As venture capital funding continues to decline, home-grown businesses and startups face a tougher funding environment. Here’s how alternative funding methods can help SMEs grow faster.
Venture capital inflows into Southeast Asia are continuing to dwindle, with funding levels extending its third year of decline. Distressingly, this unwelcome turn took place after a bonanza period which saw venture activity and deal value reach record highs in 2021 and throughout the first half of 2022.
The impact is most keenly felt in Singapore, given our favoured status among private equity investors. In 2023, local startups accounted for over two-thirds of all equity-linked VC funding operating across the ASEAN nations, and more than half of all venture-backed fundraisings closed by start-ups.
With funding levels falling to its lowest in six years, startups and small businesses continue to face a tight funding environment, threatening growth plans. On the bright side, stable GDP growth and positive consumer sentiment continue to foster a favourable business environment.
To overcome the current challenges and capitalise on market opportunities, SMEs and entrepreneurs need alternative access to credit – and the faster and more seamlessly they can get it, the better. To this end, startups and SMEs should consider ANEXT Bank for the banking solutions they seek.
Table of contents
- ANEXT Bank - Digital bank made for SMEs
- What can ANEXT Bank do for startups and small businesses?
- ANEXT Bank business solutions
- Unlock next-level business banking with ANEXT Bank
ANEXT Bank - Digital bank made for SMEs
ANEXT Bank is one of Singapore's pioneering digital banks that is regulated by the Monetary Authority of Singapore (MAS), catered to startups and SMEs. Since its inception in June 2022, the bank has been focused on helping local enterprises grow through innovative banking solutions and valuable business resources.
What sets ANEXT Bank apart is its genuine commitment to empowering the SME community; this was readily demonstrated in the recently held entrepreneurship masterclass on how startups can build a powerful international presence. The event, featuring eight experts from various backgrounds, was held in partnership with ACE.SG (Action Community for Entrepreneurship).
That’s not all. Through its SME Friends of ANEXT programme, the bank partners micro, small and growing businesses to listen to their challenges and pain points, and together, reimagine financial services for the digital age.
Such efforts have not gone unnoticed by the broader community. Despite its young age, ANEXT Bank is the recipient of several awards, including CNBC’s World’s Top Fintech Companies 2024, Singapore Business Review Technology Excellence Awards 2024, and Asian Banking & Finance Awards 2024.
What can ANEXT Bank do for startups and small businesses?
ANEXT Bank stands out for its unique value proposition in a sea of similar providers. Here’s what startups and small business owners can expect when partnering with the digital bank.
Cost-effective banking
One pain point faced by businesses is the high fees and charges that accompany business banking. Between unfavourable exchange rates and seemingly never-ending fees and charges, small businesses grapple with high banking costs that add to operating costs.
To address this challenge, ANEXT Bank does away with extraneous fees and charges while implementing competitive rates for its products and services. This helps customers to better manage their business finances while minimising overhead costs.
Streamlined processes with advanced fintech
ANEXT Bank strives to streamline financial transactions and make business banking a breeze. Leveraging on advanced fintech innovations, ANEXT Bank customers can benefit from unlimited local SGD fund transfers and inward TTs, and enjoy the ability to transact internationally in nine foreign currencies.
Instead of letting their business balances lie idle, customers can earn daily interest on their SGD and USD balances, while still being able to flexibly access their funds at a moment’s notice. For greater yield, ANEXT Bank’s Fixed Deposit offers easy investing from US$5,000 and flexible terms ranging from one to 36 months.
Scalable solutions to support your business growth
Startups and small businesses need a banking partner that can keep up with their growth, and ANEXT Bank has got you covered here too. The digital bank offers solutions that support business growth, so startups can scale up their operations without fear of outgrowing their banking services.
For instance, small businesses can increase their loan limits up to S$500,000 with no collateral needed. And for loans up to S$30,000, no additional documentation is required, making for fuss-free borrowing whenever your business is ready for it.
ANEXT Bank business solutions
Multi-currency ANEXT Business Account
Designed as an all-in-one online banking facility, the multi-currency ANEXT Business Account empowers business banking both locally and globally. Transact internationally in nine global currencies spanning USD, CNH, THB, EUR and more at competitive rates, while enjoying unlimited local SGD transfers and inwards TTs.
Another advantage is how the balance in your ANEXT Business Account automatically earns daily interest on balances in SGD or USD, helping businesses to offset costs or loan repayments.
Thinking of giving ANEXT Bank a try? You’ll be glad to know that you can open a business account with S$0, and there’s no setup fee, no annual fee, and no minimum balance to maintain. Free-and-easy with no commitment in every sense.
ANEXT Business Loan
Startups and small businesses can tap on the ANEXT Business Loan for fuss-free financing up to S$500,000. No collateral is needed.
What makes this business loan truly attractive is that there are no charges for early repayments, a low, one-time facility fee of 1% of the approved loan amount or S$200 (whichever is higher), and market-competitive interest rates – all features that allow you to put more of what’s borrowed into your business.
Choose from two repayment options, as follows:
Pay-per-use
This repayment option allows the business loan to function as a credit line, which you can draw down at your own pace over up to 6 months. During the term, pay only the monthly flat fee, and the principal becomes payable only at the end of the month. Recommended for businesses who require flexible funding to meet seasonal demand.
Pay monthly
Choose this option for a traditional monthly instalment loan for up to 5 years. Priced at affordable interest rates, you can pay down your principal and interest over fixed instalments. Ideal for steady repayments with no surprises.
Unlock next-level business banking with ANEXT Bank
With cost savings, seamless cross-border money transfers, and flexible features, ANEXT Bank’s innovative products and services are poised to boost your business banking experience to the next level.
More than that, you’ll gain a banking partner that is keyed into the unique challenges of doing business in today’s fast-paced digital landscape, and one that is truly invested in your success.
Remember, signing up for an ANEXT Business Account is free, and neither are there any maintenance fees or minimum balances. The ANEXT Business Loan is also one of the most flexible and fuss-free funding options on the market.
So why not give ANEXT Bank a try – it could be just the jolt your venture needs to kick things into high gear.
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