Start-Up Business Funding

When it comes to starting-up your own business, the most crucial question you and everyone else will ask is – where can I get the capital from? Here are some of the most common options that are used for start-up business funding:

• Bank, Personal and Business Loans
• Government grants
• Investment from Investors (Venture Capital)
• Combination of avenues

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

Start-Up:Personal & Business Loans

For any kind of loan taken, there will definitely be an interest charged on it. The interest rates that are set will vary depending on the type of loan you are taking, the current state of the economy, the value of the Australian dollar and the loan provider (lender). Your main point of concern with taking out a start-up business funding loan should be how much you will be repaying inclusive of interest, and whether or not you can realistically afford to keep up the repayments. With this in mind, it is best that you work backwards taking into account how much you can afford for repay each month, then move towards selecting a suitable loan provider for your start-up business funding requirements.

Government Grants

A government grant is generally money granted to you from a government department with no repayment required. Looking for the right government grant however, can be quite time consuming, and may eat up an enormous amount of valuable time that could have been much better utilized working on starting up your business. It is a great option for start-up business funding as it is in essence, free money. One good way to start the search for a government grant is to head to your local city council office or make an appointment with a business advisory centre. From here you can ask for assistance and advice on the best types of grants for your business, and which types of grants you are eligible to apply for. In Australia you may apply for, and receive, multiple grants at the same time from different departments, so it is essential you know all the start-up business funding grants you could be entitled to. In Australia, there are also websites that can help you with the search, these are dedicated database sites listing a few, some or all of the government grants available and where you can locate them, along with the eligibility criteria. Please note that there is always more than 1000 grants available – any website offering information that contains less than this number may be a scam.

Start-Up Business Funding: Investment

From venture capitalists to private investors, these are the people who have the liquid cash ready to inject into your new start-up business. This is probably the quickest way of getting your start-up business funding, but it is also the most definite way you stand the risk of losing part ownership of the business too. Generally, capital investments from an investor will expect profit sharing and dividends, and even a contractual partnership of the business as repayment. Granted there is probably no need to actually physically take out any money on a monthly basis, but you will potentially lose some control on your business and profits will be eaten. If you are comfortable with this arrangement, then indeed investor’s investment will be a good option for start-up business funding.

Funding Combinations

This basically means you will get some of your start-up business funding from a loan, and some of it from an investor, or from a grant; ultimately a combination of funding options. You may garner more funds this way, but you may find yourself straddled between making repayments, and losing some profits that can be used for enhancing your business. It is an option to be considered as well, but one that is not often advised by professionals unless the majority of that combination is via a repayment-free start-up business funding arrangement.

Call Toll Free 1800 733 437 To find out more