosting tips:

1. Develop a Strong Business Plan

It would be nice if you could just walk into a moneylending establishment and say, “I need money,” and they’d give it to you right away. Unfortunately, it isn’t as simple as that. A business’s endgame is almost always about money or profit, but from the very beginning, you must have a solid business plan. Without planning, business owners may find themselves being turned down for a loan.

That’s why it’s important to create a business plan that details the purpose of your loan. Knowing what you’re going to use the money for will enhance your chances of getting approved for a loan. What’s more, a strong business plan lets lenders know that you’re a smart borrower.

2. Keep Your Documentation in Order

The application and approval process of each lender is different. Some might require a minimal amount of information, while some might take months to complete the process. But, you can do one thing to prepare and hopefully speed things along: get your documentation in order.

Ultimately, lenders review an application based on your risk profile and credit report. Readily available and clear financial statements, both old and current, give lenders a proper view of your fund management abilities. A well-managed balance sheet shows lenders that your business is fiscally responsible and financially stable. All these elements go a long way towards improving your loan eligibility.

3. Review Your Online Presence

Almost every business now has some kind of online presence. Some have it all—a website and well-managed social media — while some have either of the two. Having an online presence is essential for businesses nowadays, especially for small enterprises. With the advent of one-click connectivity, 82 per cent of smartphone users look up possible purchases before they buy in-store. What’s more, 45 per cent read reviews before making a purchase.

These numbers show how important your online presence is. People’s perception of your business online can influence lenders’ decision on whether to grant you a loan or not. It’s part of their due diligence to review your business’s and your personal online presence. With a polished online profile — positive reviews and professional conduct — you can show the potential your business has.

4. Prepare to Provide a Collateral

Moneylending is a business unto itself. This, of course, means that lenders need you to provide collateral so they have something to fall back on in case you can’t pay your loan. Collateral can be an asset, such as real estate or inventory, which lenders can seize and sell.

Before applying for a loan, consider what assets would be appropriate to use as your collateral.

An Easy Way to Acquire Business Loans

At Capital Funds Investments, we understand the financial needs that come with running a business. This is why we offer both secured and unsecured business loans to give you the boost your company needs. When you work with us, we’ll give you the best lending service to help you take your business to the next level.

Apply for a loan with Capital Funds Investments now. Contact us or e-mail enquiry@loancfi.com to learn more.

Safe Transactions for Foreigners: Advantages of Working with Licensed Moneylenders in Singapore

A doller bills in a wallet

Highly stressful emergencies become doubly difficult when paired with the burden of suddenly needing large sums of money. If you are a foreigner in the country, finding the right institutions to borrow money from becomes more complicated. Friends and family are unlikely options, given their unavailability and the added risk of causing tension in your relationships with them. If you go to local banks, you’d need to go through many processes and requirements before you obtain your money, which is not ideal if the circumstances are taxing and you are already pressed for time.

One possible solution to your money-borrowing woes is to find a trustworthy and convenient loan source that can address the complexity of your situation. In cases like this, working with licensed moneylenders like Capital Funds Investments can help you obtain the money you need without adding to your stress. We provide options for you to receive financial relief as soon as possible, making sure you can take care of your emergency here in Singapore.

Recognising the Urgency of Loans

Dealing with emergencies requires a quick and practical response. Our streamlined approval process makes it possible for you to address your financial circumstances immediately, preventing the situation from escalating further. We know that going through a painfully long application is not on your list of preferences right now, so we adjust by giving you a straightforward way to borrow money.

Guaranteeing Safety and Security

Unfortunately, some organisations treat foreigners looking for loans as chances to charge unfair fees and interest rates during a trying time. As part of the government’s list of licensed lending services, we can ensure that our operations are legal and straightforward; there are no hidden fees, surprise payments or abuse of personal information, helping you direct your full attention towards dealing with your emergency.

Adjusting to Your Situation

Our packages vary, depending on the amount you need and your current situation. We understand that persons going through difficult financial times may be unable to work with demanding loan repayment schedules, so we work with you closely to find a loan package that is beneficial for both sides. Rest assured, our main priority is giving you the immediate help you need, and we are committed to finding the best possible solution for you.

Couple Availing Personal Loan in SGBorrowing Money Made Easy

At Capital Funds Investment, we offer competitive loan packages for foreigners in Singapore. The foreigner loans are part of our wide range of loan options, including fast cash loans, business loans, personal loans, debt consolidation loans and payday loans. We are licensed by the Ministry of Law, ensuring that your transaction with us will remain fair and secure. We are committed to helping those who are in unfavourable financial circumstances, providing credible and trustworthy loan solutions for clients. With Capital Funds Investments, you are sure to find a loan that will help you relieve your financial burden without worry.

Apply for a loan now. Call us on 62817736 or send us an email at enquiry@loancfi.com.

How Personals Loans from Licensed Moneylenders Can Help You Pursue Your Hobbies

Personal Loan SG

Finding the right time to do the things you love, such as your hobbies or a personal project — also known as a “passion project” — is tricky. Whether it’s starting your small crafts business or joining that entrepreneurship seminar you have always wanted, other priorities can keep coming up and prevent you from making time for those side projects you wish to pursue.

The reason these projects are often postponed is that they are not as urgent, productive or financially rewarding as other tasks. However, these projects can be worthwhile. Learning and honing a new skill is never a bad idea. Also, it may turn into an additional source of income, especially if the project is marketable.

Changing the Mindset about Side Projects

The main hindrance to pursuing your side project is usually the cost. If you are going to spend money, spending it on something tangible like stocks and insurance sounds more practical.

One way to get past this mindset is by viewing these projects not as expenditure but as worthy investments. For example, if you are thinking of joining a week-long workshop on entrepreneurship, you are investing in skills development and marketability. The new skills will reflect on your resume and will help diversify your skill set and what you can offer to potential employers. If you are shelling out capital on your crafts home business, turning it into an extra source of income can give you a well-deserved financial boost.

Financial Foundations — Advantages of Personal Loans

Once you think of these projects as investments, you can now consider pursuing them in the framework of risks, rewards and goals. For example, if you are choosing between guitar lessons and social media marketing seminars, the latter might be more in line with your dream of starting your own business. Aligning your projects with your long-term goals can help you determine which opportunities you should prioritise.

If the cost is a big deterrent to an opportunity, one way to get around it is by considering personal loans. Licensed moneylenders have packages that fit the scope of your investment, helping ease the financial burden by spacing out the payment intervals without eating into your savings account.

At Capital Funds Investments, we have personal loans that can become the financial support you need to pursue your hobbies and the creative projects you have always wanted. Some of the benefits of our personal loans include:

  • Hassle-free approval
  • Quick transactions and processing
  • No collateral requirement
  • Flexible with different amounts
  • Minimal requirements for documents

The reason personal loans are ideal for your side projects is that they can accommodate a wide variety of situations. Whether you are enrolling in a starter business course, taking weekend workshops or bulk-buying materials for your products, personal loans are adjustable and adaptable.

Business Loan SGReliable Money Lenders in Singapore

At Capital Funds Investments, we offer convenient personal loan packages in Singapore. The personal loans are part of our available loan packages which include business loans, foreigner loans, payday loans and debt loans. We are committed to providing favourable loan packages for those in need of the extra financial boost. We have an official license under the Ministry of Law, making us clearly a reliable option for your borrowing needs. With Capital Funds Investments, you can find a loan package that matches your current project.

Pursue your hobbies and creative projects now. Call us on 62817736 or drop us an email at enquiry@loancfi.com.

3 Essential Tips to Help Choose the Right Money Lender in Singapore

It is common for people to face a financial crisis at some point or other in time. When such a situation arrives, you might need to look for a reliable, licensed moneylender who can give good financial help when needed. He or she should offer legitimate advice and information on loan repayment schedules.
Singapore has several money lenders which can make it challenging to find the best option. If you are looking for a licensed moneylender in Singapore, it is important to consider the following aspects:

1. Credibility
Before choosing a moneylender in Singapore, you should find out the reputation of the company in the market. You should also inquire about their license so that you can rest assured that the moneylender is eligible to operate legally. You should also take into consideration the duration for which the company has been in the industry. This can be considered a reflection of company’s performance.

2. Interest rates
Once you apply for a loan, you will need to pay the interest. In Singapore, there are several moneylenders and each of them may offer different interest rates. In such a scenario, you should compare the different rates before making your final decision. Do not forget to check for any hidden fees before you sign a contract.

3. Application and approval
Applying for loan from a bank is never straightforward. Banks have a stringent process for loan approval. Especially for people with poor credit rating, it may be next to impossible to get a loan. One of the significant benefits in choosing a moneylender in Singapore is the lack of a background check. Even if you have a poor credit history, they will lend you money though you might be charged more interest.

These benefits make moneylenders one of the ideal options for people who can’t wait for loan application and approval. You simply need to analyse the terms and conditions of loan repayment so that you don’t end up struggling to repay the loan.

Search the web for more information and suggestions on choosing the best licensed moneylender in Singapore.

All You Need to Know About Payday Loans

Payday loans are short-term loans which can be used to get through a rough patch. However, there are only a few situations where these loans truly end up being helpful, rather than becoming a burden around your neck that you end up carrying for many years. Before using a payday loan, it is important to understand the risks and benefits associated with it.

There are many options available for taking a payday loan in Singapore and knowing more about the nuances of it can help in making the correct decision. Here’s a look:

What are payday loans?
Payday loans are small loans which can be used when you are in need of quick cash for an emergency or a personal project. Often, payday loans are short-term loans for a limited amount of money. To get the loan, you might even have to write a check for the amount you are borrowing along with a fee. The check will be left with the lender so that they can cash it once you are ready to repay.

Sometimes, loans can also be extended if you are unable to repay them on their due date. You don’t usually need a good credit score for a payday loan in Singapore. Thus, it is very popular with people who are facing a temporary financial crunch.

Cost of payday loans
Payday loans can be extremely expensive if you let them drag on, as they are meant to be repaid quickly. When left unpaid, the compound annual interest rate can hit interest rates in the realm of 3 digits. For example, you might have to pay as much as a $20 fee just to borrow $100 for two weeks.

Payday loan pitfalls
The main drawback with payday loans is their cost. Because of the extremely high fees, they might not help you solve the real problem. In fact, with poor financial planning, payday loans can actually end up making things worse for you.

The payday loans can get you through a rough patch once or twice but it is not always the best option. Bouncing checks that you write to the payday loan establishment can get you into trouble. Always take into account what you are able to afford paying off and whether the situation is urgent before going forward with the application.

If you are struggling with the repayment of several different loans, you might also want to consider a debt consolidation loan in Singapore to help with repayment. Debt consolidation loans do not reduce the amount of the loan to be repaid, it consolidates all the loans into. However, this consolidation might be able to drastically help you reduce the interest rate associated with all of them. It can be considered to be similar to refinancing a loan in some ways.

Search online for more information and suggestions on how to choose the best debt consolidation loan in Singapore. You can get in touch with moneylenders and ask for quotes to choose the best loan provider at the most affordable price.

Five Tips for Getting a Cash Loan from a Moneylender in Singapore

Even as little as a few years back, it was quite difficult to get a loan in Singapore. Fortunately, in recent years, it has become easier to get a loan due to the increase in the number of money lenders here. There can be many reasons for Singaporeans to take a fast cash loan such as paying medical bills, accidental bills, or funding a house investment, for example.

However, there are certain things you need to pay attention to while acquiring a loan from the money lender. The first thing to consider when applying for a loan is to search for a licensed moneylender in Singapore. There are unauthorized moneylenders in the market which are not recommended for getting loans from, as their rate of interest is high and failing to repay the loan may lead to severe consequences.

Here’s a look at some useful tips on getting a cash loan from a licensed money lender Singapore:

1. Necessary documentation
You will need several documents for identification purposes while applying for a loan. It will be helpful to bring proof of your job such as an ID card from work. The lender will provide you a loan when they feel you are reliable and are able to repay the loan.

2. Spotting an illegal money lender
When applying for the loan, you should find out if the lender is licensed. If they are not licensed, choose another lender and always make sure to get all documentation and identity proofs back.

3. Make sure to sign the contract and get a copy
If you don’t have a copy of the documents, your loan could be considered fraudulent. Also, avoid signing a contract that looks incomplete. It should state all the terms of loan such as the payback period and interest rates.

4. Inquire about collateral
Before agreeing to a loan, confirm the collateral requirements. In case you fail to repay the loan, the money lender in Singapore can claim whatever you have put up as collateral.

5. Mutual respect
Choose lender that treats you with respect. Never go with a money lender who intimidates you or treats you in an unkind manner.
Explore the web for more information and tips on how to find the best money lender in Singapore.

What are Payday Loans and What do You Need to Know about Them?

Payday loans play a balancing role in the short-term lending sector in Singapore, providing temporary liquidity to those who need it. For the uninitiated, payday loans are usually a short-term loans with a higher rate of interest as compared to other loans and the dues should be paid on your next payday. Depending on the regulations of countries, you can get the payday loans online or even from storefront payday lenders.

Though payday loans are one of the most popular loans now, it also comes with a few risks. One should always weigh the pros and cons well before taking a payday loan in Singapore. Here’s a look at some of the fundamental features of payday loans to help decide if it’s suitable for you:

1. Loan size
Payday loans are only for small amounts and you cannot use it for paying huge debts. Mostly, the payday loans are used to make payments of the credit card bills and other outstanding liabilities that are of a small amount. A common loan amount for this is around $500 but can, of course, can be higher or lower depending on your need.

2. Single repayment
Unlike other loans, you don’t have the privilege of repaying in installments and the amount has to be made in one go on the next payday or with income received as a premium of social security or a pension. The due date for payment is usually 2 to 4 weeks from the issue date of loan and it is usually decided on the day of the loan itself.

3. Mode of repayment
To repay the loan, you will need to give a post-dated cheque for full balance which includes the fees as well. One can also authorize the lender to electronically debit the funds from your account on the due date.

4. Risks involved
Payday loans come with certain risks such as unable to pay the loan on the next payday, being charged with a higher rate of interest, the risk of getting in deeper debt, reduced credit scores, higher fees and an additional loan to the current loans. Thus, one should make the decision only after considering all the above-mentioned risk factors.

Explore the web for more tips on finding a reliable lender who can offer a fast cash loan with minimum risk. It is recommended that you read all the terms and conditions mentioned in the loan documents to ensure that you never get trapped in any fraudulent activities or scams. Keep browsing the web and read about loan-taking tips that can help you to stay protected from fraudulent moneylenders.