Sole proprietors in Singapore can seek funding from investors or apply for bank loans, but they may face more significant challenges than private limited companies. Investors and banks perceive sole proprietorships as riskier due to unlimited personal liability. Funding is often sourced from personal savings or reinvested profits, and alternative options like government grants or microloans can be considered. A strong business case and professional guidance can increase the likelihood of obtaining external funding for a sole proprietorship.