Jewellery- A worthwhile investment?
If you love high-end fashion, then you’ll thrive in the jewellery business. Typically, you can choose to run a jewellery store or invest through buying and selling in the gemstones market. However, while this sounds straightforward, many aspiring jewellery sellers get stuck when it comes to funding their jewellery ventures. And this begs the question: Is a licensed moneylender a smart option for seeking starting or working capital? And what are the odds of a jewellery investment yielding returns to pay back a loan? In this article, you’ll find answers to these two important questions and more!
Is a jewellery investment worth the risk?
The answer is a solid YES! Investing in precious stones or jewellery is the best investment you can make. For one, jewellery is timeless, and secondly, its value increases over time. This makes it safe for investors with a low-risk appetite, compared to other volatile markets like stocks. Even amidst the COVID-19 pandemic, the prices of gold and diamond have shot up significantly. Such high-end gems are known to rake in profit margins of between 25-75%.
Secondly, jewellery-focussed businesses are known to kindle and sustain creativity. As a professional jeweller, you’ll have access to different designs that leave you in awe of the creative capability of the human brain. The creativity and profitability aspects are especially true for jewellery brands. If you understand your target audience, market yourself well, and take advantage of wholesale purchases you can be the next business success story.
Speaking of purchases, one downside of a jewellery business is that it requires a massive initial investment. But, this is where a licensed moneylender comes in. If commercial banks or credit lines are not an option for you, you may want to check in with a licensed money lender.
How a private moneylender in Singapore can help fuel your success
Ideally, there are many benefits of approaching a private moneylender in Singapore for financial assistance. For one, these lenders offer a specific type of loan called a business loan. These special loans are catered to help small businesses sail through difficult times, and at an affordable interest rate than bank loans. Also, a non-bank, licensed moneylender requires less paperwork and processes the loans faster. This makes them an ideal option if your business needs the money ASAP.
If you’re unsure of when to apply for a jewellery business loan, here are some circumstances that should be a green light:
- To recuperate after a disaster e.g. fire, hurricane, or a pandemic.
- To acquire a new equipment
- To lease a new physical location
- Manage cash flow and increase employees
Clearly, you might need a business loan at different stages of your business. But, there are a few loose ends you should tie before making the jump. For instance, it’s imperative that you assess the profitability of your business by tracking your sales. Since debt can be risky, you want to be 100% sure that your business can carry extra financial obligations without compromising its growth. Once you’re certain, the next step is to find a suitable private moneylender in Singapore.
Where can you obtain a jewellery business loan in Singapore?
Here’s some good news: Singapore has a wide range of loan providers for SMEs. While banks and credit unions hardly offer microloans for small businesses, you can acquire any amount with a private lender.
With that said, the first place you should go is the Ministry of Law’s website. Here, you’ll find a comprehensive list of licensed moneylenders who are mandated by the government to provide loans at a rate not exceeding 4% per month. Going this route helps you ward off loan sharks who’ve perfected the art of impersonating legal lenders.
Once at the site, the next step is to list licensed moneylenders in Singapore that spark your interest. Next, visit the lender’s website to have a glimpse of the different categories of loans they offer. Also, get as much information about their terms. For instance, what credit score will you need? Do they offer secured or unsecured loans? What are the rates for micro-loans (less than $50,000)?
What else will the lender require from you?
Essentially, be ready to break down your business model in a simple and precise fashion. For instance, do you operate a physical jewellery studio, or are your sales based strictly online? Also, you better understand your target customers like the back of your hand.
Having your pitch prepared upfront seals your credibility as a business person and boosts the lender’s confidence in lending you money. It also allows the contact person to chime in with helpful financial tips that will help you down the road. While at the lender’s office, you’ll be required to submit certain business documents. The basic ones are a business plan and financial statements for the previous financial year. If you don’t have your financial paperwork in order, it’s best to get an accountant or bookkeeper to help.
However, if you intend to apply for a personal loan and invest in the jewellery market, you won’t require all these. Simply bring your identity verification documents and proof of income.
As you can see, a jewellery business is worth a try. We have websites online that list licensed moneylenders in Singapore. These will be a great resource for acquiring personal or business loans to finance your interests in the jewellery market.