Just because your business is small, don’t be fooled into thinking there aren’t funding opportunities out there! As nearly all SME owners need to fund the further growth of their business at some stage, be it to cover additional staff, new equipment, product development or marketing campaigns, we have compiled a list of funding options available to small to medium sized enterprises. 
 

• Look at all the funding options available and choose what best suits your business and your long-term goals.
• Bank loans are a good option if the business has a good trading history
• Also consider what government funding is available. There are a number of targeted government assistance programs such as the “COMET” program for product innovation and commercialisation, and export assistance programs.
• Consider debtor finance as an option. This finance assists businesses in managing cash flow by reducing the time the business has to wait from the time of purchasing the stock, or providing the service, until the receipt of cash.
• For a fast growing business, equity finance is something to consider. An equity investor will usually be willing to acquire equity in the business (e.g. shares) and commit to the investment for a number of years without expecting short-term returns. However they will require a relatively high return on exit.
• If you are thinking about an IPO get a “reality check”. Start planning years ahead and make sure you clearly understand the requirements and the disadvantages as well as the benefits.
• Make sure you assess the tax implications of loans. Seek advice from a Chartered Accountant or a registered tax agent.
• Prepare your business plan and financial projections. Have them reviewed by an external party (e.g. your accountant) before you hand them to prospective financiers.
• If going down the equity capital road make sure you choose a source that you will be comfortable with e.g. Venture Capital Investment, Business Angels. Understand what the investors will require from you and what form of exit they will want. Your aims must be compatible.
• If you are looking for someone to provide both skills and cash to the business consider ‘Business Angels’. They are private financiers who provide early stage growth capital. There are a number of business angel organisations including one operate by Australian Business Limited (ABL) see http://www.australianbusiness.com.au/angels 
  
• Learn from others. Talk to people whose businesses have had a similar growth pattern and find out what did and didn’t work for them.