Capital Finance secured and unsecured business loans from $10k to $5M
A helping hand for Australian SMEs
Import – Export | Hospitality | Medical | Construction | Manufacturing | Agri-business | Retail
Capital Finance for Small Business
Capital is money that is used to generate income or make an investment to expand your business or invest in new opportunities. Capital finance can be secured by the underlying asset, or unsecured such as equity or bonds issued by the company, also against the business turnover such as accounts payable and receivable.. Accrutus Capital facilitates multiple capital finance options that suit your stage of growth
Smart business owners will implement both a short term and long term capital finance strategy to navigate the cash flow highs and lows while driving sales. Understanding how and when to use asset backed capital finance is important while protecting your personal assets.
for expansion, acquisition and development
Capital Finance for profitable companies
Capital finance is sourced from private lenders and investment firms. Companies can issue debt securities to raise finance from $2 to $5 million as a small-scale offer for property projects such as land acquisition and stage one construction
Ideal for established companies with $1 to $10 million turnover
Use capital finance while waiting on outstanding customer accounts
- creditor and debtor invoice finance
- professional fee funding solutions
- working capital to pay SUPER or BAS
- short-term loans for new projects
Capital Finance via alternative lending
Getting the right financial product for your small business is important. When seeking capital finance perform a worst case funding scenario and costs analysis against current sales and projected revenue to calculate capacity. Understanding which capital finance options suits your growth stage and industry type will improve your chances of approval and minimize strain on the business.
What is the difference between loans, cash advances and factoring?
The biggest difference is cash advances and factoring are not loans, they are an advance against your current and future sales. The main advantage of alternative capital finance is flexibility and simplicity, requiring fewer documentation over banks. Time is money and fast access to alternative capital finance can prevent financial disaster. The wrong finance facility can cripple your small business and further impact your capacity to borrow in the future. More information on our FAQ page.
FINANCING SMEs and ENTREPRENEURS 2017 OECD REPORT
The Australian Bureau of Statistics defines SMEs as firms employing 0 to 99 employees. In 2014 and 2015, credit to SMEs rose at a relatively high rate, continuing the growth which occurred since 2007.
The average interest rate charged to SMEs is high compared to most other OECD countries, but has come down by 3% points between 2007 and 2015. The relatively high interest rate charges to SMEs is at least in part, due to Australia’s relatively strong economic performance and hence, relatively high cash rate. The interest rate spread between loans to SMEs and to large firms increased during the financial crisis and has remained higher since. This, at least in part, reflects a reassessment of the riskiness of SME lending.
Venture and growth capital investment increased by 11% between 2014 and 2015, with 2015 levels well above their pre GFC crisis value.
Leasing and hire purchase volumes rose by 18% in 2015 to peak levels. Factoring and invoice discounting volumes increased significantly during the financial crisis but show no clear trend after this period.
Bankruptcies rose slightly between 2014 and 2015, but are at lower levels than in 2007 and 2008. Non-performing loans as a percentage of all business loans decreased to 1% in 2015.
The Australian Government has a comprehensive SME agenda aimed at promoting growth, employment and opportunities across the economy. Its policies for promoting SMEs focus on reducing red tape, improving the operating environment for business and increasing incentives for investment.
In later 2005, the Australian Government announced a new Financial System Programme which will support SMEs access to finance by creating a more resilient, fairer and innovative financial system. In includes commitments to remove legislative impediments to the development of a crowd-sourced equity funding market, and support industry efforts to implement the comprehensive credit reporting regime. As part of the program, a review is being undertaken into data accessibility and use.
In later 2015 a suite of new tax and business incentive measures was announced under the National innovation and Science Agenda, including tax concessions for early stage investors in innovative start-ups. In addition, the 2016-2017 budget included a commitment to progressively reduce the tax rate of small business from 28.5% to 25% over time.
Source: Financing SMEs and Entrepreneurs 2017 OECD Report (country snapshot Australia)