Funding your Business in Singapore
Funding your Business in Singapore
Funding Your Business
You have a number of options when it comes to financing your business. It is essential to choose the right ones for your needs.
Personal Savings
Start-ups are most commonly funded by the owners and founders of the business – this is the simplest approach and allows you the greatest control over your business.
However, it may be several months or more before you can earn an income for yourself so ensure your personal finances are in order and only use excess funds to invest in your business.
Loans From Family & Friends
Get financing on more flexible terms than those offered by a bank, while your family and friends earn interest on their spare cash while helping you to achieve your dream.
Venture Capital
If you have little assets to put up as collateral for loans, you can consider selling a portion of your business shares in exchange for cash.
1) Equity Financing
Equity financing raises funds by selling a portion of your business to investors. In exchange for the funds, they take a share in your business and profits.
This is a good option for start-ups that have little assets to put up as collateral for loans. Equity funding is however, only suitable for partnerships and companies.
Which Type Of Investor Should I Approach?
The type of investor you need will largely depend on the stage of your business. Start-ups will have better success with angel investors. Businesses with proven growth potential may find venture capitalists more willing to listen. Take the time to understand and choose your target investor, as well as how to pitch your idea/business so they will invest in your business.
2) Financing through an investor
There are 3 main types of investors – angel investors, venture capitalists and private equity funds.
Which one you choose will depend on how much money you’re looking for, the stage and type of your business and how much control you’re willing to give up.
Having a good investor can add value to your business by providing expertise, contacts and management advice.
Take the time to understand your target investor and conduct as much due diligence (e.g. investment strategy, risk profile, professional experience, etc.) on him as he would on you.
Keep in mind that investors are not philanthropists. Prepare a simple but clear pitch for your idea/business. Startups that catch investors’ attention typically show a clear understanding of:
Loans From Banks
Banks are generally risk-averse and new businesses without track records are considered high-risk. Getting a loan requires careful pre-planning and preparation as well as a solid business plan if you want to increase your chances of securing a loan.
Government Assistance
There are various business assistance schemes to help you gain access to loans, equity financing, grants and incentives.
Let us know your business or Contact us for more information in assisting you to secure investors' financing and government assistance.
You have a number of options when it comes to financing your business. It is essential to choose the right ones for your needs.
Personal Savings
Start-ups are most commonly funded by the owners and founders of the business – this is the simplest approach and allows you the greatest control over your business.
However, it may be several months or more before you can earn an income for yourself so ensure your personal finances are in order and only use excess funds to invest in your business.
Loans From Family & Friends
Get financing on more flexible terms than those offered by a bank, while your family and friends earn interest on their spare cash while helping you to achieve your dream.
Venture Capital
If you have little assets to put up as collateral for loans, you can consider selling a portion of your business shares in exchange for cash.
1) Equity Financing
Equity financing raises funds by selling a portion of your business to investors. In exchange for the funds, they take a share in your business and profits.
This is a good option for start-ups that have little assets to put up as collateral for loans. Equity funding is however, only suitable for partnerships and companies.
Which Type Of Investor Should I Approach?
The type of investor you need will largely depend on the stage of your business. Start-ups will have better success with angel investors. Businesses with proven growth potential may find venture capitalists more willing to listen. Take the time to understand and choose your target investor, as well as how to pitch your idea/business so they will invest in your business.
2) Financing through an investor
There are 3 main types of investors – angel investors, venture capitalists and private equity funds.
Which one you choose will depend on how much money you’re looking for, the stage and type of your business and how much control you’re willing to give up.
Having a good investor can add value to your business by providing expertise, contacts and management advice.
Take the time to understand your target investor and conduct as much due diligence (e.g. investment strategy, risk profile, professional experience, etc.) on him as he would on you.
Keep in mind that investors are not philanthropists. Prepare a simple but clear pitch for your idea/business. Startups that catch investors’ attention typically show a clear understanding of:
- the market they are competing in
- how their product/service addresses an existing need or can be differentiated from the crowd
- a good business model
- risk/profitability assessment and finances
Loans From Banks
Banks are generally risk-averse and new businesses without track records are considered high-risk. Getting a loan requires careful pre-planning and preparation as well as a solid business plan if you want to increase your chances of securing a loan.
Government Assistance
There are various business assistance schemes to help you gain access to loans, equity financing, grants and incentives.
Let us know your business or Contact us for more information in assisting you to secure investors' financing and government assistance.
