How does the economy affect Singapore Mortgage Loan Rates?

How does the economy affect Singapore Mortgage Loan Rates?

How does the economy affect Singapore Mortgage Loan Rates? – There are many reasons that will affect the rates of a mortgage loan. This is quite similar across the world and even more so for a financial hub and capital like Singapore. Singapore is a very open economy and relies a lot on trading and exports for the income of the nation.

The economy is affected strongly by the use of a few economic tools and the main one is the interest rates of the banks that is set forth by the central bank of the country, Monetary Authority of Singapore. When the economy is not doing very well, the central bank will usually lower interest rates to encourage borrowing. When businesses borrow, they will invest it into the economy and pay more salaries that will push up the economic activity, people who save will also be more interested in placing money elsewhere because of low interest rates.

Due to Covid-19, we have seen the USA through its Federal Reserves lower its interest rates. With this the Monetary Authority of Singapore followed suit and also started to lower its rates. With the economy is such bad shape at this current moment, there is a high demand for loans and to ensure businesses can survive this period of downturn, we expect to see the interest rates to get even lower or maintain at such low rates.

So how does this affect Singapore Mortgage Loan rates?

When there is a lower interest rate across the board for most of the economy, the interbank loan rates will also fall. Interbank loan rates are what the banks will charge each other for loaning money between them. This will allow the banks to give out loans when they are able to inject money through loaning into the system.

With this the loan rates will fall and with it the interest that a borrower will need to pay when they are trying to buy a new home or they are trying to refinance a Mortgage.

Singapore Mortgage Loan rates are currently at a very low rate hovering just slightly above 1% for most parts and with the fixed rates at about 1.5% they have never been this low for a long time.

Singapore economy is likely to slide and we will see a tougher period during this few months to a year.

If you are looking for a new home loan broker in Singapore, or Singapore Mortgage Refinancing you can talk to our partners at Avant Mortgage, they are experienced and able to give you a good idea for your property, what you can go for to help you to save money overall.


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We work closely to assist our customers and friends with the best services in Singapore and partner many high quality service providers to give our clients the best options they can have in Singapore. Find experienced and affordable accounting services in Singapore through us today.

Getting a good tax advisor to assist your start up with tax planning

Getting a good tax advisor to assist your start up with tax planningTax planning sounds like something that big businesses do and also for those who are making big bucks around the world. There are many ways that an individual or a business can save on taxes and also get good tax advice from someone who knows taxes is also a good thing don’t you think?

Learning how to run a business with legal means of reducing your tax outlay is one of the best ways to help you to save on income taxes that can actually be used to power the growth of your business and also to help you to spend more on marketing and also for you to have more cash flow in case things like Covid-19 situation happens.

Running a business is about making more profits. Profits are hard to find during the budding years of a business. Most business function from a situation where you need to build your brand and also marketing for the first few years before you start to see results and results only come after a few years. The first few cherished years are usually barely surviving years.

So the most important step of preparing for a money making venture is to prepare when you are not making much money and also the budding years. Everything about tax planning is about having a good planning phase. Planning a good business structure will ensure that you have lesser tax burden when the time comes. Business is run with this intend of making sure the overall tax burden between shareholders and the business is at the lowest and that is the way where most businesses need to plan for.

A good tax advisor will only guide you through the whole process and ensure that you will always be making the least commitments in the long term within the legal frameworks.

If you need help with SME Bank Loan, speak to us as well.

Work closely with us if you are keen on working this out for your business. Speak to us now!

Getting a good tax advisor to assist your start up with tax planning

Rethinking your business post lockdown and covid-19

Rethinking your business post lockdown and covid-19 – There are many things that businesses owners will need to be prepared for after this covid-19 lockdown that has been going on around the world. Businesses around the world especially small businesses are suffering tough periods of no sales to very minimal sales figures, especially those that are in the frontline. Retail businesses, Tourism and also Events are burning up as we speak and we will not see the same again after this whole lockdown is done.

Many businesses that are already suffering will fall off the cliff and for those that are barely holding on might still have some lifeline but might end up the same way as the rest. Most businesses that had preparation to go online will still see their businesses slightly hit. Not as much but it is a definitely that they will also be suffering as the economy starts to reboot.

Some of the few things that most businesses should rethink about is their post pandemic response. Will they be able to move certain parts of their businesses to the cloud?

Either to save cost, or to be prepared for another pandemic.

One business should also wonder if they should fully deploy all their cash into investments or to have reserves for situations like right now, where businesses are going under because they do not have enough reserves in place for closing of public places due to this pandemic.

Some businesses did not prepare for online access for businesses and end up having to scrambling for it.

Some businesses that relied heavily on retail had no means of even surviving a little without E-Commerce. If they had E-Commerce, they could have went through the online route to keep businesses going and to make income even though lesser but not completely hit.

Businesses that have never taken a bank loan, could also consider having some on standby when such things hit, when such businesses suffer a sudden cut in revenue and need some cash flow to pull through, they will expect to take up a small SME Loan to cover for the rental and also salary, allowing time for the business to get back online.

If your business has been highly reliant on a single location for employment, maybe you can consider working to split part of your business overseas. Outsource the parts where you know you don’t’ need a Singaporean to cover, for example a call centre or a production line that can be shifted to a neighbouring country that cost lesser to operate from.

Accounting Services need not be done at your exact location too, you could outsource it to cloud based bookkeeping services like us.

Change is the only constant. Those who do not change will suffer long term consequences.

Rethinking your business post lockdown and covid-19

Why you should consider refinancing your Singapore Mortgage Loans now

Why you should consider refinancing your Singapore Mortgage Loans now – There are many things you should watch out during a downturn and a recession. Most of the time recession causes job losses and therefore a drastic fall in income. When this happens, people spends less which triggers an even deeper recession.

Why you should consider refinancing your Singapore Mortgage Loans now

One of the good things that do happen during such a situation is when government wants to promote the flow of cash and money in the financial system, they will low interest rates. Interest rates that are lowered will mean people borrowing more to buy things and also to invest into their businesses. This means that more money will end up flowing and keeping the economic system from tanking.

When interest rates fall, the banks will follow suit to reduce their interest rates across board. Which means your savings will actually get lesser interest and also at the same time the loaning rates will also fall.

In a good economy, rates for mortgage loans in Singapore can be around 2.x% and this is quite common in a good economy. Now with the rates of the loans going for 1.7x% for some banks, you can expect the mortgage economy to be quite low for a period of time.

For most residential property owners, they will choose to refinance their mortgages so that they can save on interest rates. This is because mortgage loans in Singapore will increase after their lock in period of 2 or 3 years and this is something that is very common across Singapore and the rest of the world.

For our clients that work closely with us, they will know that we strongly recommend Avant Mortgage as their Mortgage Refinancing Singapore advisory and also for those who require help with Mortgage Advisory Singapore, you can also speak to them.

We are keen to assist you with your Xero Accounting Services needs.

Why you should consider refinancing your Singapore Mortgage Loans now

How cloud based accounting services can help you during this pandemic

How cloud based accounting services can help you during this pandemic – The one good thing about any services or product that is cloud base is the fact that you can get work done anywhere and from all over the world.

Cloud Based Accounting software Xero is the primary software that K Cloud Accounting Pte Ltd uses to serve our Singapore Bookkeeping Services clients. We use this cloud based accounting software because this software is not just an easy to use software, you can also issue you quotations and invoices from anywhere you are, at anytime.

This is one of the main reasons why we like to recommend this software to our customers.

Cloud Based Accounting Services allow us to maintain your books without having to deal with physical documents that you usually have to handover to your accountants. Payment to us are also done virtually so you do not have to come by our office or even have an internet banking dongle to get things done.

This pandemic has been causing a lot of havoc to the public health system of the world and has slowed down the world economy. The world economy now is experiencing supply and demand shocks from the lockdowns and also subsequent oil price shock.

Most lock downs have also caused businesses to go into a halt because there is just no way for businesses to function without having a presence in the office or at a physical workplace.

We work closely with our startup and SME customers to ensure the accounting services provided for them are done with the highest quality and also at the same time done on time so that the submissions are done on time for the submission to government and also for management purposes and allow for fast decision making for stakeholders.

K Cloud Accounting is keen to work with you on delivering on your startup bookkeeping services. If you require help with Singapore Bank Loans, you can contact our partners too.

How cloud based accounting services can help you during this pandemic

Why you should get a good mobile application developer in Singapore

Why you should get a good mobile application developer in Singapore

Why you should get a good mobile application developer in Singapore – There are many reasons why you should get a good mobile developer in Singapore to help you with your mobile development in Singapore.

Mobile phones are very popular in this time and age, with many people owning not only one or two of the most popular mobile phones in the world. There are way more mobiles than there are humans now in this world and if you are a good mobile application developer, you definitely will be able to get good jobs.

When you are a company and building a good mobile application for your business needs, it not only helps you to expand into a market that is big and able to access into more features that the normal website will not be able to do.

Mobile applications can use many features to help you save time and effort, make payments and also track where you are and what you need to do. Pop ups can help you to get task reminded and done and many more things that a website may not be able to do but a mobile application can.

A good mobile application developer Singapore can help you to ensure that the user enjoys the application and the ios mobile application developer or android mobile application development can make sure that you have a good mobile application on both main operating systems. Having it on both operating system means you got most of the users in the world covered and this means you will have a strong base.

A good developer also means that you will get your application approved much faster than if you have someone who is not familiar with the rules and regulations of the major players in this mobile application game.

If you require a good developer, speak to Originally Us Mobile Application Agency.

K Cloud Accounting is a Singapore Accounting Services firm.

Why you should get a good mobile application developer in Singapore

Singapore economy heading towards recession

Singapore economy heading towards recession – Singapore is heading toward a major slowdown and recession in the coming months. Singapore is a major financial hub of the world with it being the main financial hub for businesses in the Southeast Asia region.

Southeast Asia is quite badly hit by the Covid-19 outbreak and being in the region also means that with the slowdown in China and also the USA, trade will lessen. Trade is one of the main lifeblood for Singapore and companies in Singapore. Singapore is a major port in the region and this is also one of the things that will be greatly affected in the case of a recession.

Singapore is heading clearly towards a recession and heading there fast.

The Singapore government is coming up with a series of schemes to keep the economy going and also will be releasing more details on how to keep the economy going on with the slowdown in tourism, retail and eventually all parts of the economy.

One of the earlier schemes announced during the budget is the increase in working capital loan quantum from $300,000 to $600,000 and the government increasing its risk share from 50% to 80%. This is one of the few items that will definitely help to ease up the load on the SMEs in Singapore.

But with prolonged slowdown expected to reach all the corners of the economy, we are hoping that there will be more that the government will be able to do to help the economy to reboot and also cushion the fall.

Singaporeans will likely have to keep their pockets tighten and this will eventually lead to a general slowdown of the entire economy.


K Cloud Accounting works closely with Avant Consulting, our SME Bank Loan Broker in Singapore that focuses on corporate loans in Singapore.

If you require help with Singapore business loans, you can contact them.

Singapore economy heading towards recession

Should SMEs in Singapore take up bank loans to assist in their business

Should SMEs in Singapore take up bank loans to assist in their business – There’s an old saying that business or people should avoid debt as much as possible. For the older generation, debt seems to be something comparable to gambling, something that is bad, something that should be avoided.

Should SMEs in Singapore take up bank loans to assist in their business

Loans & debt has been around for many years ever since the start of the financial system. And it has been a vital part of the explosive growth of many western countries that have been using debt to do more business and grow at extraordinary rates that has never been seen before.

SMEs in Singapore has been slowly warming up to the idea of taking bank loans to finance the purchase of assets and also for business expansion and with this the recent years we have seen a higher take up rate of loans in Singapore.

Singapore SME loans are not exactly the easiest to get but the government has been very supportive to startups in the past with Micro Loans and for the SMEs with the Working Capital Loans. For those company that need more than what the Working Capital Loan can offer, they could also get a higher interest rate Term loan from the banks themselves.

Loans are not only given out by Banks, loans can also be given by financial institutions that work closely with businesses to provide loans.

With the recent increase in difficulty in doing business due to the new Covid-19 Outbreak that has caused the tourism and retail sector to slow down, we believe the government will be providing higher quantum of loans and also easier criteria to help business get pass this tough business climate.

So if you are a SME owner, why should you take up bank loans to run your business you may ask.

Businesses that require a bank loan will definitely benefit from the additional cash flow you have from taking up a loan for expansion. Investment into assets or into marketing will come back with returns that will help you speed up your business growth a little. This is one thing that most people do not realize that the risk of taking a loan and repaying the loan will be outweigh by the growth you get from investment into items and services that will definitely help you to increase in revenue.

For those who are going through cash flow short fall, you will also be able to survive the tough winter periods in business and come back up stronger if you were to tap on loans that are available to you and your businesses.

You should never treat loans as something scary but something that can be of extra help to you especially if you are just starting off in this business.

  1. Working Capital LoansWorking Capital Loans are supported by the Singapore Government to reduce the risk of banks loaning out to SMEs by 50%, this allows the banks to have a must easier criteria on lending and encourages more cash flow circulation in the market through the loans given out to businesses to carry out more business.

    With the recent outbreak of Covid-19, the government will be increasing its loan quantum for Working Capital Loans and also at the same time will be working closely with the few sectors that are suffering direct hit from this outbreak, such as retail and tourism and will have a more targeted bridging loan support for them.

  2. Business Term LoansBusiness Term Loans are given out by the banks through their own internal funds, not supported by the government. Banks will offer term loans at effective interest rates usually around 7-8% and this allows businesses to use it for expansion and cash flow purposes.
  3. Mortgage LoansIf you are renting, you should consider buying up your units with Mortgage Loans that will definitely allow you to build up networth through owning assets that you can use for long term purposes and also for investment usage.

    Get your Loans refinanced as well after the lock in period to ensure that your fees are at the lowest so as to enjoy the best rates every time.

  4. Equity FinancingDo you own a property and will like to receive a loan by using it as security. Equity loans are one of the best ways to get low interest loans for your business needs.

If you require some help from a loan broker in Singapore for your Singapore SME Working Capital Loans, we work closely with Avant Consulting Pte Ltd to assist in our customers getting the best rates and also fees. We also assist in making sure we have compared across the board to give you the best choice you have.

Mortgage and property loans and mortgage refinancing in Singapore is also one of the things this loan brokers do for you and your business.


K Cloud Accounting works closely to provide high quality services for our customers and also our friends. We will be glad to give you advice if you require help in any.

K Cloud Accounting is the leading Xero Accounting Services firm in Singapore assisting our clients in acquiring the best accounting advice and also accounting work for your needs for government reporting and also management decision making. We work monthly to ensure all work are up to date and ready to be used by management every month.

 

Should SMEs in Singapore take up bank loans to assist in their business

How a mobile application may be what your business needs

How a mobile application may be what your business needs – Mobile Applications are the next step for many businesses. There are some features that cannot be done from a website and only from a mobile application that is done by reputable Top IOS or Android Mobile application developers in Singapore. So what are some of the things that will make a difference when it comes to having a mobile application for your business. For things such as ride sharing services or food delivery services, having a well written code for your mobile application is what makes a big differences in getting your services out to the world. Websites have limitations, websites usually are great for social networking and maybe some of the more informative things but when it comes to having an application that is on your mobile, it really does improve the overall experience of your business usage.

If you are a multinational corporation looking to build up a stronger engagement with your customer base, you will be glad to have a mobile application where you can get in touch with your customers through the application because you can push information to the app users if they allow it. When your user allows the pushing of information, you could probably get in touch with them on some deadline related matters, this kind of engagement cannot be achieved by just emails or phone calls but through application and also together with the integration of payment can help you save on man hours and also helps you to improve receivables. This is very important for business because this saves the business a lot of time and money and this will help to improve the business processes of this businesses.

Getting your mobile application development in Singapore done well might not be that easy. There are many mobile development agencies in Singapore that says that they are able to deliver high quality application coding work but not many are truly able to do that. There are select few that write good code and have good customer service to come wiht it and we are glad that we are working closely with companies like Originally Us, our friends and partners to help our customers to deliver high quality development of mobile applications.

The delivery of high quality application is important because it is not the fact of having an app that will help your business and business processes but also the fact of having an application that has good user experience and user interaction flows. Keeping the client satisfied with good flow of workflow and also with a fast app that does not lag when you submit things is very important. If it is slow and hard to use, customers will leave and not use it anymore.

This is one thing that we at K Cloud Accounting will like to share with the world and also our partners that mobile applications development can help you whether you are a MNC or SME in Singapore. If you require some help with it, contact us to find out more!

Best Accounting tips for Startup businesses in Singapore

Best Accounting tips for Startup businesses in Singapore – Startups are great for a young person who wishes to change the world and create something that will not only build wealth for the founders but also change the world as it is.

The startup culture of recent years have helped to push innovation around the world and speed up the changes that humanity wants to see in its inventions and also changes and improvements in processes and consumer needs across the board.

The startup culture has also seen some of its downfall and slowdowns with the recent WeWork saga seeing funded startups running on so much money that it is burning without even properly turning a profit.

As a professional firm providing accounting services, we will like to share with you some tips on how you as a Singapore startup can improve your accounting work to improve your chances of doing well in the long term in this tough and cut throat world with a new article on “Best Accounting tips for Startup businesses in Singapore”.

Pay close attention to your company expenses

The biggest problem with many startups is the run away spending that many will make when they are trying to grow their business and try to grow them fast. The thing about company expenses is that you think that you know what is happening but actually you don’t. You end up spending way more than you are making and this is going to start causing cash flow issues. If you are a startup that is bootstrapping which means you do not have external funding, you will go under really soon!

This is one thing that most startup founders do not realize that can kill their goals before it barely took off.

 

Make a plan of your company expenses

Budgeting is always a good choice when it comes to working on anything. When you budget, you will at least be paying close attention if you realize you are running way above the budget that you have set forth for yourself at the start of this course of action.

When you know what you are expected to be paying and you are way above it, slow down and make sure it makes sense before you push ahead again. Many business owners especially startups do not budget and end up over spending what they should.

 

Keep your records properly

Have you heard of lost receipts, lost expenses documents, lost invoices and lost cheque stubs. This are all very common things that happen along the way when you are running a business because you are just so busy running the business to handle all this administrative documents.

The fact is, keeping this documents intact and proper is actually very important. When you get audited by the tax agency, you will need to present this documents. You will not know when this is going to happen so which is why keeping accounting records are very important for a business especially a startup that does not have good systems in place.

 


At K Cloud Accounting, we will guide you to set up a good system for your business so that you as a startup founder will need to just focus on your business and leave the rest of the startup accounting work in Singapore to us.

Best Accounting tips for Startup businesses in Singapore

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