Licence money lender Singapore usually focuses on providing capital to small businesses on an ongoing basis with the intent to generate a recurring stream of income from the interest payments that you will need to make as a small business owner. When you are working with private money lenders, you are certainly going to provide a business plan that focuses specifically on what you intend to do with the capital that you are seeking. In most business plans, there is an entire chapter dedicated to this issue. If you do not know how to properly put together a document that is appropriate for this type of outside funding source, then you should work closely with a certified public accountant so that you can present documentation that shows why you are a good investment risk.
Most licence money lender Singapore charge interest rates that are on par with those of credit cards. If you do not qualify for traditional credit then approaching a licensed money lender may be in your best interest. However, if you can effectively obtain capital without having to go to private investors, then it may be in your best interest to do so first. There are many alternatives to working with private lenders including; traditional bank financing, Small Business Administration loans and obtaining capital from friends and family. However, as with every type of capital that you obtain, some factors need to be determined before working with an outside funding source.
If you have a significant amount of collateral, the interest rate will probably be much lower than if you are seeking an unsecured loan. Additionally, if you can show that your business has an extensive operating history and are currently profitable, then you will be able to reduce further the costs that are associated with the credit facility. Throughout many of our future discussions, we are going to continue to discuss how you can secure business capital through private lenders on an ongoing basis as your business expands.