Start up loans.

[malakian]

Hey gd day every1....

I'm a novice in this forum and in business myself. Can any1 enlighten me on the banks or institution that are more lenient on giving start up loans.

Mayb any1 here could post a link or the website add.

Any feedback wld be appreciated.
thanks alot.

[Mad Scientist]

Start up loan will depend on your financial accounts of your company. Most banks will ask for 3 to 5 years financial statement of your company which it ridiculous actually if you are only starting up the business recently.
Personal loan is much easier. The amount varies from $15 K to $50K depending on how much you have with the bank you are dealing with
Read this

http://www.business.gov.sg/EN/BusinessF ... uploan.htm - 01 April 2010

[Pizzamancer]

Ever read Seth Godin? I have found that most start ups that start finding cash go belly up. You don't need cash to begin testing and working on your business, in fact in many cases it is detrimental.

Go here: http://changethis.com/manifesto/show/8. ... ppersBible

Godin's book Bootstrapper's Bible is a free download and will help you a lot more than looking for a start up loan.

[malakian]

Thanks guys for the input. Appreciate it.

P.S if any1 else has any other views pls do update.

Good day.

[Mad Scientist]

How long have you been in business OR are you starting up

[ksl]

To qualify for loans depend on what kind of business you have, manufacturing for example you may need a loan to kick start the business buying machinery.

Service sector would be unlikely to qualify. You need to walk before you can run. You don't need liabilities.

If its a worth while business angel investors maybe interested.

[malakian]

How long have you been in business OR are you starting up

Hey there Mad Scientist,

I'm really starting up....

[Mad Scientist]

How long have you been in business OR are you starting up

Hey there Mad Scientist,

I'm really starting up....

My bad, what I mean is are you starting to set up your business now or have you been running it for sometime.

[Strong Eagle]

KSL really hit the nail on the head (I can't believe I am saying that).

Service industry/retail startups will be hard pressed to get capital from anywhere. Failure rates are high, and in the event of failure you have nothing in the way of assets that can be sold off. I mean, I don't think anyone will finance your kitchen and service area for a restaurant unless you are also putting up a huge chunk of change.

Tech start ups have the problem that if you are asking for startup financing, you are asking for money to cover salaries, etc until you hit breakeven. Unless, you have a really good technical idea or plan, any potential lender would look at your proposed burn rate until profitability, then walk away unless you offered very high returns because if you default, there is no assets at all.

Manufacturing and industrial has the best prospects. First, you almost always hire workers, often blue collar, thus you attract gahmen attention and possible subsidies and guarantees. Second, you invest most of your money in hard assets that can be resold to recoup most of the loan.

[Mad Scientist]

SE

What you said on the first two are correct

My 2 cents worth for manufacturing itself where I am involved in all my life especially electronics and electrical goods the investment is huge. Most VC if they are still around are always looking for quick return at most three to five years.
Apart from the huge competition elsewhere, manufaturing in SG is almost good as dead.It is a sunset business to my POV.
RD for manufacturing too is a huge capital investment.
Start up or doing sub con for big MNC in SG is also not viable.
If the product is good and niche joining up with big brother is one way or start small but even small can be a considerable amount to one who is just starting up.
Worse of all electronic product shelf life is about six months at most.
Almost all MNC or SMNC do not do their manufacturing here. Most of them has in house R&D in SG to tap the R&D grant from SG Gahmen and huge tax incentive.
Anyway let's wait what the OP has to say

MS

[ksl]

KSL really hit the nail on the head (I can't believe I am saying that).

Neither can I, must be a painful experience