Business finance is a difficult and time-consuming field. We make it easier for you to manage. We will listen to your demands and provide complete finance options for you, whether you are a small business or a huge corporation.
Listed below are some possible sources of funding for Singapore startups.
1) Equity Fundraising
The Singapore private equity financing environment is becoming more strong these days, thanks to the government’s active encouragement of private investors to engage in the country’s start-ups through a variety of tax advantages, making Singapore one of the most appealing marketplaces for private equity and venture capital operations. If you want to fund your startup by selling equity in your firm, you sell a portion of your company’s ownership (in the form of shares) in exchange for a cash investment. Starting a business using private equity may be a great way to get money, especially if you don’t have a lot of collateral or creditworthiness to rely on for significant loans for working capital.
2) Private Funds
Entrepreneurs should explore private funds such as banks, financial organisations, and investment corporations when seeking finance for their company. These sources of finance are rarely involved in active management of the business (thus allowing you the liberty to run your own operations in the manner you think best), since their primary goal is to get an attractive return (typically in the form of high interest rates ranging from 7 to 12%) on their investment. As a result, firms that are already established, have a strong credit history, are already earning large quantities of income, and have a high growth potential would profit from such sources, rather than start-ups in the early stages of development. But in Singapore, the government has set up micro-loan programmes called Spring Singapore and IE Singapore that make it easier for you to obtain small company loans from participating financial institutions including UOB, OCBC, DBS and Standard Chartered banks that participate in the programmes.
3) Venture Capitalism
If they invest in your firm, venture capitalists will have a more hands-on involvement in it, and they will generally do it with their own clients’ profitability in mind. Venture capitalists provide not just money but also advise on boosting your company’s profitability and, in certain cases, operational issues, particularly if your company requires input from many areas of expertise. Even though Singapore’s venture capital business is relatively new and tiny in comparison to the US and Europe, there are really more than 100 venture capital companies in Singapore, ranging from independent limited partnership risk capital firms to corporate-backed risk capital firms. Furthermore, because of the favourable tax advantages and other advantageous government regulations, it is usual for Singapore government agencies, major businesses, and high net worth individuals to establish venture capital firms in Singapore.