Business financing is the process of funding business activities, making purchases, or investments. The financial markets in Singapore are well-established and financially stable. Comprising different financial sectors, our country is certainly a profitable financial hub.
Overall, there are many different types of business financing in the Singapore market, such as banking (especially investment banking and treasury activities), wealth management, insurance and capital market services (capital financing equipment leasing, auto leasing and commercial vehicle financing).
Banking
The common term of banking is an industry that handles cash, credit, and other financial transactions. Banks play an essential role in the economy by providing a financial service for people wishing to save and offering finance to businesses who wish to invest and expand. These continual loans and business investment are important for enabling economic growth in the country. On a company’s cash flow bank statement, there is a section that is also known as cash flow from financing activities, which summarizes how the business was funded over a particular period. The financial activities include:
- Issuing debt to raise money
- Repaying debt
- Issuing equity to raise money
- Repurchasing equity
- Paying dividends
The bank is a safe place to store extra cash and credit for customers and organizations. The bank offers financial transaction services such as savings accounts, certificates of deposit, and checking accounts. Banks use these deposits to make loans such as home mortgages, business loans, educational loans and car loans. However, the trend of car loans has been declining. This is due to the advantage of car leasing, which generates a lower cost of acquiring and maintaining the car. Moreover, car leasing requires little or no down payment, and monthly leasing fees are usually lower than car loan payments. At ETHOZ, we offer professional car leasing services for all individuals, organisations, and companies. We are also flexible when it comes to the cost of car rentals, offering a comprehensive range of financing solutions tailored to meet your budget constraints.
Wealth Management
Wealth management is an investment advisory service that combines other financial services to address the needs of affluent clients. Wealth management refers simply to money management, in all its aspects. Wealth management firms make money by charging fees for the various services they provide. In addition, wealth management firms provide clients with brokerage accounts, so clients can access virtually any type of investment. In addition to investment services, wealth management clients are provided with tax planning, estate planning, and retirement planning services. Wealth management requires a team of highly skilled and professional investment management advisors, along with a wealth manager to direct them. Wealth management is important and it involves more than just an investment advice. The process encompasses all parts of a client’s financial life. A client will benefit from a holistic approach that brings together several services to meet their specific financial goals. In another word, the client no longer has to obtain different pieces of financial advice from different sources.
Wealth management can help to maintain a client’s wealth and guide them in meeting their specific financial objectives. For instance, many wealth management solutions are tailored for particular clients. These solutions take into account a client’s current financial status, future goals, current wealth and other significant factors.
Insurance
Insurance is a type of coverage that is available to help you pay for damage to your property, car, medical bills etc. Likewise, it can be used to pay others on your behalf when you injure someone or damage their property. Insurance is a contract that transfers the risk of financial loss from an individual or business to a legitimate insurance company. It is extremely important as it helps to stimulate financial stability while promoting trade and commerce activities. This results in a sustainable economic growth and development in the country.
In another word, it is a type of business financing that uses probability and large numbers to determine the cost of insurance premiums charged to the clients based on various risk factors. The rate of returns must be realistically sufficient for the company to pay claims and expenses in the future, while making a reasonable profit, but not so much that it turns away potential customers. Insurance companies market their products and services to consumers in different ways. The price companies charge for insurance coverage is subject to government regulation. At ETHOZ, we provide a comprehensive range of auto solutions for authorised accident reporting and repair centre for the major insurance companies in Singapore, making us a one-stop reporting and insurance claim service centre for our customers’ complete convenience and peace of mind.
Capital Market
The capital market plays an extremely important role in channeling savings into productive investments for the country’s development of commerce and industry. These markets mobilize savings in an economy and divert them into productive investment. As a result, the capital market significantly helps in the capital formation and economic growth of the country.
The capital market also refers to a huge spectrum of tradeable assets that includes the stock market as well as other trading different financial products such as capital financing equipment leasing, auto leasing and commercial vehicle financing. A capital lease is usually long-term and non-cancellable and is used to lease equipment that the organisation wants to use in the long term or buy at the end. At ETHOZ, we offer a range of services that includes capital financing equipment leasing solutions and integrated automotive solutions like auto leasing and commercial vehicle financing. We are proud to be appointed by Enterprise Singapore to provide loans.
Find Out More about Business Financing in Singapore
For those individuals who are seeking to find out more about business financing in Singapore, it is important to do some research using an ample amount of time to prevent any possible hiccups. At ETHOZ Capital Ltd, we provide a wide spectrum of capital financing solutions – all individually customised to suit customers’ unique needs and requirements.
Take a look at our business financing solutions or simply reach out to a member of our team at contactus@ethozgroup.com to explore the options available to you. If you like reading more of such content, head over to our news to learn useful tips and case studies that can help your business!