Looking for Capital?
Looking to start a business? Or maybe you already have a small business you want to grow? Either way, you need capital in order to make anything happen. It is relatively easy to start a business in Singapore, but maintaining and growing it is another issue entirely. Adequate capital is imperative for the success of a business.
Many aspiring entrepreneurs with good business ideas are unable to jump-start their aspirations due to a lack of funds. Here are some funding options that are good for Singaporean businesses.
Government Grants and Equity Schemes
The Singapore government understands that small and medium enterprises (SME) are the backbone of their economy. This is why they are willing to support startup businesses and SMEs. Hence, there are numerous equity schemes and government grants these businesses can apply for.
However, in order to apply for these funds, your eligibility matters. If you belong to some industries like gambling and tobacco, you may not qualify. Some grants are also highly competitive and will involve a strict application process.
Here is a list of some of the grants and equity financing schemes that the Singapore government provides:
a. Capability Development Grant
This is a scheme which is offered by the government agency Spring Singapore. It is offered to fund start-ups in ten business areas which includes training, cost of certification and cost of equipment. If you are looking to develop a new product, this grant is for you. You can get up to 70% of the cost of your qualifying project if you are looking to scale up your business capability. However, the grant is capped at $30,000 by the government.
First-time entrepreneurs with innovative ideas can apply for this grant which is offered by Spring Singapore. However, this scheme is only open to local citizens and permanent residents of Singapore with a focus on the creativeness of their business idea. The concept feasibility, potential market and management team will also be evaluated.
This scheme is also affiliated with the Accredited Mentor Partners which provides business mentorships. A great platform for the budding entrepreneur to obtain contacts, advice and attend learning programs. They give you $7 for every $3 you have for the project and its capped at $50,000.
c. Financial Sector Technology and Innovation (FSTI) Scheme
The Monetary Authority of Singapore (MAS) launched the FSTI scheme in a bid to support innovation. Its purpose is to provide financial institutions with funds to develop technological infrastructure and establish innovation labs. You can apply for this scheme if you are a Singapore-based financial institution or a technology firm working with Singapore financial institutions. You can get up to 50%-70% of the qualifying cost upon qualification of this scheme. this grant is capped at $200,000 for up to 18 months by MAS.
d. Comcare Enterprise Funds
If you are a startup with an aim to support social entrepreneurs, this fund by the Ministry of Social and Family Development is just for you. It also provides expansion support to firms who have been established for a minimum of two years.
In order to qualify, your establishment must be in support of hiring and training disadvantaged Singaporeans. You can get up to $300,000 for operating cost for the initial two years and 80% start-up capital.
e. Early Stage Venture Funding
This equity scheme is a result of a collaboration between venture capital firms and the government in support of innovation and enterprise. This fund helps early-stage Singaporean tech startups. You qualify if your enterprise is operating in the technology sector and you can get up to $3 million.
To put it simply, these are high net worth individuals with extra funds who are willing to invest in startups. On top of investing capital, they may also provide their expertise during the initial stages of the business in exchange for equity.
Other investors are allocated shares depending on their contribution. They would usually expect up to 30% of the share capital. Investors can provide companies funds ranging between $25,000 to $100,000, according to corporate services provider, Rikvin. These investors would typically evaluate proposals by determining whether the business has a high potential for growth.
For small businesses who have grown past the start-up phase and are already generating revenue, venture capitalists (VC) provide funds for them. Companies that are deemed to have huge potential are usually invested in by professionals who manage VCs. In exchange for equity, VCs will invest money in a business and usually cash out when an acquisition or IPO happens.
Besides giving capital, the fund providers are assessing the business’ scalability and sustainability by being actively involved in it. They also mentor and share their expertise. In order to qualify for VC, your enterprise needs to show good strength and stability in terms of your team’s strength.
Business Incubators and Accelerators
If you are a startup and you are looking for professional mentoring and resources, then business incubators are the solutions for you. Accelerators are like incubators, but they assist an enterprise in taking a huge leap. However, both of them will support your business with investment, mentorship and a network of fellow startups.
Singapore is full of opportunities and does seem to have a vast number of business funds, however, the above funds require you to show that your enterprise has a proven track record and some level of capital of your own. But what if you are just starting out and is looking for funds to support your aspirations?
Then there is one more method of obtaining funding you can consider, so nothing should stand in your way of starting and growing a prosperous business.
FS Bolt is a mobile app for SME owners and startups based in Singapore or Malaysia to apply for a quick loan with minimal documentation. It provides simple and seamless access to working capital for businesses in Singapore and Malaysia. You can get approval on your application in 2 hours or less! With no early repayment fees, attractive rates and great customer service, FS Bolt is your solution to lightning fast funds.
FS Bolt is developed with the high achieving, fast moving business owner in mind. It can be used for short term cash flow needs, as a bridging loan or to take advantage of any stock opportunities. There is flexibility for our users by not charging early repayment fees and only charging interest for months that you use the funds.
In short, we provide everything you need to finance and grow your business. Apply now for a free, no obligation offer. Get approved for up to $100,000.
Why choose FS Bolt?
– The fastest way to obtain funds – in account by the next business day
– No early repayment fee – pay interest only on what you use
– Avoid being locked into term loans – no commitment, no hassle
– Hassle-free application (in minutes)
– Chat with us in-app and get your questions answered quickly
– Get instant notifications as your application is processed