Applying For Funding

Why To Apply For Funding?

Business start-ups and expansions will always cost considerable amounts of money, be it on a large scale or small scale. Not everyone has access to such finances, and will have to look at funding options. However, before starting the search for government funding opportunities, you need to have a clear idea of what you plan to do after receiving the funds, and how you intend to repay the funds (should you need to).

Some tips to consider before looking at funding options

First off, a realistic approach in considering how much financial injection your business actually needs, has to be undertaken. Always remember that you will be the one making the repayments, so bear in mind to only take what you know you can afford. By having a good business plan, with budgetary forecasts and schedules, it should give you some indication of how much grant funding you require.
At the same time, get some advice from professionals such as your accountant and solicitors, before and after your business plans and funding proposals are ready.

What types of funding are available to me?

Here are a few of the more common funding options available for business owners today:

• Bank Loans – Loan products include term loans, credit lines (also called equity loans) and fully drawn advances. Loans are a good choice when the funding you are looking for is to be used on the long term, or for start-up capital requirements. The interest charged on longer termed loans are lower than some other commercial banking options, which make it a viable option.

Call 1800 733 437 For Complete Information On Accessing Grant Money.

• Overdrafts – This funding option is used for short-term financing when your business’ cash flow is in need of a quick injection. Despite it’s attractiveness as a quick option for finances, some security is expected from the bank, and a credit assessment of your business will be run by the bank. You can, however, opt for an unsecure overdraft, but the interest rates will be considerably higher. Overdrafts have a limit and if you breach the limit, you will once again be charged more interest. If you use an overdraft for the main purpose of a financial buffer, than you should be able to bring the overdraft back to a zero within a year.

• Government grants and Funding – For those businesses who are starting-out, or are looking at further expansion, another option always on the cards are government grants and funding. With a sound business plan, good budgetary forecasts and other pertinent information requested, you may very well get some funding from the government to support your business endeavour; without any repayment. Government grants are generally available in almost every country in the world, especially in the giant economies such as the United States, Australia and the United Kingdom.

• Investors – Venture Capitalists, Equity Partners and Private Backers are examples of investors that can be sources of funding for your business. They have the liquid assets that you need, and your work to get them to give you some of that liquid assets is to tell them what kind of financial returns they will see and in what kind of timeframe. Getting someone from the same industry as your business would be helpful as they would have a better understanding of what they are actually funding.

• Share Ownership or Equity – This is where you turn to your employees as funding options. They pump in money to the company in the form of share purchases, and in result they share in the company’s profits eventually. It’s a good source of funding, and it also gives your employees a sense of ownership, driving them to work harder in the end. Be sure to have the shareholders’ agreement put down legally though.

Call Toll Free 1800 733 437 To find out more