It happens to so many people. They have a great idea for a startup business, but cannot get any further than the loan process.
The fear of getting a business loan in Singapore is arguably an understandable one since the sheer number of forms and paperwork can be quite daunting.
Whether you choose a traditional bank, SME loans or a Singapore licensed money lender the work to get the money needed for your startup business can be quite challenging.
However, you should consider that there are more ways to get the money you need without having to jump through too many hoops. What follows are four ways you can raise money for your startup business.
This method has been around for many years, but it is surprising just how many startup business owners overlook the value of grants. For example, the Singapore ACE grant is designed for first time business owners where the government will match S$7 for every S$3 raised by the business owner up to S$50,000. The good news is that Spring Singapore, the government agency backing this particular grant, will not take any interest in your company if it gets off the ground. Remember, there are many different local grants that you may be eligible for if you only take the time to look.
Arguably one of the biggest phenomenons of the past decade, crowdfunding is a relatively simple method of raising money for your business on a public platform. Basically, instead of trying to get money from a few big investors, you get a little money each from a lot of investors. There are a number of crowdfunding websites out there which help do the work for you, so all you need is startup business that offers something that generates real interest.
Accelerators and Incubators
Getting one of these for seed funding will help you generate more of the capital needed to startup your business. Although similar in nature, an accelerator has a timeframe that takes several weeks or months learning from mentors before you graduate while an incubator starts at an earlier stage and has no set schedule. You can chose either one as a means to get your company going, but be advised that it might take longer to get off the ground using either of these two methods as compared to crowdfunding, grants or loans.
The traditional means of starting up a business means you may borrow money from family, friends, lenders or banks. Obviously, the more money you need, the more likely you’ll apply for a business loan in Singapore or perhaps try for SME loans or maybe consulting with a bank or a Singapore licensed money lender.
The good news is that there are lending companies that offer a considerable amount of money available if you follow the rules. In some cases you may need a guarantor of the loan which may be problematic if you need a considerable amount of money. However, personal loans may help you get off the ground with little in the way of paperwork.
In the end, you’ll need to explore all the options available before making your choice as to which method you will use to get your business going.