• About Us
    • Fact Checking Policy
    • Ownership & funding information
    • Volunteer
  • Subscribe
  • Letter submission
    • Submissions Policy
  • Contact Us
The Online Citizen Asia
  • Opinion
    • Editorial
    • Commentaries
    • Letters
    • Comments
  • Current Affairs
    • Singapore
    • Malaysia
    • Indonesia
    • China
    • ASEAN
    • Asia
    • International
  • Finance
    • Economics
    • Labour
    • Property
    • Business
  • Community
    • Arts & Culture
    • Consumer Watch
    • NGO
    • Lifestyle
    • Travel
  • Politics
    • Civil Society
    • Parliament
    • Transport
    • Education
    • Environment
    • Health
    • Housing
  • Law & Order
    • Legislation
    • Court Cases
No Result
View All Result
  • Opinion
    • Editorial
    • Commentaries
    • Letters
    • Comments
  • Current Affairs
    • Singapore
    • Malaysia
    • Indonesia
    • China
    • ASEAN
    • Asia
    • International
  • Finance
    • Economics
    • Labour
    • Property
    • Business
  • Community
    • Arts & Culture
    • Consumer Watch
    • NGO
    • Lifestyle
    • Travel
  • Politics
    • Civil Society
    • Parliament
    • Transport
    • Education
    • Environment
    • Health
    • Housing
  • Law & Order
    • Legislation
    • Court Cases
No Result
View All Result
The Online Citizen Asia
No Result
View All Result

How to get funding for your business

by onlinecitizen
10/05/2014
in Current Affairs, Economics
Reading Time: 3 mins read
1

By Cristina Beltran
Are you looking into starting a new business or experiencing a cash-flow squeeze but don’t know where to source your funds?  Or perhaps you need some tips on how to improve your cash flow and get some instant cash. Some entrepreneurs have the ability to self-fund, but don’t despair if you’re not one of them.   There are also a lot of other options that will give your businesses the needed financial boost.  Here are some common and creative ways to get your business funded:
Factoring
Even though factoring is one of the oldest ways to get financing for your business, some companies still like it because you get your money quickly (within 24-48 hours).  This method is often used by companies who have slow-paying customers. You sell your invoices or accounts receivable to “factors” or specialized companies.  If the billed customer proves to be credit-worthy, the factor gives you the invoice amount (around 70-90 percent). After you’re paid, the factor remits the balance and subtracts the factoring or transaction fee. The service can be quite costly, but it’s sometimes a more preferred method to get financing compared to loaning from banks that require a lot of paperwork and other investors.
Peer to peer lending (P2P)
Also known as person-to-person lending or social lending, this method lets you loan from people you don’t know through online sites. Borrowers and lenders are matched commonly via online auctions. Loans may come from many different lenders or lenders may pick a particular borrower. You should be able to sell your “story” on these sites to get the funding you need. Lenders generate income through interest. However, it may not be that easy to get a P2P loan and the interest charged by these platforms may be higher than traditional loans in order to compensate for the risk lenders are taking. Lending Club and Prosper.com are the  two most popular P2P sites you can look into.
Crowdfunding
Another online initiative, crowdfunding gives netizens the opportunity to invest in your business idea and make it a reality. Register on crowdfunding sites like Kickstarter and IndieGoGo, sell your story, determine your target amount, and wait for people to invest in it.  To further motivate potential donors to invest in your business idea, you can promise them rewards such as product samples if your business gets complete funding.  Only those who get complete funding will get paid, but the best part is, you won’t have to repay your donors for their investment.
Microfinancing
Microfinance is a sustainable form of financing for unemployed or low-income individuals. Microfinancing institutions offer small loans with an interest lower than than those charged by banks. Good Return and Opportunity International are examples of some microfinancing institutions. If you have a great business idea and need a small capital, then you can consider this option.
Business incubators
Business incubators are organizations that provide great opportunities for financing and mentoring startups and other early-stage companies.  They even offer physical spaces for your office at a monthly or daily fee. Example of a business incubator is ATP Innovations.
Contests and competitions
Another great way to get money is to win it.  You can join national or local competitions that not only gives you prize money for your business plan, but also offers great opportunities for learning and networking.  Schools like RMIT University hold annual business plan competitions to help turn your entrepreneurial dreams into reality.
There are a lot of other financing opportunities for entrepreneurs like you, but those mentioned above are already practical and creative options to source your funds. Remember that once you get your startup capital, you’d also have to read on some tips on how to improve your cash flow, so you’ll put your investors’ money to good use.

For just US$7.50 a month, sign up as a subscriber on The Online Citizen Asia (and enjoy ads-free experience on our site) to support our mission to transform TOC into an alternative mainstream press.

Related Posts

Minister K Shanmugam appears to lack understanding of case where judge found bodycam footage debunked police officers’ sworn affidavits
Politics

Police investigations into conduct of WP’s Pritam Singh and Faisal Manap still ongoing: K Shanmugam

08/02/2023
Malaysia’s seven-time Asean Para Games champion seen selling tissues at Bukit Bintang
Malaysia

Malaysia’s seven-time Asean Para Games champion seen selling tissues at Bukit Bintang

08/02/2023
53-year-old Singaporean worker dies after glass doors topple on him, fourth workplace fatality in 2023
Labour

53-year-old Singaporean worker dies after glass doors topple on him, fourth workplace fatality in 2023

08/02/2023
Gerald Giam: Providing affordable homes for all Singaporean families
Politics

Gerald Giam: Providing affordable homes for all Singaporean families

08/02/2023
PAP MP Xie Yao Quan counter-grilled by Leon Perera over housing affordability as he tries to nitpick on WP’s Manifesto
Parliament

PAP MP Xie Yao Quan counter-grilled by Leon Perera over housing affordability as he tries to nitpick on WP’s Manifesto

08/02/2023
Louis Chua: Not difficult to see manifestations of the severe demand-supply imbalance in Singapore’s housing market today
People

Louis Chua: Not difficult to see manifestations of the severe demand-supply imbalance in Singapore’s housing market today

08/02/2023
Subscribe
Connect withD
Login
I allow to create an account
When you login first time using a Social Login button, we collect your account public profile information shared by Social Login provider, based on your privacy settings. We also get your email address to automatically create an account for you in our website. Once your account is created, you'll be logged-in to this account.
DisagreeAgree
Notify of
Connect withD
I allow to create an account
When you login first time using a Social Login button, we collect your account public profile information shared by Social Login provider, based on your privacy settings. We also get your email address to automatically create an account for you in our website. Once your account is created, you'll be logged-in to this account.
DisagreeAgree
1 Comment
Newest
Oldest Most Voted
Inline Feedbacks
View all comments

Latest posts

Minister K Shanmugam appears to lack understanding of case where judge found bodycam footage debunked police officers’ sworn affidavits

Police investigations into conduct of WP’s Pritam Singh and Faisal Manap still ongoing: K Shanmugam

08/02/2023
Malaysia’s seven-time Asean Para Games champion seen selling tissues at Bukit Bintang

Malaysia’s seven-time Asean Para Games champion seen selling tissues at Bukit Bintang

08/02/2023
53-year-old Singaporean worker dies after glass doors topple on him, fourth workplace fatality in 2023

53-year-old Singaporean worker dies after glass doors topple on him, fourth workplace fatality in 2023

08/02/2023
Gerald Giam: Providing affordable homes for all Singaporean families

Gerald Giam: Providing affordable homes for all Singaporean families

08/02/2023
PAP MP Xie Yao Quan counter-grilled by Leon Perera over housing affordability as he tries to nitpick on WP’s Manifesto

PAP MP Xie Yao Quan counter-grilled by Leon Perera over housing affordability as he tries to nitpick on WP’s Manifesto

08/02/2023
Louis Chua: Not difficult to see manifestations of the severe demand-supply imbalance in Singapore’s housing market today

Louis Chua: Not difficult to see manifestations of the severe demand-supply imbalance in Singapore’s housing market today

08/02/2023
Leon Perera questions Govt if it seriously considered the link between housing affordability and fertility

Leon Perera questions Govt if it seriously considered the link between housing affordability and fertility

08/02/2023
Ex-Tokyo Olympics official held on alleged bid-rigging: media

Ex-Tokyo Olympics official held on alleged bid-rigging: media

08/02/2023

Trending posts

Cognizant India transfers staff to work in Singapore as recently as this year

Local IT grads can’t find jobs while engineers constantly transferred from India to work in SG under CECA

by Correspondent
05/02/2023
112

...

No response from Josephine Teo on whether Mediacorp has been instructed to stop coverage of SMT circulation scandal

No response from Josephine Teo over alleged blackout of coverage by Mediacorp over SMT circulation scandal

by Terry Xu
06/02/2023
13

...

Adani’s brother runs SG company and registers as director with local ID

Adani’s brother runs SG company and registers as director with local ID

by Correspondent
03/02/2023
26

...

They have done a fine job of confusing us about the jobs situation

They have done a fine job of confusing us about the jobs situation

by Augustine Low
01/02/2023
48

...

Japanese-Canadian junior high school girl breaks national record with 3km in 9:02 mins

“I want my normal life back,” Sherry Drury withdraws from National Junior High School Tournament due to overheated public attention

by Yee Loon
06/02/2023
4

...

19-year-old delivery rider in China covers 5km in 22 minutes to deliver antivenom to woman who had bitten by snake

19-year-old delivery rider in China covers 5km in 22 minutes to deliver antivenom to woman who had bitten by snake

by Yee Loon
06/02/2023
5

...

May 2014
M T W T F S S
 1234
567891011
12131415161718
19202122232425
262728293031  
« Apr   Jun »

The Online Citizen is a regional online publication based in Taiwan and formerly Singapore’s longest-running independent online media platform.

Navigation

  • Editorial
  • Commentaries
  • Opinion
  • Politics
  • Community

Support

  • Contact Us
  • Letter submission
  • Membership subscription

Follow Us

  • Facebook
  • Twitter
  • YouTube
  • Instagram
  • Fact Checking Policy
  • Privacy Policy

© 2022 - 2023 The Online Citizen Asia

No Result
View All Result
  • Opinion
    • Editorial
    • Commentaries
    • Comments
  • Current Affairs
    • Malaysia
    • Indonesia
    • China
    • ASEAN
    • Asia
    • International
  • Finance
    • Economics
    • Labour
    • Property
    • Business
  • Community
    • Civil Society
    • Arts & Culture
    • Consumer Watch
    • NGO
  • Politics
    • Parliament
    • Transport
    • Education
    • Environment
    • Health
    • Housing
  • Law & Order
    • Legislation
    • Court Cases
  • Lifestyle
    • Travel
  • Subscribers login

© 2022 - 2023 The Online Citizen Asia

wpDiscuz