One of the biggest headaches for small business owners is money - where it’s coming from and where it’s going. Your small business needs money to start-up and to grow, but where will that money come from? There are a few different options out there for financing your small business - this month, we’re taking you through four of them: bank loans, non-bank loans, government grants and crowdfunding.
Bank Loans
Banks are getting good at offering a lot of support to small businesses. Banks like Commbank and ANZ offer a variety of tools and resources to help you start and manage your business. There are many different products available for small business owners, from loans and credit to overdrafts and business car finance.
Non-bank Loans
If banks aren’t for you then you might want to have a look at Ziploans, Spotcap, Capify or Prospa. These providers offer short term unsecured loans and fast approval with no application fees. You won’t have to put your home on the line to get one of these loans, and you can borrow up to $300,000, usually accessed within 24 hours of applying.
Government Grants
There are a number of government grants that may be available to you, depending on what sort of business you are in and whether you are just starting or looking to grow. It’s worth checking out and applying for them if applicable because you could be looking at a significant amount of money if approved. For example, in NSW a small business owner who doesn’t pay payroll tax could receive $2000 for each new full-time position employed in your business. Find out more about government grants here.
Crowdfunding
You may have heard of crowdfunding before - it’s a relatively new concept where you convince members of the community (or ‘crowd’) to fund your small business startup or growth. Basically you just pitch your idea and if people like it then they will give you money. There are many websites that do this but a couple in Australia are:
Crowdfunding campaigns can take a lot of work and there are no guarantees that you will reach your goal in the set time frame. It’s worth looking into but do your research first so that you know what you’re getting into before you start a campaign.
If you'd like to grow your business, Connective Accounting would love to grow with you! Get in touch to find out how we can help you.
Disclaimer: The information provided is for general information only and should not be taken as constituting professional advice from the author. You should consider seeking independent legal, financial, taxation or other advice to check how the information relates to your unique circumstances. Connective Accounting is not liable for any loss caused, whether due to negligence or otherwise arising from the use of, or reliance on, the information provided directly or indirectly.