Solutions

How much do I need and what can I afford?

This section will help you work out how much money you need, how you’ll repay it, and over what time frame.

How do I work out my set up costs?

We can help you work out all the costs involved in starting a business including:

• Setting up the business (accountant, solicitor, licenses and permits, insurances)
• Setting up the premises (initial rent and security bond, office furniture, fit out, utility bonds and connection, stationery and office supplies)
• Plant and equipment (vehicles, machinery, computer, printer, scanner, telecommunications)
• Starting operations (initial stock holdings, working capital, health and safety equipment, advertising).

Read the Cost of setting up a business to help calculate the set up costs of your business.

What about the money I need to run the business?

The money you need to run the business is called working capital. It covers expenses like paying your suppliers, covering the gap in the time it takes for customers to pay you, and general operating expenses including paying yourself and tax liabilities.

Calculate these expenses and make sure you give yourself a good buffer - a lot of businesses get in trouble because they don’t have enough working capital. To learn more about managing your working capital and various solutions for making it easier, refer to Managing my cash flow.

Review your options

Compare all short term finance options.

So how much can I afford to borrow?

This is the big question. To answer it you will need to think about how much income the loan will generate for your business and consequently your ability to cover interest and costs, and to repay  the loan.

You should incorporate these findings into your business plan to support your application.