Okay lah, we know Singapore feels like a big QR code sometimes, especially in the last few years. It has gone digital – paying with a tap of your card or phone is so easy nowadays. And it will continue to do so!
But what if something unexpected happens where you need the old traditional cash but you don’t qualify for traditional loans? Money-involved emergencies happen even with fancy payment technology, and that’s where licensed money lenders come into play in this cashless Singapore.
Who Uses Money Lenders?
You may have had some “Need quick cash, where to turn?” moments in the past, but these days who doesn’t? Contrary to popular belief, money lenders are not just for troublemakers.
These financial institutions also cater to small business owners, folks with imperfect credit, and most often those facing sudden expenses. It’s also for your neighborhood auntie whose bakery oven went kaput, the guy with not-so-great credit but a solid business idea… things happen!
For instance, if you’re a local coffee shop owner who is looking to upgrade your old espresso machine, a loan from an instant money lender may prove helpful. With their help, you can now serve better cups of coffee for your loyal customers – definitely a financial win!
See, it’s not always about bad habits, it’s about life being unpredictable.
What Makes Them Different
What makes licensed money lenders so different from traditional banks are their speed and flexibility. These are their best selling points! They can make quick decisions and they give less focus on perfect records, which works for those with less stellar credit scores.
However the emphasis is on “licensed” money lenders because while they are more convenient, they still put a premium on responsible borrowing.
Money Lenders in a Cashless World
You’d think all moneylenders do is hand out stacks of cash, but nope! Many money lenders offer digital transfers these days to stay relevant. This is particularly essential in helping fill the gaps in the system.
That is, serving those underserved by the digital-first approach because let’s face it, not everyone has already caught up with the recent changes.
The Smart Side of Money lenders
But of course, this does not mean that you immediately go online and look for potential money lenders. Remember, as much as possible, loans are for specific, short-term needs only – those specific “oh crap!” moments, not a lifestyle change.
But just in case you really need to cash in through them, know those interest rates, only borrow the bare minimum you need to fix the problem and have a repayment plan before you take the loan.
Conclusion
In a nutshell, money lenders are a safety net in Singapore, especially if you fall outside the perfect banking customer mold. A cashless world doesn’t change that.
The point is to use them wisely! Maybe the future is figuring out how the techy finance world and moneylenders can work together to give everyone the right options when they need them.
What do you think? Surprised about the role moneylenders still play?
