Singapore continues to be among the top countries to start a business in, standing out in terms of being a global hub for innovation and easy access to capital. However, while it is simple to set up a company here, it is more crucial to have sufficient cash on hand to jumpstart your business activities. This can be used to pay your staff and invest in resources to watch your business idea take off.
Besides using your personal savings, there are also funding options available for new businesses in Singapore so you won’t have to keep considering your own out-of-pocket finances. Prior to the formation of your company, you can start looking into the various schemes and grants to ensure an early-stage success. If you have decided to incorporate a company in this promising startup ecosystem, here are a few initiatives to tap into:
For first-time businesses, you have various government schemes such as Startup SG Founder and Startup SG Tech to fund your organisation. For beginner entrepreneurs, Startup SG Founder may be the right fit for you – offering not only a mentorship programme with an Accredited Mentor Partner but also up to $50,000 of startup capital grant. Do note that you will be required to produce $10,000 as a co-matching fund to the grant.
If you are a tech startup, you can get early-stage funding for the commercialisation of proprietary technology via the Startup SG Tech. You may present either your Proof-Of-Concept (POC) project or Proof-Of-Value (POV) project when applying for this grant.
To streamline this search for government funding, you can navigate through the Business Grants Portal to select a suitable grant that fits your financial needs. Additionally, as part of the Singapore Budget 2022, more measures are being implemented to help you overcome potential hurdles and put your business in a better position for success.
link to Feb blog – What to Know About Singapore Budget 2022 for Your Business
“Do banks give loans to startups?” Yes, they do. There are various types of small business loans offered by different banks in Singapore. For example, your first few options may include an unsecured business term loan which is popular among small and medium-sized enterprises (SMEs). Based on your creditworthiness as a borrower, you may get immediate funds if your application is successful. As unsecured business term loans are collateral-free, it is for this reason that the interest rates are usually higher. Some other common types of loans comprise:
If you are confident that your business has a high growth potential to generate profits, you may also appeal to angel investors like the Business Angel Network South East Asia (BANSEA) and AngelCentral. These are usually high-net-worth individuals or groups interested in funding promising startups. Like crowdfunding, you will need to exchange ownership equity to receive the funding.
To get the much-needed financing for your business, you may leverage crowdfunding platforms such as FundedHere, Funding Societies, Fundnel and MoolahSense. To receive the funding, you can either provide the lender with equity in the form of ownership shares or otherwise opt to pay the loan back. While crowdfunding has its advantages, do your due diligence to verify if the platform is licensed and regulated by the Monetary Authority of Singapore (MAS).
With that, you can have the working capital needed to operate your startup. To grow your business efficiently, you may also find other cost-effective solutions with an experienced accounting company like Chartsworth.
Starting from as low as $90 a month, we can prepare your annual financial statements, corporate tax filing (Form C-S) and other important documents to help you stay compliant with the legal requirements of running a business in Singapore. You can then focus on the profitability of your company and stay competitive in the market. Even established businesses can benefit from the time-saving services provided by a qualified Chartered accountant.