Ways to Get Funds | Business Loans in Singapore
Business | business loan | Loans | Singaporeby Priyadarshini 24 May 2023
Do you believe that your brilliant business idea proves that you are a genius? But are only ideas plentiful? You want to start a business of your own but know where to begin. In this blog, we tell you three ways to get funds for your business in Singapore. The reason there are so few successful entrepreneurs is that it is difficult to bring ideas to fruition. The vast majority of people do not follow through on their brilliant ideas. And most people are frequently forced to work themselves to exhaustion or deal with a lack of funds.
Three Ways to Get Funds for your Business in Singapore
Get a Bank Loan
Some people invest their personal savings in their businesses when they first begin. But this is not always feasible. Not everyone wants to wait ten years to start their own business. If you’re willing to put in the effort to make your business a success, a bank loan is the quickest way. You will get the funds you require. And you will be applying for different types of loans as opposed to established businesses. These companies already have a solid track record. And many of them may own property that can be used as collateral for the loans. As a result, banks are more likely to want to lend them money.
As a newcomer, you should look into loans provided by the government. There are many government efforts that encourage entrepreneurship. These loans are intended for SMEs in need of small unsecured loans of up to $300,000. Banks typically avoid lending in such situations because new entrepreneurs have a higher risk. They could default easily as compared to established businesses.
Get Funds from Friends /Family
Before you argue that your friends and family already run the other way when you say the word “money,” keep in mind that drafting a contract to be signed by both borrower and lender is not the same as simply asking for a loan because you “forgot” your wallet. When formally borrowing money from someone and drafting a contract, keep in mind that the person lending you the money may want to strictly define repayment terms. You will need to discuss when you must pay up and how much you pay with each instalment.
Of course, the fact that you’ve written everything down means that the lender can easily take legal action against you. So, just because your primary school friend is lending you money doesn’t mean you can abuse their generosity. Alternatively, you can enlist the help of friends and family to invest in your venture in exchange for a stake in the company. This is a little more complicated than simply borrowing the money. And requires you to share your profits with others, it also means you have less risk if your business fails.
So you’ve come up with a clever little idea that others think is brilliant. However, you don’t want to have to spend too much of your own money to make your ideas a reality. If you’re good at selling your idea, you might want to look into crowdfunding. Essentially, you will be soliciting funds from the general public. It will be either in the form of donations or pre-purchases. You will inform the public about your project and encourage them to fund it by using a site like Kickstarter or Indiegogo.
It’s a fantastic idea for creative projects or new products with a cool factor. If you put in some time and effort into creating a great pitch for your chosen site, you might find that the money starts rolling in. These are three easy ways to get funds for your business in Singapore.
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