How to be successful with grants and start up loans for ABN holders

At any stage of a business lifecycle, a cash injection can be needed to either remain trading or move to the next level of growth. Across Australia there are numerous types of grants and financial options available from state and federal governments along with various financial lenders.

There are hundreds of different types of grant programs offered at any given time. They are provided for a variety of reasons from economic recovery, subsidies, innovation and more. Most grants are based on region, industry, and business type.

In addition to grants, many lenders also provide finance for new businesses along with various recovery schemes in partnership with the government.

ABN Grants For Australian Businesses

For businesses interested in grants, the Australian government has created a tool which highlights different grants, funding, and support programs. They highlight what is currently available, coming soon or closed.

The ABN grant tool is very detailed and easy to use, below are the different filters you can use to search for grants.

• Location: Search nationally or across any state or territory
• Industry: Find industry specific or general grant options
• Business Structure: See what is available based on your business type
• Support Type: With a large range of grant options, see what is applicable to you
• Grant Objective: There are numerous grants that are specific to certain objective, not all are monetary
• Business Stage: Compare grants for start ups or established businesses
• Grant Status: Review which grants are active, closing or opening soon

Access and use the Grants and Program finder here.

In addition to the national grants tool, each state and territory may have its own location based tool or support pages such as the below.

NSW grants information
QLD grants information
VIC grants information
SA grants information
TAS grants information
WA grants information
NT grants information
ACT grants information

ABN Start Up Loans and Finance Options

For businesses that don’t qualify for or are uninterested in grants, there are different borrowing options available from lenders. For new businesses its important to understand that lending options will be limited as the risk for lending to start ups is very high. It is estimated that over 60% of new businesses fail inside of 3 years. Lenders must balance this risk whilst still trying to support new businesses.

Successful finance for young business is based on a few main criteria. This can be summed up by being able to show lenders your business is low risk. Here are things to concentrate on prior to applying for finance.

• Establish stability and growth. Ideally you should have at least 6 months of trading in place and demonstrate solid financials for this period. Lenders need to know that you can make your repayments.
• Being registered for GST is very helpful as it shows your revenue is above $75k a year. If you are not GST registered you can still be approved for finance albeit a lower amount.
• Having a deposit can greatly increase borrowing options (not necessary though)
• Showing assets is another strong way to show stability and maturity.
• Have formal contract(s) in place. Showing that worked is booked greatly improves approval rates

A frequently asked question in regard to starting a new business but off the back of extended industry experience, is that of 1 day ABNs or business continuance. Getting finance under these circumstances is flexible. Borrowers in these situations can be considered stable or less risky as they are staying within their trade of experience which often results in smoother trading.