You can’t talk matters business without the subject of capital. Capital is the main ingredient for any business to grow. Without sufficient finance, many businesses, especially the startups tend to go down as first as they begun. According to business research experts, the main reason for this is lack of enough funding. Because that, owners go an extra mile to ensure they secure enough capital for their startups in order to keep them afloat. Some tips on how to raise capital for your startup business include;
How to raise capital for your startup business
Self-financing is the easiest option to raise funds for your business. There are many ways you can go about it including;
- Accumulate personal savings – you can tap your savings within a period of time either from a job, family inheritance or your passive income ventures.
- Side-hustle –Engaging in little ventures such as hiring your car, freelancing etc. can help you raise the desired capital. It may not necessarily earn you enough right away but over time accumulate figure will go a long way in funding your business.
- Sell assets – You can choose to do away with some of your assets like selling your personal car, property, home appliances etc. When the business begins to thrive, buy back new ones.
- Credit cards – You can fund your new business instantly through a business credit card. This is easy provided you fulfill the minimum payment obligation.
- Friends and family- obtaining funds from family or friends is both convenient and cheap because should they demand that you refund the cash, terms and conditions are favorable e.g. 0% interest or refunding is at your convenient time.
Angel investment is the funds obtained from a group of individuals with large amounts of capital willing to invest it on great business ideas. This solely depends on your business proposal; they can only trust you with their money if they think your business proposal in promising.
Banking institutions are always willing to offer financial backing in form of loans to business people who make their applications that contain solid business plans. In other words it should be convincing enough, well-structured with realistic financial projections.
This is done through engaging in business competitions whereby entrepreneurs showcase their business proposals against fellow competitors seeking for the same funding in order to run their businesses. For you to win the contest, your business plan should stand out from among the rest of the contestants.
Peer-to-peer loans (P2P)
As the name describes, P2P loans are acquired easily without necessarily going through an investment firm or local bank. There are several P2P platforms that exist online. All you need to do is sign up then post a loan request stating the reason for the it and the amount you need. Potential investors review your application to see whether you qualify for the loan based on your financial information as well as your credit score. Once your request is approved, the money is lent to you with their terms and conditions applying. The greatest advantage of peer-to-peer loans is that interest rates are reasonably low.
Licensed Money lender in Bugis, Singapore – Singa Credit Pte Ltd
Established in 1992 and previously known as Yong Seng Credit,
Singa Credit Pte Ltd is Legal Money lender in Singapore regularly updated with the latest regulations to be in line with the requirements set out by Registry of Moneylenders.
Please feel free to call 66946166 for more info on our lowest interest rate in Singapore or walk in our office 470 North Bridge Road #02-01 Bugis Cube Singapore 188735.