Choa Chu Kang Money Lender
SG City Loan – Choa Chu Kang Money Lender

Choa Chu Kang Money Lender

Looking for a licensed money lender in choa chu kang? There are no choa chu kang money lender right now? But that does not mean that there are no money lender in west of Singapore.

Trying to figure out on which money lender is not easy. Especially if this is the first time that you are taking a loan. It can be very scary when you see all the news about them. But are they really as horrible as what the media portrays them to be?

Well, we all know that the media likes to report on news that will capture the attention of reads. As such, you can make your own judgements.

Money lenders can help you with cash when you are short on it. This can happen if you over spend your personal allowance for the month. Sometimes, even if you set a budget, unexpected things can throw you off guard. Causing you a lot of headache as you try to solve the problem.

Licensed money lenders are able to provide you with short term cash when you need it. There is a difference between the companies such that the interest rates and repayment type is different.

Some companies provide monthly instalment loans while some provide weekly loans. We will find you one that is suitable for you.

Since our platform is here, you can take advantage of it. Let us do the work for you. Let us help you do up a comparison chart to find out the best interests rates available.

Equity Financing 

It has always been said that one can raise capital or finance business with personal savings, presents or financial loans. You can get a loan from family and friends and this concept continuously persist in contemporary business yet possibly in different kinds or terminologies. It is a reality that, for businesses to grow, it’s prudent that people who run businesses tap financial resources. A variety of financial resources can be utilize, usually separating into two categories, debt and equity. 

Equity financing, in other words, is raising capital via the sale of shares in an enterprise, i.e. the purchase of an ownership interest to raise money for enterprise purposes with the buyers of the shares being referred as shareholders. Along with voting rights, shareholders take advantage of share ownership in the form of dividends and ultimately selling the shares at a profit. 

Benefit of equity financing

The benefit of equity financing or venture capital is that you will be obtaining funds in return for equity in your enterprise in the form of stock or some other form of equity-like percentage of income or gross or net sales. A primary benefit of this type of financing is that typically there is no monthly installment requirement to investors. Instead, you are surrendering ownership interest, in most cases, permanently. 

Debt financing, on the other hand, takes place whenever a firm raises funds for working capital or capital expenses by selling bonds, bills or information to people and institutional investors. In return for lending the money, the individuals or organizations become creditors. They then get a promise the principal and interest on the debt will be return later. 

The benefit of debt funding is that it will be finite; therefore you will pay down the debt with time to a zero-sum balance without any further obligation to the lender. The down stroke to debt financing is that conventional lenders will require a hard check out your enterprise including how long it has been in existence, earnings from the operation, expenses and will need hard assets for collateral for the loan 

A lot of companies use a combination of debt and equity financing. Accountants shares a standpoint that may be consider as distinct benefits of equity financing over debt financing. Most prominent among them is the realization that equity financing carries no repayment obligation. And that it gives additional working capital that may be use to grow a company’s business. 

Why choose to use equity financing? 

  • Interest is regarded as a fixed cost which can raise a company’s break-even point and as such high interest during challenging financial periods can improve the risk of insolvency. Too highly leveraged entities for instance often find it difficult to raise because of the high cost of servicing the debt. 
  • Equity financing does not place any extra financial load on the company since there are no necessary monthly payments associated with it; therefore a company is likely to have more capital available to invest in growing the business. 
  • Regular cash flow is required for both initial and interest payments, and this may be difficult for companies with insufficient working capital or liquidity challenges. 
  • Debt instruments are likely to feature clauses consisting of restrictions on the company’s activities, stopping management from seeking alternative financing options and non-core enterprise opportunities 
  • A lender is permit only to the repayment of the agree upon. The principal of the loan plus interest and has to a large extent no direct claim on future profits of the business. If the company is successful, the owners reap a more substantial portion of the rewards than they would if they had sold debt in the business to investors to finance the growth. 
  • The larger a company’s debt-to-equity ratio, the riskier the company is considered by lenders and investors. Appropriately, an enterprise is restricted as to the quantity of debt it can carry. 
  • The business is generally needs to promise assets of the company to the lenders as collateral. Proprietors of the business are in some instances require to guarantee repayment of the loan individually. 
  • Depending on company efficiency or cash flow, dividends to stakeholders could be postponed. However, the same is not possible with debt devices which requires settlement as and when they fall due. 

Adverse Implications 

Regardless of these advantages, it will be so unreliable to believe that equity financing is entirely safe. Think about these 

  • Profit sharing, i.e. investors expects and deserves a portion of profit gained after any given financial year similar to the tax man. Business managers who do not have the appetite for sharing revenue will see this method as a lousy choice. It can also be an essential trade off if the value of their financing is well balance. This has to be done with the proper understanding and expertise. Nevertheless, this is not usually the case. 
  • There exists a prospective dilution of shareholding or lack of control. This is typically the price to pay for equity financing. A significant financing risk to start-ups. 
  • Another possibility of conflict is sharing of ownership. Also, the need to work with other people can lead to specific strain and even conflict. This can happen if there are differences in vision, management style and strategies of running the business. 
  • There are many industry and regulatory procedures which will have to be adhere to in raising equity finance making the process cumbersome and time intensive. 
  • Unlike debt instruments holders, equity holders suffer more tax, i.e. on both dividends and capital gains. 

Decision Cards – Certain Possible decision aspects for equity financing 

  • If your creditworthiness is an issue, this could be a great option. 
  • If you’re more of a single independent operator, you may be better off with a loan. That way, you do not have to share decision making and control. 
  • Would you instead share ownership or equity than need to repay a bank loan? 
  • Are you comfortable sharing decision making with equity partners? 
  • If you are confident that the business can bring in healthy revenue, you may opt for a loan. Rather than taking a loan where you will need to share your revenue.

It is always advisable to consider the outcomes of financing preference on overall business strategy.