As mentioned earlier, you’d have several incentives to be enjoyed from starting your new business in the Kingdom of Thailand. The country, as a member of the Association of Southeast Asian Nations (ASEAN), has now become friendlier to foreign investors in addition to tourists.
First things first, however – how do you get the funding you need to get the enterprise off the ground?
Here are some ways that you can obtain financing for your new business, based in none other than the Kingdom of Thailand.
Prepare Your Paperwork and Collateral
In order to qualify for a loan, you will need to demonstrate your capability to pay. You can use your personal loan record to fund your business, but that’s risky given the uncertain nature of business.
Use your business name instead. It’s a different entity altogether. Of course, the same rule applies. How can you demonstrate that your business can settle its obligations? You should prepare the following paperwork to present to the creditor:
- Business plan
The business plan is the most solid document that you can present to any credit agency or bank. It shows how you plan to tackle the challenges of the financial landscape, to maintain your company’s financial health, and how you plan to avoid bankruptcy. - Incorporation papers
Papers showing your company’s registration will prove to the creditor that the business does exist. This will strengthen their faith in your company to settle your financial obligations on time.
This is a bit of a risk, but having something that you can secure your business with can hasten the approval process. For instance, a construction business that seeks to expand into Thailand can use one of their heavy equipment as collateral against the loan.
Seek Out Creditors
Armed with your papers, you can now seek out possible creditors. Because you’re a foreigner, the process of getting a loan for a business in Thailand can be quite different, and a little stricter.
Your first option is to approach banks in your country of origin for a loan that you can then convert to Thailand Baht. Creditors do have to perform background checks on yourself, and your investors. If you borrow at your home country, that process can be expedited and your chances of being approved higher.
If you want to borrow from Thai creditors, you might want to consult legal advisors and financial experts in the Kingdom. They can offer you the best advice that you can use to navigate the relatively complicated processes of securing financing for foreigners in Thailand.
This advice includes the paperwork that you need, in addition to your business plan and registration papers as mentioned above. These local consultants can identify exactly what other paperwork that you need to prepare in order to improve your chances of getting approved for business financing.
All in all, it’s not impossible to get financing for your planned business in the Kingdom. There are ways that you can increase your chances of being approved for a loan. However, you will, of course, need to do your research before you start moving.
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