Allow us look at some of the recent news headlines regarding small Business Loan Singapore companies:
- “Why Aren’t Banks Lending to Small Business? Ask He. ” – The American.
- “Are the Big Banks Retaining Their Commitment to Small Businesses? ” – The Wsj.
- “Banks keep lending standards tight for small agencies. ” – CNNMoney.
So , the obvious conclusion for those starting off new businesses or looking for ways to access capital to grow their company is that you or your small business can’t get any financing : right.
Not so fast.
Banks may not be lending (or are lending to large businesses who don’t really need the exact capital) but banks are not and have not always been the perfect options for small businesses or startups.
Most banks won’t hint a startup business – regardless of the economy and very very few banks will fund growing businesses as most growing enterprises have short-term cash flow issues (something that banks express is too risky and shy away from).
Therefore , banks seriously don’t matter to your small business when it comes to lending.
So , what can lesser firms do to gain the money they need to get off the ground or simply expand?
The simple answer is to do what every other enterprise has done since the start of history – find one. So , put on your entrepreneurial hat and look into these five alternative sources of capital.
4 Places To Find Business Investment capital Today
1) Private Business Loans:
Did you know that there are other businesses to choose from (big and small) that all they do is lend to small establishments? It is their business (how they make money) and they are not bad at it.
In fact , in order for these private lenders in which to stay business and make profits (just like you want to do) they should be make business loans to companies just like yours – bankers do not have to as they have clearly shown.
You are their precise customers and they are there for you. Private lenders have more leeway as they simply don’t have regulators watching their every move and as such are creating more products (more business loan programs) to fit your individual needs. Furthermore, most decisions of these lenders are made right there on the spot rapid no waiting weeks or longer.
How do they do this? Good they don’t look at your entire business or your overall cash flow or if your overall profitability. They look to the next event in your operating pattern – where your business earns revenue.
It’s all depending on the conversion of assets. Your business lands a new customer, does that job and waits to get paid. The lender sees that you will get paid and will provide your business needed working capital right until that point. Then, you start the process all over again. Thus, these individual lenders will lend against your outstanding accounts receivables – not based on your overall profits or the long-term salary prospects of your company.
Or, let’s say that your business includes orders coming in but doesn’t have the capital to even have those jobs started. Well, these private lenders could fund 100% of what you need to start and complete those requirements or jobs allowing you to satisfy your customers and earn that most of coveted profit.
Now, clearly these seem like a great method for existing businesses. But , if you are a startup, you just have to operate a little harder to either get yourself in that position (i. e. getting orders in hand) or use some of them other options (see below) to position your business to generate the wanted accounts receivables or purchase orders required by most of these lenders.
2) Personal Loans:
Most business owners hate to use own resources to get business capital. But , when all is considered and done – money is just money after all. Nevertheless personal loans have been the catalyst for growing new businesses since god knows when.
For a business loan, banks want business cash flow, profitability plus commercial collateral. Items that most new or small businesses shouldn’t have.
However , personal loans don’t have such stringent requirements.
Home loan premiums are at record lows opening up the possibility to tap into dwelling equity for money to start or grow your business. Build your organization and use the business to pay off the home equity loan. Virtually no different than taking a business loan, building your business and paying the mortgage loan off. But , with a home equity loan, you get a lessen interest rate and longer term for a lower payment and more freedom. Plus, these loans are so much easier to get approved.
Or simply, utilize your retirement funds. Roll over your 401(k) or IRA into your business. Not much difference than in getting your business or investing your retirement funds into a persons business. Plus, since this is not a loan – NO attraction, no terms and the ability to pay it back when it is best for you whilst your business and not in the best interest of the bank or lender.