Funding Strategies: Balancing Debt, Equity, and Grants for Sustainable Growth

Securing the right mix of funding is one of the most critical decisions for determining the survival of a business, especially in Singapore’s competitive SME landscape. Whether you are looking to scale, invest in new capabilities, or strengthen your working capital, the right funding strategy must strike a balance between debt, equity, and grants because each financing option will have different implications for your business’s cash flow, ownership, and long-term goals.

Understanding the Funding Landscape

Debt Financing: Loans & Credit Lines

1. Debt financing offers fast access to capital without giving up equity. Common sources include:

• Bank loans (term loans or working capital loans)

• Trade financing

• Revolving credit facilities

• Private lenders or alternative financiers

1. When to consider: Stable cash flows, short-term or medium-term needs, or asset-backed growth.

2. Watch out for: Interest cost, repayment pressure, and debt

Equity Financing: Investors & Shareholders

1. Equity investors contribute capital in exchange for ownership. This includes:

• Angel investors

• Private equity & venture capital

• Corporate investors

1. When to consider: High-growth potential, long runway to profitability, or when strategic partnerships are beneficial.

2. Watch out for: Shareholding dilution, changes in control, and investor expectations.

Government Grants & Support Schemes

1. Singapore offers a range of non-dilutive funding options:

• Enterprise Development Grant (EDG)

• Productivity Solutions Grant (PSG)

• Market Readiness Assistance (MRA) Grant

1. When to consider: Capability development, market expansion, technology upgrades.

2. Watch out for: Eligibility criteria, co-funding requirements, and documentation.

Our Value Proposition: More Than Just Capital

Morrison Consultants go beyond basic fundraising as we partner with you to develop a funding strategy that aligns with your business vision, financial health, and long-term scalability. Here is how we help:

Financial Modelling & Scenario Planning

1. We develop robust financial models tailored to the expectations of lenders, investors, or governments by covering forecasts, valuation, cash flow scenarios, and allocation of funds.

Investment Storytelling & Pitch Deck Development

1. A compelling narrative drives funding success. We can help you in respect of:

• Crafting your investment story

• Design investor-ready pitch decks

• Highlight key differentiators and growth plans

High Level of Exposure to Various Funding Channels

1. You can gain access to our network of:

• Banker or Relationship Manager for loan application

• Private lender for short-term or alternative capital

• Equity investor for growth capital

• Business advisor from SME Centres for grant support

End-to-End Advisory

1. From pre-funding assessment to post-deal compliance, we guide you through every stage including documentation, presentation, and deal negotiation.

Building a Sustainable Capital Structure

Rather than focusing on raising funds only, it is more important to raise the right type of funds, at the right time, from the right source. Morrison Consultants can help businesses:

• Avoid over-leveraging

• Minimise dilution

• Optimise capital cost

• Align funding to strategy

Ready to Unlock Growth Capital? Or Looking for Expert Support with Your Fundraising Initiative?

Whether you are raising your first round or refinancing for expansion, our team is ready to support you with strategic insight, technical depth, and trusted industry connections. 

Contact us today for a complimentary consultation on your funding strategy.