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Best Funding Options for SMEs

5 SMEs Funding Options A great business idea tends to get entrepreneurs hopping out of bed in the morning. But what is it that could keep them away from climbing back in for a good night’s sleep?? The answer is the tricky issue of how to sustainably fund the business dreams. If your ‘worst case’ cash flow forecast depicts that you are getting far too close to running out of cash, your hunt for credit would fast kick in intruding all your development plans and growths. However, despite the hiking importance of SMEs to the economy of a nation, the conventional avenues of finance, such as bank loans, are difficult to come by than ever. About 63% of the SMEs that apply for a bank loan does not get the amount that they wish. Nevertheless, there are many more options than ever for SMEs.

Investment Plan People can take a look at the possibilities open to business owners for the Best Investment in Malaysia. 1.Venture Capital Funding : Many entrepreneurs hesitate regarding venture capital funding as they could be reluctant to give up equity. But there are several advantages to this route. A great plus for VC funding is that it does not involve regular repayments like that of a bank loan. For start-ups with irregular cash flow, this implies that any amount that comes in could be ploughed straight back into the business. It even decreases your risk as, unlike with a loan, you would not have to offer a personal guarantee to the investors if things do not work out. The best VCs would help open new networks, helping to accelerate growth.

2. Grants and Tax Breaks Many SMEs are missing out on funds by not realizing that they are eligible for government grants and tax breaks. The government is actively looking to support businesses, which are making valuable research and development contributions to the national economy. Certain firms could help SMEs find out whether they are eligible for tax breaks and save them many pounds in the process.

3. Angel investors Angel investors are wealthy individuals who provide SME Loans Malaysia in return for equity or convertible debt. An advantage of this method over VC funding is that often you get a lot more personal mentoring, especially if they made their money in the same field as yours. They even ask for lower amounts of equity. On the contrary, angels do not always have as deep pockets as VC backers.

4. Crowdfunding Crowdfunding lets people or organizations invest in start-ups in return for equity. It has become a part of the mainstream. Rather than asking a few people for large sums of money, with crowdfunding you ask numerous people for small sums of money. Entrepreneurs pitch their strategies online to the community, set a goal and lookout if the funds come in.

5. Peer-to-Peer Lending Peer-to-peer lending platforms directly match SMEs with individuals or organizations that are willing to lend money. The applicants submit their proposal and the investors bid through a marketplace to assist the businesses that appeal to them. Loans are faster and are made of many small investments.

Conclusion If you wish to raise funds for your enterprise effortlessly, you can get started in seconds, with these SME funding options. For more information contact us at:

Co-labs, UG-D5, Upper Ground, Utropolis Marketplace, Seksyen U1, Jalan Kontraktor U1/14, 40150 Shah Alam, Selangor, Malaysia Email: Tel: +603-7710 0858 Mobile / Whatsapp: +6012-508 5853 Fax: +603-7727 4125

Sme finance & Funding Society Malaysia  

If you are not aware of funding societies.Visit our website and get details of how and where to source SME funding for the business.More Inf...

Sme finance & Funding Society Malaysia  

If you are not aware of funding societies.Visit our website and get details of how and where to source SME funding for the business.More Inf...