Finance and Cash Flow in Australia

Find out how to raise the money to operate your business in Australia...

Most people are far too optimistic about the prospects for a new business, overestimating income levels (it often takes years to make a profit) and under-estimating start-up costs. Be realistic or even pessimistic when estimating your income; overestimate the costs and underestimate the revenue (then reduce it by a further 50 percent). While hoping for the best, you should plan for the worst and have sufficient funds to last until you are established and profitable. New projects are rarely, if ever, completed within budget.

Australian banks are wary of lending to new businesses, especially those run by new immigrants. If you wish to borrow money for a business venture in Australia, you should carefully consider how and where you plan to raise it. Under-capitalisation is the main reason for small business failures and isn't helped by cash-flow problems caused by late payers.

Grants and Incentives

The Australian government encourages successful business people and investors to apply for residence in Australia, although applicants are generally required to invest at least $500,000 in a business. Business migration schemes provide prospective migrants with a link to professional and commercial advisors. Compare your business prospects in all states and territories, which compete to attract foreign investors and business people with incentives such as cash grants, free advice, loan guarantees and tax rebates. Some state governments publish lists of business opportunities for migrants.

For information about government-backed finance, contact Austrade, formerly the Australian Trade Commission (Tel: 13 2878, local rate). A list of office addresses can be found on their website.

Extract from Living and Working in Australia (7th Edition - 2010) David Hampshire (Available as eBook or order from Amazon) Published by Survival Books Ltd, Survival Books Copyright © Survival Books Ltd All Rights Reserved