As soon as we hit our bank loan limit, we run out of ideas where we can get funding. When the going gets tough, we should educate ourselves of unconventional ways we can lend money. Because of economic crisis we have experienced in the past, individuals and businesses now have a lot of eccentric ways to obtain financing. I have listed below some unconventional money lending and borrowing approach:
Customer Lending
As a business owner, when we think about borrowing money, the customers are the least we can think of. Despite its introduction in early 2000s, customer lending is still a new concept to most companies. The idea of it is pretty simple. Your customers will be your financing sources. In return, you will pay them back with the product or service you offer. But beware, you should prepare a proper agreement paper between you and the customers so you won’t end up paying them twice if all of a sudden they don’t want your product anymore instead they want their cash back.
Credit Card Lending
Keeping a good credit card has benefits to it. If your record is good, you will have easy time financing through credit card. But the amount you can borrow is limited to your capacity as assessed by the credit card company. It’s a nice option if you can’t take advantage of a money lender in Singapore.
Factoring
If you need easy cash, factoring might be the solution you’ve been waiting for. With factoring, you will get 75-80 percent of the amount you are borrowing within 10 days. The remaining 20-25 percent will only be available depending on your ability to pay.
Hedge-Fund Lending
If your business is backed by asset and technology concepts, hedge-fund lenders would be more than willing to finance you. The amount you can borrow is completely dependent on your pitch to the lender. The process in hedge-fund lending is much better and flexible than your typical money lender. But the reason why they are willing to fund asset and technology based companies is because they are risky. Once they failed and are unable to pay, they will need to pay enormous penalty fees.
Peer-to-Peer Lending
Processing papers to get a funding approval can be stressful. With Peer-to-Peer lending, you don’t have to keep things formal especially if the relationship between the lender and borrower is personal. There is quick accessibility to money since you don’t need to prove yourself to the lender how trustworthy you are since you know him. The disadvantage of it is the gratitude idea. You would prioritize every request or order of the lender whenever he makes one.
Now, you know these unconventional ways to lend and borrow money, you should weigh which one is suitable. Just make sure to check if you've chosen licensed money lenders in Singapore. There’s nothing worse than to get fooled financially when you are asking for financing.
Customer Lending
As a business owner, when we think about borrowing money, the customers are the least we can think of. Despite its introduction in early 2000s, customer lending is still a new concept to most companies. The idea of it is pretty simple. Your customers will be your financing sources. In return, you will pay them back with the product or service you offer. But beware, you should prepare a proper agreement paper between you and the customers so you won’t end up paying them twice if all of a sudden they don’t want your product anymore instead they want their cash back.
Credit Card Lending
Keeping a good credit card has benefits to it. If your record is good, you will have easy time financing through credit card. But the amount you can borrow is limited to your capacity as assessed by the credit card company. It’s a nice option if you can’t take advantage of a money lender in Singapore.
Factoring
If you need easy cash, factoring might be the solution you’ve been waiting for. With factoring, you will get 75-80 percent of the amount you are borrowing within 10 days. The remaining 20-25 percent will only be available depending on your ability to pay.
Hedge-Fund Lending
If your business is backed by asset and technology concepts, hedge-fund lenders would be more than willing to finance you. The amount you can borrow is completely dependent on your pitch to the lender. The process in hedge-fund lending is much better and flexible than your typical money lender. But the reason why they are willing to fund asset and technology based companies is because they are risky. Once they failed and are unable to pay, they will need to pay enormous penalty fees.
Peer-to-Peer Lending
Processing papers to get a funding approval can be stressful. With Peer-to-Peer lending, you don’t have to keep things formal especially if the relationship between the lender and borrower is personal. There is quick accessibility to money since you don’t need to prove yourself to the lender how trustworthy you are since you know him. The disadvantage of it is the gratitude idea. You would prioritize every request or order of the lender whenever he makes one.
Now, you know these unconventional ways to lend and borrow money, you should weigh which one is suitable. Just make sure to check if you've chosen licensed money lenders in Singapore. There’s nothing worse than to get fooled financially when you are asking for financing.