Non conventional personal loans for small businesses who need a boost
By: Hitesh Khan/
When your business is struggling and you need additional funding to tide over a tough patch, then you will find that your access to funding is completely cut off and end up with very expensive funding.
But there are many options available for small business owners searching for non conventional personal loans to give their businesses the much needed boost.
An angel investor or angel is an affluent individual willing to invest in a company at its earlier stages in exchange for an ownership stake, often in the form of preferred stock or convertible debt. Whether you decide to seek an angel investment depends on your personal management style and the long-term plans for your company. Unlike a bank loan or other types of debt financing, equity capital gives someone else an ownership interest in your company.
Credit Co-operative Societies
Co-operative Societies (Co-ops) are associations of people who voluntarily band together to achieve a common social or economic aim by forming a jointly-owned and democratically controlled business organisation. Co-ops operate on principles of self-help and mutual assistance, and most co-ops have social missions to benefit the society at large. Co-ops in Singapore are regulated by the Registry of Co-operative Societies, under the Co-operative Societies Act (Chapter 62) and Cooperative Societies Rules 2009. Credit co-ops provide financial services to their members who are within a pre-existing common bond of association or community of interest.
Crowdfunding describes the collective effort of individuals who network and pool their money, usually via the internet to support efforts initiated by other people or organizations. Crowdfunding has its origins in the concept of crowdsourcing, which is the broader concept of an individual reaching a goal by receiving and leveraging small contributions from many parties. Crowdfunding is the application of this concept to the collection of funds through small contributions from many parties in order to finance a particular project or venture.
Invoice Financing (factoring)
Factoring is a financial transaction in which a business sells its invoices to a third party at a discount. A business will sometimes sells its invoices to meet its cash needs. Factoring is commonly referred to as accounts receivable factoring, invoice factoring, and sometimes accounts receivable financing. Factoring is not a loan, it is simply selling outstanding invoices for cash.
Micro loans are small business loans typically under $50,000. Micro loans are generally used for start-up cash but are sometimes given to newly launched small businesses for working capital. Micro loans can be used for many purposes including the purchase of equipment, inventory, machinery, fixtures, furniture, supplies, and even to purchase another business. Each lender will have their own requirements for repayment of a micro loan. Interest rates and collateral requirements vary considerably between lenders but almost all require a personal guarantee by at least one of the business’ owners.
Peer to Peer Lending
Peer-to-peer lending is the practice of lending money to unrelated individuals, or “peers”, without going through a traditional financial intermediary such as a bank or other traditional financial institution. This lending takes place online on peer-to-peer lending companies’ websites using various different lending platforms and credit checking tools.
Venture Capitalists focus on companies developing significant innovations – be it a new piece of software, a life-saving cancer drug, or a new model for consumer sales. Unless the company is poised for significant growth, a VC won’t invest. Making investments at the earliest stages of a company’s development, often before a product or service is more than just an idea, involves significant entrepreneurial risk which severely limits capital sources for such companies. Yet, venture capitalists assume this risk alongside the company founders by providing capital in exchange for an equity stake in the company.
Accelerator works with startups for a short and specific amount of time, usually from 90 days to four months. Accelerators also offer startups a specific amount of capital, usually somewhere around $20,000.
Moneylenders in Singapore have to be registered and licensed with the Registry of Moneylenders. Most moneylenders operate with the goal of offering instant cash loans to Singaporeans, Permanent Residents and foreigners in Singapore. Moneylenders offer fast, hassle-free and efficient services to their clients.
Licensed moneylenders are useful to people who may find it highly challenging to procure a significant amount of money in a short span of time.
Licensed moneylenders being providers of non conventional personal loans will simplify your application process thereby making the cash loan more readily available.
If you have limited capital and are searching for non conventional personal loans to expand your business, the loan consultants at iCompareLoan can set you up on a path that can get you a it in a quick and seamless manner. Our loan consultants have close links with the best lenders in town and can help you compare various loans and settle for a package that best suits your needs. Find out money saving tips here.
If you are looking for a new home loan or to refinance, our Mortgage brokers can help you get everything right from calculating mortgage repayment, comparing interest rates all through to securing the best home loans in Singapore. And the good thing is that all our services are free of charge. So it’s all worth it to secure a loan through us for your business expansion needs.
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