Individuals or businesses that are looking for debt payment solutions often consider debt restructuring to prevent declaring bankruptcy or defaulting on their debts. Debt restructuring is a process that allows parties to avoid the risk of default and take advantage of lower interest rates after negotiating terms with their creditors, often with the help of experienced moneylenders.
You may ask: why would creditors be open to longer loan repayment dates or reduction of debt? Wouldn’t they lose money if they do so? The answer is yes, and they are aware that they might lose a portion of their money when they agree with a debt restructuring plan. However, debtors who default on their debt or declare bankruptcy will make them suffer more compared to debtors who are willing to pay given a few allowances on interest rates and timelines.
How does debt restructuring loans work?
There are heaps of ways to pull off debt restructuring in Singapore. As mentioned, you can reduce loan interest rates by negotiating with your creditors. You can also try to extend the due date for your liabilities to get more time to acquire money to pay the loan. If you are looking to do debt restructuring for your business, you can even look into including debt-for-equity swap with the creditors and see if they’re willing to remove a portion of your debt in exchange for company equity.
Once you can negotiate a more feasible debt arrangement with your creditor, you can take out a new loan and use that to pay off your creditor. You will then repay your new loan with a new (and hopefully more affordable) interest rate.
Standard requirements when applying for a debt restructuring loan
Depending on the moneylender involved, there are varying requirements when it comes to applying for debt restructuring loans in Singapore. However, there are standard requirements that will most likely be requested if you want to move forward with the loan:
• Proof of Income
This allows lenders to see whether you at least have the capability to pay out your loan given better terms of payment. The amount of loan you may get from moneylenders will depend on your credit history and the amount of income you get.
• Credit History
Your credit history gives moneylenders a chance to take a look at your credit and payment history and see if you have been financially responsible so far, save for a few hiccups that brought you to look for a debt restructuring loan plan.
Having properties, you can serve as equities can make your financial standing look stronger in the eyes of moneylenders.
These are just some of the various requirements and documents that you may need to prepare if you want to approach a moneylender for a debt restructuring loan plan. Having these ready will make your application process faster and easier.
Why you should take out a debt restructuring loan from us
We are in the business because we understand the difficulty in acquiring fair and affordable loans, especially for people who are currently in a financial bind. If you are interested in taking out a debt restructuring loan, here are some of the reasons why you should choose us:
• Fair interest rates
Unlike some predatory moneylenders out there, we offer reasonable interest rates to individuals or businesses who are looking for debt restructuring loans.
• Wide funding range
We try to be as helpful as possible to our clients. That is the reason why we make sure to have a wide funding range—giving people who need loans the money that they need, regardless of the amount they require.
• Approval speed
We understand that debt payment are time-bound, which is why we make our approvals as fast as possible. Of course, we do not just give out money to clients without care. We still study their financial background and history and see the loan amount that they will be able to pay in the long run.
Providing loans to clients who need it is our priority. We have been in the business of assisting individuals and businesses facing financial issues for years, and we have years of experience in dealing with all types of loans.
What are you waiting for? Approach us today and see how we can help you pay off your debt with our debt restructuring loans!