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There are many financing options available in the market today, ranging from short-term borrowings, to medium/long-term borrowings and equity capital. The type of finance you select will depend on your growth plans, cash flow, desired company management structure, and a range of other factors.

Westpac Relationship Managers can work with you on the type of finance that will help your business grow, at a cost that suits your individual objectives and that your cash flow can handle. Whichever funding route you choose remember your overall objective is to grow your business.

Generally speaking the longer the term of your borrowing, the cheaper the finance tends to be, with the additional incentive that the interest is tax deductible. Long-term finance (term or equipment finance) can be utilised for a large purchase. When using long-term finance you will need to ensure your growth plan will generate the cash required to cover the costs of your loan. Another option to fund company growth is equity finance - in which you give up a share of your company in return for finance.

If your business trades internationally, an extended and more complicated trade cycle can put extra pressure on your access to working capital. For example, if you are importing goods to be resold there is likely to be a significant period between paying for the goods and on-selling them. Short-term finance can ease this pressure, and the most popular options are trade finance and foreign currency trade overdrafts.

To find out more about the different financing options available read the full article in Good Business, issue 2, 2004 (PDF 53kb).

To contact a Relationship Manager or for more information call 1300 730 408.