When applying for equity finance businesses will invariably incur cost seeking the input of experts to ensure that the likelihood of raising funds is maximised. However businesses seldom seek expert assistance when applying for debt finance. Having an experienced banker assist you in putting together your story in a way that is extremely compelling for a bank is valuable, especially in this environment, and will maximise your chance of success. Often these experts will not actually cost you anything as they will be accredited brokers with the recipient banks and will be paid commissions by the banks for your business.

2) Government Grants
There are over 300 grants available to Australian Businesses from the government to encourage businesses growth and prosperity. Speak to an expert (eg Grant Ready) about whether your business is eligible for any of these. These experts might take a percentage of the grant for their assistance, but they will maximise your chance of obtaining one, should there be one that fits you and your business.

3) Debtor/Inventory Finance
Historically when a business needs finance, it goes to the bank and asks for a loan, and this loan is secured by business assets, but backed up by personal security. Without bricks and mortar banks have a limited appetite to lend against business assets (generally deeming this to be an unsecured proposition). However most lenders these days have a debtor finance product where they will lend a business up to 80% of the value of invoices provided to customers, secured for the most part by these invoices. There are intricacies re concentration of debtors and collection performance, but on the whole these are very effective facilities for businesses that are growing fast and enduring large working capital strains due to trading terms with customers. A broker can assist you to determine whether this is a reasonable proposition with a financier.

4) Family and Friends
Whilst some might not be positioned to do so, do not undervalue the prospect of seeking assistance from family and friends. This can be a cheap form of finance, though the emotional risk of business failure and the consequences on these relationships needs to be dealt with proactively. Formally documenting such relationships is important, to minimise the risk of misunderstanding and some of the upside to receiving the funds should be considered to avoid jealousies and frustrations that can be natural in such circumstances.

5) Business Angels and Venture Capital
Depending on how important it is to obtain funds, you might wish to consider sharing some of the ownership of the company. These relationships can vary in terms of control of the business required by the investor, and the amount of additional value add that the provider can offer, including broadening your network for sales opportunity, or helping set up alliances that might reduce operating costs. These relationships can be incredibly powerful, and there is still a significant amount of personal wealth available to be tapped in to. Most business advisors would know of avenues to obtain such funding.

6) Personal Funding
Depending on what and how much the business needs, it might be possible to cover the funding gap in the short term using personal financing options. Equity in your home loan can be accessed either by home loans or in some instances reverse mortgages. Credit Cards are also relatively freely available, though an extremely expensive form of finance. The important thing to realise as a business owner offering personal assets is that if the business fails, you will lose these assets. Speaking to your accountant and lawyer can help minimise this risk but unless you are very much in control of the business and its destiny I would be reluctant to volunteer personal assest unless the reward significantly exceeds the risk of the proposition.

It is important to note that banks are still lending money, and whilst down 15percent on preceeding periods, new business loans below $2m still totaled $19.3B at the end of June. Bankers still have sales targets and bonuses that rely on profitable business being written. But the credit departments have a close eye on quality. If obtaining finance is a struggle, talking to an experienced banker is likely to be a good first port of call.