Running a business is not easy. It demands a lot of time and capital to stay afloat during the formative stages. Depending on the type of business, it takes time to re coup the initial investment. There comes a time when the investor may want to grow the business and will requires additional funds which are not readily available.
Banks are the most common sources of financing in Singapore or one to qualify for a bank loan they must produce valid identification documents, business permits and/or licenses. If the business is a partnership then all partners/co-owners must be vetted accordingly. The applicant must submit current bank statements, financial statements, tax assessment among others. The applicant must also prove that the business has a minimum turnover of a set amount prescribed by the bank depending on the amount applied for.
So what are the available alternatives to bank loans?