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Finding funds in difficult times is tough but nor impossible

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Author: Ravi Philemon

Finding funds for starting a business, especially in these difficult economic times, is tough but need not be impossible.

By: Hitesh Khan/

finding funds

Image credit: YouTube

The process of finding funds for starting a business, or financing a business, will serve to make sure that your business idea is a good one. If you can get financing that means that somebody has confidence that you will succeed and is betting money that you will.

Generally, the higher cost your business startup, the faster you should see a return on your investment. Take into account interest expense when calculating your return.

There are also low cost businesses with a great deal of potential. The person who can start his own business with very little money and perhaps no outside financing will usually invest “sweat equity” into the business instead of financial equity. This means that a low cost business may take longer to produce results. In the long run, however, if it has enough potential, it may be the right business for those that have few financial assets.

How to Get Money for Starting a Business–Start with Your Money First

Finding funds for starting a business is one of the thorniest parts of starting a business.

The first key is to save money so that you can put your own personal savings into the business. Nobody is going to want to invest in your business if you do not invest in your business yourself.

It is difficult enough to get a loan with a business startup and next to impossible if you don’t invest in your own business. When finding funds, remember that lenders want a track record and you may have none. Live frugally and save money so you can show potential lenders that you are committed to your business.

The Importance of the Business Plan
Before finding funds from outside sources for starting a business, make sure you have completed the entire business plan. The business plan template is your road map. It will tell you how much money you need, when you will need it, and when you expect to pay it back. Potential lenders will want that information and you should want it also. You should always prepare a business plan before asking anybody for money.

Understanding the Language of Business Financing
There are several business terms you should understand in order to make good decisions on getting money for starting a business:

A credit score is a numerical expression based on a statistical analysis of a person’s credit files, to represent the creditworthiness of that person. A credit score is primarily based on credit report information, typically sourced from credit bureaus.

Lenders, such as banks and credit card companies, use credit scores to evaluate the potential risk posed by lending money to consumers and to mitigate losses due to bad debt. Lenders use credit scores to determine who qualifies for a loan, at what interest rate, and what credit limits. The use of credit or identity scoring prior to authorizing access or granting credit is an implementation of a trusted system.

A secured loan is a loan in which the borrower pledges some asset (e.g. a property, jewellery) as collateral for the loan, which then becomes a secured debt owed to the creditor who gives the loan. The debt is thus secured against the collateral. In the event that the borrower defaults the creditor takes possession of the asset used as collateral and may sell it to satisfy the debt by regaining the amount originally lent to the borrower.

Unsecured loans are monetary loans that are not secured against the borrower’s assets.

Collateral means a security or guarantee (usually an asset) pledged for the repayment of a loan if one cannot procure enough funds to repay. The amount of collateral determines how much lenders will lend.

Personal guarantee is a promise made by an entrepreneur to repay the company debts in the event of default by the business. If the business doesn’t have enough assets to pay the debts, the owner has to pay out of his personal assets. A personal guarantee tells the bank that the business owner is serious about his business and about repaying his debts. When the owner is unable to cover the debts personally, the bank will start to seize personal assets. In a startup situation it is virtually impossible to borrow money from a bank and not give the bank a personal guarantee.

How to Secure Small Business Loan Quickly

If you are searching for a small business loan, the loan consultants at iCompareLoan can set you up on a path that can get you a it in a quick and seamless manner. Our loan consultants have close links with the best lenders in town and can help you compare various loans and settle for a package that best suits your needs. Find out money saving tips here.

Our Affordability Tools help you make better property buying decisions. iCompareLoan Calculators help you ascertain the fair value of a property and find properties below market value in Singapore.

To find out more about Peer to peer lending versus that of SME loans so as to make an informed decision: SME Loans or Peer-to-peer (P2P) Lending – What is the difference?

Contact us for advice on a new SME loans.

Contact us for home loan or refinancing advice.

The post Finding funds in difficult times is tough but nor impossible appeared first on iCompareLoan Resources.

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August BTO exercise postponed to provide first-timers more support

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for the source.
Author: Ravi Philemon

National Development Minister announces August BTO exercise postponement to provide first-time applicants more support.

In his National Day Rally speech on Aug 18, Prime Minister Lee Hsien Loong said the younger ministers have “a few more ideas to support couples to have more kids, and to keep HDB flats affordable”. Picking up from the PM, Minister for National Development Lawrence Wong said in a Facebook post yesterday (Aug 20) that his ministry and the Housing Board have been reviewing “how we can extend further support to first-timers” in buying new and resale flats, and hence decided to postpone the August BTO exercise.

He said, “We are constantly looking at ways to help young families set up their first homes. In recent years, we have increased housing grants for resale flats, started offering flats with shorter waiting times, and provided more flexibility for students and national servicemen who are ready to settle down to defer income assessment for housing grants and loans. These changes have improved housing affordability and helped young families to secure their own homes earlier.”

August BTO exercise to be pushed back

The Minister added: “MND and HDB have been reviewing how we can extend further support to first-timers buying new and resale flats, and I will share more details next month. To allow more home seekers to benefit from the upcoming changes, HDB will push back its Sales Exercise from Aug to Sep. I appreciate your understanding and patience while we finalise the details!”

We are constantly looking at ways to help young families set up their first homes. In recent years, we have increased…

Posted by Lawrence Wong on Tuesday, 20 August 2019

Flats slated for August BTO exercise now postponed to September

Build-To-Order
Month of Launch Town/ Estate 
(Click to view map of site)
Flat Mix Estimated No. of New Flats
September 2019 Non-Mature Town/ Estate
Punggol
  • 2-room Flexi
  • 3-room
  • 4-room
  • 5-room
2,710
Mature Town/ Estate
Tampines
  • 4-room
  • 5-room
640
November 2019 Non-Mature Town/ Estate
Tengah
  • 2-room Flexi
  • 3-room
  • 4-room
  • 5-room
  • 3Gen
3,470
Mature Towns/ Estates
Ang Mo Kio
  • 2-room Flexi
  • 3-room
  • 4-room
450
Tampines
  • 2-room Flexi
  • 3-room
  • 4-room
  • 5-room
650
August BTO exercise

Image credit: Wong’s Facebook
Flats slated for August BTO exercise now postponed to September

In May, the Government announced new CPF usage rules which was touted as being able to provide more flexibility for Singaporeans to buy a home for life. Some analysts suggested that the new rules would disadvantage the young from buying resale HDB flats. The new CPF usage rules will now focus on whether the remaining lease of the home can cover the youngest buyer until at least the age of 95.

Younger buyers who were viewing older resale flats for various reasons, including that of staying near their parents, are now reconsidering their decisions. Property agents said that the younger buyers of resale flats are put off by the higher cash quantum they would have to pay on top of their CPF outlay for the purchase of resale HDB flats. Being young, they may not have much savings for the cash component required for the purchase of such flats.

For example, a 4-room resale flat in Tampines is about $430,000, and a good number of these flats are built between the late 80s to the mid 90s. This means that some young families hoping to buy a flat in that estate to stay near their parents may be unable to do so with the new CPF usage rules, unless they come up with more cash upfront for the purchase.

Being a mature estate, the area is very popular and only a limited number of Build-To-Order (BTO) flats have been launched in the Tampines housing estate, since 2016. This estate may be out of reach for some young families even with top-ups from the proximity housing grants, unless they get cash gifts from their parents for the purchase.

Under the new CPF usage rules, the total amount of CPF that can be used for property purchase will depend on the extent the remaining lease of the property can cover the youngest buyer to the age of 95.

Remaining lease of property is at least 20 years and can cover youngest buyer until at least the age of 95 New rules on total use of CPF
(with effect from 10 May 2019)
Yes Buyer can use CPF to pay for the property up to the VL
No Use of CPF will be pro-rated based on the extent the remaining lease of the property can cover the youngest buyer to the age of 95. This will help buyers set aside CPF savings for their housing needs during retirement (e.g. a replacement property).

The authorities said to ensure prudent use of CPF monies, there will still be a minimum lease requirement for the use of CPF for property purchases.

Previously, buyers of HDB flats faced restrictions on the amount of HDB housing loan they could get to purchase flats with remaining leases of less than 60 years. With this update, buyers will now be able to take an HDB housing loan of up to the full 90% Loan-to-Value (LTV) limit , if the remaining lease of the flat can cover the youngest buyer to the age of 95.

If the remaining lease of the flat cannot cover the youngest buyer to the age of 95, they can still take an HDB loan but the LTV limit will be pro-rated from 90%, based on the extent that the remaining lease can cover the youngest buyer to the age of 95.

How to Secure a Home Loan Quickly

Are you planning to invest in properties during this period of private home price decline but ensure of funds availability for purchase? Don’t worry because iCompareLoan mortgage broker can set you up on a path that can get you a home loan in a quick and seamless manner.

Our brokers have close links with the best lenders in town and can help you compare Singapore home loans and settle for a package that best suits your home purchase needs. Find out money saving tips here.

Whether you are looking for a new home loan or to refinance, the Mortgage broker can help you get everything right from calculating mortgage repayment, comparing interest rates all through to securing the best home loans in Singapore. And the good thing is that all our services are free of charge. So it’s all worth it to secure a loan through us.

For advice on a new home loan.

For refinancing advice.

 

The post August BTO exercise postponed to provide first-timers more support appeared first on iCompareLoan Resources.

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Great Eastern Waterfront could emerge from remaking GSW

Click on Great Eastern Waterfront could emerge from remaking GSW
for the source.
Author: Ravi Philemon

Remaking of Greater Southern Waterfront and climate change activities could set stage for “Great Eastern Waterfront” says Cushman & Wakefield (C&W) Research.

In his 2019 National Day Rally Speech, Prime Minister Lee Hsien Loong said that Singapore’s Greater Southern Waterfront is to be remade to take advantage of our coastline. The PM said that the GSW will comprise of 30km of Singapore’s southern coastline, from the Gardens by the Bay East, all the way to Pasir Panjang.

GSW contains 2,000 hectares of land: six times the size of Marina Bay and in our terms, double the size of Punggol.

“The GSW includes the PSA city terminals at Tanjong Pagar, Keppel, and Brani. And it also includes the Pasir Panjang Terminals too. By 2027, the city terminals will move to Tuas. Later on, in 2040, the Pasir Panjang Terminal will also go to Tuas Port. This will free up prime land for re-development. It will be an opportunity to reshape the GSW into a new place to live, work and play.”

Commenting on the announcement by PM on the remaking of GSW, Cushman & Wakefield said, “the GSW is poised to be transformed into a mega mixed development zone where Singaporeans can work, live and play.”

One of the first new developments for GSW will be on the existing Keppel Club site, which will be redeveloped into a housing precinct, comprising a mix of 9,000 private and public housing units. This will allow a wide range of Singaporeans, both lower and higher income households, to enjoy sea-front living with modern and high-rise residential blocks in the GSW.

Ms Christine Li, C&W’s Head & Senior Director of Research said, “housing in this area is expected to good demand, given its city fringe location, sea-front living and connectivity due to the nearby MRT stations. Additionally, a new business cluster will emerge at a highly sought- after city fringe location where multinationals the likes of Google, Unilever and Cisco are currently situated.”

“There will be minimal impact on the existing housing projects in the vicinity when construction starts due to blocked views and construction noise and dust. However, over the longer term, housing prices are expected to appreciate due to the injection of more commercial and entertainment activities in the area. Sentosa and Pulau Brani will leverage on the waterfront location to create the next generation entertainment and recreational facilities for the region. Plans are already underway for Sentosa to open a new lifestyle quarter called Siloso Green, which will span 24,500 sqm.

Resorts World Sentosa has also previously announced a $4.5b development investment which will expand its current GFA by about half. Upcoming attractions include Singapore Oceanarium, Minion Park and Super Nintendo World nearby. Pulau Brani, which is now home to a port terminal is also expected to house a new resort called Downtown South.

The resort is expected to be accessible to the mass market, bringing more local traffic to the south which could help change the perception of Sentosa being too inaccessible and expensive to the local mass market. The large expanse of land in the GSW that is available for development is an opportunity to secure Singapore’s status as an entertainment hub in Southeast Asia.

This will further enhance the attractiveness of decentralised office and business park offerings, and will help to accelerate the pace of office decentralization away from the CBD over the next decade. Given the recent CBD incentive scheme, where the government is trying to encourage more mixed-use developments by introducing more residential, retail and hospitality components, the concept of a CBD may become obsolete in Singapore over the long term. The current CBD and the GSW may eventually evolve into a “Central Business Coast” and would connect One North to Bugis.”

C&W said that, these however are very long term plans, and these announcements are not expected to impact the real estate market over the short to medium term.

The C&W Research also commented on the topic of climate change, and said,”Singapore being a small island is especially vulnerable to the effects of climate change and rising sea levels.”

“The eastern coastline of Singapore has been highlighted as a potential high risk area due to rising sea levels. If left unchecked, this would have wide ranging repercussions on property values, safety and livability in the area in the future.

Two potential solutions were highlighted during PM Lee’s National Day Rally yesterday, namely building coastal defenses such as polders and dykes along the eastern coast line or reclaiming a series of islands and connecting them with barrages.

Both solutions would result in reclamation of land, which can then be used for new developments such as residential and commercial developments. Although such plans are not expected to complete in this generation, we could see the creation of a “Great Eastern Waterfront”, which would then connect the GSW to Changi Airport.”

Dark red areas at risk

Image credit: C&W – Remaking of Greater Southern Waterfront and climate change activities could set stage for “Great Eastern Waterfront” says Cushman & Wakefield (C&W) Research.

Polders and sea walls

Image credit: C&W – Building building coastal defenses could set stage for “Great Eastern Waterfront”

Reclaiming a series of islands

Image credit: C&W – Reclaiming a series of islands and connecting them with barrages could set stage for “Great Eastern Waterfront” development in future

How to Secure a Home Loan Quickly

Are you planning to invest in properties in the District 9 but ensure of funds availability for purchase? Don’t worry because iCompareLoan mortgage broker can set you up on a path that can get you a home loan in a quick and seamless manner.

Our brokers have close links with the best lenders in town and can help you compare Singapore home loans and settle for a package that best suits your home purchase needs. Find out money saving tips here.

Whether you are looking for a new home loan or to refinance, the Mortgage broker can help you get everything right from calculating mortgage repayment, comparing interest rates all through to securing the best home loans in Singapore. And the good thing is that all our services are free of charge. So it’s all worth it to secure a loan through us.

For advice on a new home loan.

For refinancing advice.

 

The post Great Eastern Waterfront could emerge from remaking GSW appeared first on iCompareLoan Resources.