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Funding Options to Raise Capital for Your Business

There are a number of funding options to raise capital for your business but it is important to find out which method is the best for you.

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Thanks to the internet, it is quite simple now to gain financing from like- minded people through the internet.

Raising funds for the business is not always easy and it is important that others too have faith in your vision as much as you do. However, professional lenders will look through a lot of parameters before they feel confident to trust you with their money. In due time you will have to return the money back to them and they would want to make absolutely sure that your business is up for it. There are a number of funding options to raise capital for your business but it is important to find out which method is the best for you.

  • Business loans: This is the most secure method of obtaining financing and you can get the loan from banks or NBFCs. These are term loans that are mostly utilized for business purpose. The business loan rates is mostly between 12% and 18%, depending on a number of factors. The money has to be repaid with interest by the end of the tenure but more or less the cash is enough to take care of all aspects of your business. Bajaj Finserv has special Flexi loans for business where the tenure is sufficiently long and one can make the repayment according to one’s convenience.

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    In fact, if you successfully pay off the first loan, applying for a similar loan the next year becomes easier. The same can be said of line of credit which may be used in similar fashion. Pixabay
  • Asking from friends and family: Well, this still looks like the easiest and the most plausible method of gaining financing. Our family will always stand by us and by combining your own cash reserves as well as acquiring the extra money through their help, one can get a sizeable amount for one’s business. However, the pressure to succeed in such cases is a lot more, since you have the additional responsibility of living up to their expectations.
  • Crowdfunding: Thanks to the internet, it is quite simple now to gain financing from like- minded people through the internet. Crowd funding platforms are doing quite well and if you can pitch your business idea well, people from all over the world can donate for your business. They can donate very less but just by reaching out to a large number of people, you can collect a good sum. There is no need to return this money either but you can always show your appreciation towards them with a reward when your business succeeds.
  • Working capital loan: A working capital loan is also a kind of business loan and it is mainly opted for by the businessmen when they want to tide over a particularly slow time in the business. It is a fact that production is often not the same throughout the year and nor are the sales always high. However, some basic expenses like maintenance of the premises, its rent, paying for the security, paying the salary of the employees, and some other basic expenses will always have to be met. With the help of this loan, these basic expenses can be met and the loan can be repaid when the next peak season arrives and the sales go up again. In fact, if you successfully pay off the first loan, applying for a similar loan the next year becomes easier. The same can be said of line of credit which may be used in similar fashion.
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There is no need to return this money either but you can always show your appreciation towards them with a reward when your business succeeds. Pixabay

Also Read: Vatican May No Longer Allow Bishops To Escape Sanction Who Cover Up Clergy Sex Abuse Cases

If you are looking for business finance from trusted lenders like banks or NBFCs, then you should check out the SME and MSME loans from NBFCs. The loan value can go up to Rs 30 lakhs and the financing can be obtained just by submitting two documents.

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Mobile Banking Becomes Main Personal Banking Channel in Singapore

Mobile banking is growing for a reason - it comes with numerous benefits. Customers get to enjoy easier transactions, increased flexibility in keeping track of finances among others.

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Virtual banking is becoming the go-to option for many customers in Singapore. Flickr

Digitization is revolutionizing the personal banking sector, with mobile banking experiencing a 15% jump over the last 12 months, as noted by Telecomasia. In fact, mobile banking now beats branch banking by transaction volume and new customer adoption in Singapore. Mobile is entering a revolutionary and rapid phase with regions like South East Asia and Africa becoming the main driver of this trend globally. Banks, in particular, are putting a lot of effort to leverage mobile technology to remain competitive.

Despite the rising popularity of mobile banking, banks need to fully transform before Singapore can be considered a mobile-driven digital economy:

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Bank of India. Flickr

Dedication to Improving User Experience 

Up to 46% of mobile banking users have reported issues when using their mobile banking app which the finance customer service industry are invested in improving. From logging problems to long loading times and even security issues, the personal banking sector understands the value in improving user experience. Loyal customers who save money each month via mobile apps are motivated by banks who embrace the enhancement of digital services, and who place their valuable customers at the center of their transformation. This not only improves their reputation, but also deepens overall customer relationships.

Building Trust and Brand Confidence is Top Priority

Personal banking is all about offering quality services to consumers in a convenient and effective way, and mobile banking falls perfectly in this category. But to achieve meaningful gains, building trust and brand confidence has to be a top priority for banks, as 41% of bank customers who are yet to switch to mobile banking apps cite trust and security as their main concern. Additionally, customers are faced with numerous choices in the market, combined with Fintech disruptions in the industry. To build trust, banks need to focus on developing mobile banking platforms that assure customers of secure, fast and efficient banking at all levels.

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Despite the rising popularity of it, banks need to fully transform before Singapore can be considered a mobile-driven digital economy. Flickr

Virtual Banking is the Way to Go

Virtual banking is becoming the go-to option for many customers in Singapore. With mobile wallet use on the rise, more bank customers are expected to opt for multiple mobile banking apps to suit their specific financial needs. From Apple Pay that makes shopping online convenient to NetsPay that allows you to make digital payments via top banks in Singapore, virtual banking is expected to be the next frontier of growth in the personal banking sector. This is evident as we continue to see the emergence of more mobile banking solutions and e-wallets, with financial institutions adopting innovative digital banking technologies that make life easier to end customers.

Mobile banking is growing for a reason – it comes with numerous benefits. Customers get to enjoy easier transactions, increased flexibility in keeping track of finances, convenient monitoring of all transactions, more efficient bill payments, saved time and money spent on visiting bank branches, among others. Despite the industry facing a few challenges, mobile banking is expected to remain the leading personal banking channel in Singapore.