Sources

Any business requires investment and there are a number of choices available for funding your business. Depending on the nature of your business and the amount of investment required, you can choose to opt for any particular source of funding for your business. Each of these sources has its own advantages and disadvantages based on interest rates, lending criteria, repayment choices, incentives and their locations and services.

The traditional lending institutions such as banks or credit unions may at times appear to be the most appropriate avenue for business loan based on above criteria. Banks provide finance for both established and start up businesses, and offer a wide range of choices that include lines of credit, overdraft and fully drawn advances. However, they have stringent policy guidelines for sanctioning loan to business houses and will extend their loan only after evaluating the risk profile of your business and possible growth projections.

There is some assistance, not in the form of loan but as grant, available to businesses in Australia from the government. These are also available to small businesses and even start up businesses if your company is involved in a business that falls in priority sector declared by the government. Venture Capital firms also provide an excellent opportunity for funding your business. While it is much more difficult to attract VC funding for a start up company as compared to an established firm, it is not impossible if you have an excellent business idea that is backed by an equally impressive and sound business plan.