More turn to crowdfunding to finance business needs

Mr Nelson Ng Hsueh Chin has borrowed about $200,000 through Funding Societies for his business of importing snacks to sell at pop-up events here. He has paid off most of the loans. Mr Prasad Raj borrowed $50,000 through Funding Societies to renovate
Mr Prasad Raj borrowed $50,000 through Funding Societies to renovate his eatery in 2017 after banks turned him down. ST PHOTO: KUA CHEE SIONG

Peer-to-peer crowd-investing platforms in S'pore seeing rapid growth in recent years

Banks gave restaurateur Prasad Raj the cold shoulder when he asked to borrow $50,000 to renovate his Indian vegetarian eatery in Syed Alwi Road, so he turned to a far more accommodating source of financing - crowdfunding.

He approached Funding Societies with his request in late 2017 and it lent him the money, which he paid back in just six months. It was a pleasing outcome after the banks rejected his loan application because he was considered too old.

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A version of this article appeared in the print edition of The Straits Times on January 14, 2019, with the headline 'More turn to crowdfunding to finance business needs'. Print Edition | Subscribe