The economy is constantly fluctuating, which only means it is important that you have a reliable sense of income to keep you afloat in times of tough financial crises. This is the reason why it makes perfect sense to think of engaging in a solid business that is sure to bring in some cash for you. If you are not eager about being in that 9 to 5 job longer, and you want to be in control of your schedule, then managing a business is one way to make these things happen. But everyone knows that it takes some cash to get a business up and running. If money is a little tight, does it mean you have to start consulting licensed money lenders in Singapore for your business funds? With different loan products and services that money lenders Singapore citizens and PRs recommend for those who are in search of additional funds for their business capital, it can get quite tempting to join the bandwagon and take out some loan.
Fortunately, there are other ways for you to have some cash to take your business off the ground without taking out a personal loan Singapore banks and moneylenders offer. The following suggestions may be worth looking into when you want to start that business even with a limited fund to back you up.
1. Crowdfunding
More and more people are discovering the benefits of crowdfunding when it comes to turning their dreams of starting a business into a reality. Back then, a sure way to get funds is by approaching investors who may be willing to provide thousands of dollars to business enthusiasts, yet that would make it tough for you to pay back in the future. But what crowdfunding does is to allow you to obtain money through the public who are willing to give small contributions. Over time, you can raise just an adequate amount of cash for a business venture you are planning to start.
For instance, you need some funds to introduce a product idea, but obtaining financial support from capitalists is not even in your radar. Through crowdfunding, you can eventually collect the necessary amount to get started while spreading the word about your new product on an international scale – way before the official launching of your business. Receiving feedback and recommendations from the masses can also become a practical way to gauge whether your idea will click to your target market.
All you can do is to make a simple online search on crowdfunding sites including Kickstarter and Indiegogo, which feature their specific terms and conditions. Also, keep in mind that some sites accept business project creators only from certain countries. Unfortunately, Singapore is not in their list. But if your business partner is from an eligible country, then you can still proceed with your idea.
2. Grants
In Singapore, the government supports SMEs and even provide the necessary funds needed by project creators who are looking to get their business started. The Enterprise Singapore, which is a government agency that offers the ACE grant, is suitable for entrepreneurs who are new to setting up a business. The agency matches the $7 to every single $3 that the entrepreneur has raised for a maximum amount of $50,000.
Thus, you will have to raise a total cash of at least $21,429 to receive a $50,000 grant. What’s more, the agency will not collect equity in your business. The grant will also be provided over 2 to 3 trenches, once you have reached your projected milestones. A mentor will also be given to you who can give the support you need during the initial year of starting the business.
Other local grants are available for first-time business persons in Singapore, and this depends on the industry or sector that your startup belongs. The Spring Singapore is intended for providing more funding plans for high-tech and clean companies while the ComCare enterprise is for social enterprises in the country. With some research on the different grants offered in Singapore, you should be able to find an effective funding source for your startup.
3. Incubator or Accelerator
You may also want to think about getting yourself into a business accelerator or incubator for your dreams of opening a startup in Singapore. To give you an idea about these sources of funding for a business, an incubator starts with a firm that is already in the initial stage of its development process. There is also no set schedule for you to follow when it comes with an incubator. With an accelerator, however, you will have to spend months or just weeks working closely with a mentor before you can graduate.
It is important to note that there is a limited number of programs offering seed funding. One of these is the Angels Gate Advisory, which may be a viable option to consider when you want to get your business set up. But what is good about participating in an accelerator or incubator is the support you can receive along the way. You can even obtain some resources to take your startup to the next level. Most importantly, there is the mentorship that successful entrepreneurs can give you, which is indispensable for any startup that is just entering the world of business for the first time. Tech companies can select from a number of accelerators and incubators in Singapore. Conducting research on these can help you select the right option for your needs.
4. Business Loan
If you have a well-off family member or friend who may be willing to offer some money to help you with your business idea, then it is definitely great to push through your career goals. But the problem is, the amount of money they may offer is not enough for your startup. This is why a bank loan may come in handy for this situation, so you do not have to abandon completely your dreams of owning a business. Plus, if you are not too eager about giving equity, and you want to have total control over the business, applying for a bank loan is a reasonable way to go.
The UOB offers the SME Business Loan, which is collateral-free and designed particularly for startups. If you have a company that is just new in the industry, or at least 6 months old in the business, you can have an expedited access to funds up to $100,000. You will have to nominate a guarantor, though, to qualify for the loan. This is why carefully studying your options is important, even more so when you are not expecting massive revenues too quickly in the short to the medium term.
Other startups rely on a personal for extra cash to fund their startup. But just be cautious when you do the search for a lender because the interest rates may be too high for you to handle. The income requirement also varies from one bank to another, which means you need to meet their qualifications before you can apply for a loan. CashOne from Standard Chartered is geared towards low-income clients, which may be a good choice for you. There are other banks with reasonable policies that are also great for you to look at.
Now that you know more about the different funding options, it is clear to you now that pursuing your dream business is not at all impossible to do. Just be sure to do your homework and compare the rates and policies offered by the different banks, or look at the best funding option that works for you to pursue your goals of managing your own business in Singapore. With perseverance, determination, and research skills, you can discover a surefire way to fund your project without taking out a huge chunk of money from the bank. Then, all you need to do is to continue doing the work as you market and grow your business in years to come.
