Frequently Ask Questions
What are the services offered by Beacon Financial?
We provide the following solutions to help businesses:
- Build a strong fundamental base by improving cash flow
- Raise funds with certainty and speed
- Protect your business against unexpected events
How is Beacon Financial different from other loan brokers in the market?
At Beacon, we believe in building strong fundamentals so that you are able to confidently grow your business to the next level. That is why our team used our combined experience and expertise to carefully develop 3 products which we believe are critical to the success of every business.
Beacon RAISE – Raise funds from a variety of funders with certainty and speed
Beacon ADVISE – Improve cash flow, key business metrics and optimise trade cycle
Beacon PROTECT – Manage trade risks, protect assets and reduce liabilities
Unlike other loan brokers who only provide loan application services, Beacon’s experience in working with businesses of all sizes and across multiple industries means that we are familiar with your business needs. We also seek to resolve underlying financial issues facing the business and do not encourage loan stacking as it will eventually result in liquidity.
We seek to bring a fresh perspective to grow your business to the next level by rapidly identifying and delivering effective solutions to ensure your business remains financially sustainable and resilient to economic downturns.
What is Beacon RAISE?
Beacon RAISE is our proprietary platform that incorporates all our funders’ approval criteria, allowing your business to know which funders to approach immediately and how much funds your business qualifies for.
How much funding can I access via Beacon RAISE?
The funding amount is dependent on several factors such as financial statements, bank statements, credit bureau score, available assets, and future revenue projections. Some government loan programs such as the Enhanced SME Working Capital Loan imposes a limit of $600,000 per company.
How long is the entire funding process?
Upon receiving the full set of documents, you will receive our funding proposal within 3 days.
After the consultancy agreement is signed, the approval time for funds typically takes between 2 – 3 weeks. Funds will be disbursed within 2 to 7 days.
How is my interest rate determined?
Your interest rate will be based on a review of your financial documents. Generally, higher risks and unsecured loans will have a higher interest rate.
Below are the estimated interest rates,
- Unsecured term loans from banks: 3% to 7% per annum.
- Asset-based financing: 2.2% to 3.5% per annum
- Trade Financing from banks: 4% to 6% per annum
- Property Financing: 2.2% to 6.5% per annum
- Non-bank loan provider: 8% to 48% per annum
Our team at Beacon is committed to sourcing for the lowest interest rates for your business.
What information/documents do I need to submit?
You will need to submit the following supporting documents in order for us to perform a full banking-level analysis on your business:
- Latest 2 years of financial statements
- Latest management accounts
- Latest 6 months bank statements
- ACRA Business Profile
- Latest Debtor and Creditor Ageing List
- Last 2 years Notice of Assessment for all directors
- Credit Bureau Score for all directors (within a month of submission date)
Are there any hidden processing charges?
At Beacon, we are committed to transparent and fair pricing for all our clients. All processing charges will be made clear in the proposal to our clients. Beacon’s fees are only applicable upon the issuance of a letter of offer from the funder. We also do not charge any upfront fees if the loan is not approved.
Why should I approach Beacon instead of going to a bank or funder directly?
Getting a bank loan approved is not an easy process – banks have stringent approval criteria and look at many different factors, most of which are not made available to the public. Companies that apply to banks directly without knowing if they qualify run the risk of getting their application rejected. Once rejected, Banks will usually impose a 6 month blackout period, reducing your funding options.
Beacon RAISE incorporates all of our funders’ approval criteria, performing a banking-level analysis of your financial data and matching you to the funders most likely to approve your loan application, saving you precious time and money.
Our network of more than 50 funders is among the largest in the market and our experienced team will be able to structure a suitable financing solution for your business, enabling you to achieve your business objectives.
Can I still get financing if my Credit Bureau Score is poor?
Yes, it is possible to still get a business loan from non-bank funders even with a poor credit bureau score. We understand the difficulties faced by business owners during the early stages of their business.
Our team at Beacon has helped many directors with poor credit bureau score secure business loans from non-bank funders. We have also advised many business owners on the steps to improve their credit bureau score, eventually qualifying for a bank loan.
Although the interest rates charged by non-bank funders are higher than banks, these loans are meant to be short term and act as a bridge to eventually securing a loan from a bank.
How can a business loan improve my revenue, cash flow and net profit?
A business loan acts as leverage that enables you to take on new projects and introduce new products and services, therefore adding to your overall revenue. Asset-based loans can help your business to invest in machinery and equipment that can eventually increase revenue.
Certain loans such as trade finance and receivables finance help your business to close the cash flow gap between paying your suppliers and receiving payment from your buyers. This results in improved and healthy cash flow which is the fundamental base of any successful business.
Businesses may sometimes face fluctuating revenue and cash flow caused by interruptions such as late payments or seasonal slumps. Short-term business loans may help to tide over this period.
When businesses have more cash on hand, they may use it to bulk purchase or pay their suppliers upfront in order to enjoy supplier discounts. The discounts add to a business’s net profit.
What is Beacon ADVISE?
Beacon ADVISE is our cash flow management product that advises businesses on how to implement effective cash flow strategies to close the cash-flow gap. We seek to improve working capital performance by optimizing your business’ end to end trade cycle.
How does Beacon ADVISE work?
Our software seeks to improve key metrics such as revenue, free cash flow, net profits, and debt ratios. We seek to make cash flow simple to understand and even easier to manage. Translating your financial data into actionable tasks, revealing cash hotspots and gaps, the bills you have at risk, and customers who don’t pay on time.
Beacon ADVISE is for everyone, regardless of their financial experience. Simple to-do lists, so you can deal with issues quickly and get back to doing what’s important.
How does Beacon ADVISE help me business to reduce my interest rate?
Beacon can reduce the interest rate, if your business does not meet the banks’ approval criteria, we will recommend using loans from other non-bank funders to build up your company’s financial documents before applying to the bank, eventually reducing the interest over time. It is important not to give up on a new project or business line as it will help build your track record as long as the profits from the project cover the interest payments.
We also advise businesses on the key business metrics that should be maintained in order to continue qualifying for bank loans.
What is Beacon PROTECT?
Beacon PROTECT was created to complement RAISE and ADVISE to create an all in one platform for business owners to go to. PROTECT seeks to help businesses deal with any unexpected economic downturn or events through the proper usage of corporate insurance policies, thus protecting your business downside.
How does Beacon PROTECT work?
Beacon PROTECT assists businesses to manage risks in 3 areas; trade-related risks, asset protection, and liabilities protection. We identify the potential risks in your industry facing your business to recommend suitable corporate insurance products that act as a buffer to ensure sufficient liquidity during any downturn.
Why should I use Beacon PROTECT instead of approaching my existing insurance broker?
Beacon PROTECT with our wide network of insurers on our platform, we are able to source the lowest quotes for your insurance products. With our experience, we are also able to quickly identify any potential risks facing your business.
Will I be tied to using all 3 of Beacon Financial’s products?
No, you may choose which products from Beacon Financial range you would like to use. Although, we believe that all 3 products are fluid and together will enable your business to enjoy greater benefits.