Source of Capital:
- Working Capital Loans
- Equity (sell shares)
Working Capital Loans are commonly gear towards quick cash, especially for emergencies and are tapped to increase cash flow of a business for whatever reason it may have. Their common purposes are as follows:
- They are short-term loans meant to increase your cash flow.
- They are often used to fund the daily operations of your business.
Types of Investors:
Angels are basically rich individuals that are willing and capable to invest, inline with their preference and procedure.
These are professional investors will commit not just finances, but time and efforts as well.
Banks, financial institutions and insurance companies
OTC Capital is a trading platform for unlisted companies to raise S$5 million in 12 months.
Points to Ponder:
Study further for clear understanding Equity Financing.
Have it analyze when, how much and why sell a share of your business in exchange for funds.
Start-ups seed stage attracts different investors from those in a more advanced stage of development.
The type of investors you need will depend on what stage of development your business is in.
Note: Better to seek professional counsel for all of the above points.