即日融資

The Best Use That You Can Do With the Payday Loans Now

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It is done with the peace in flash credit country. A recent news report shows that the Singapore Authority for the Financial Markets imposed a penalty order on the director of a company that has presumably offered flash credit to consumers. Flash credits, also known as SMS or mini-credits or payday loan, are loans with a term of less than three months.

The market for 即日融資 has been properly cleaned up in the past two years. The recently imposed order of court order illustrates how relevant the supervision is – and remains – on providers of payment loans.

Best payday loan explained further

In order to grant credit to consumers, the lender must have a license. An exception applies to this rule if the credit has a term of less than three months, and only insignificant costs are charged to the consumer. Insignificant costs are fees of no more than 1% of the principal amount of the credit on an annual basis. These costs include both interest and other costs under whatever denominator, including administrative and handling costs. Providers of loan credits sometimes try to circumvent this permit obligation through constructions.

Measures AFM

The country imposed a fine of a certain amount on offering payday credit without having a license. Government granted loans with a term of less than three months, and advertised that no costs were charged. It was therefore in principle outside the permit requirement. But to qualify for the credit, the consumer had to issue a guarantee. The guarantee could be taken out by consumers against payment at Comfort Guarantee Limited. It subsequently received a generous fee from Comfort Guarantee Limited for the installation of customers. The remuneration received was therefore part of the revenue model. Because of this construction, more than insignificant costs were charged to the consumer.

The AFM goes even further, and is currently preparing a ban on advertising for harmful financial products, including flash credits. The reason for the ban is that certain financial products are offered to consumers on a large scale and in an aggressive manner. Particularly vulnerable consumers in financial distress are tempted by providers of cash loans to quickly borrow money. Should the ban on advertising take place, the ban will also apply to providers who offer products on a Singapore passport in the country.

Finally

It is clear that the AFM is monitoring the market for flash credits. In addition to regular supervision, the AFM now also intends to introduce an advertising ban on these products. If you would like to know more about this subject or about financing in general, please feel free to contact the Banking & Finance section of Singapore.

Entrepreneurs in this city-state are abundant. Many of them do business not in Singapore, but in other countries of the region.  A classic example is the placing of orders at enterprises of mainland China and the subsequent sale of products around the world. Implement such a strategy allows an exceptionally well-developed banking system in Singapore and the availability of credit.

即日融資

Loans are absolutely affordable for businesses that have a business project either in Singapore or in other countries. You, often, are faced with the question of whether it is possible to obtain a loan from a Singapore bank for a project related to the construction, for example, of a hotel in outer country. Unfortunately, the answer is no.

However, you can get financing for the construction of a hotel in Thailand, in Malaysia, the risks that banks can assess. Singapore banks are happy to credit the trade project and trading activities. That is, if your company is in Singapore, you have a real opportunity to finance your trading operations at rates of 2-3, 3.5%. But there is another way for companies based on other countries to get access to cheap loans – to work with the Singapore branch of one of the major international banks.

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