Dear Readers,
Welcome to the August 2024 edition of the Funding Strategies newsletter!
From Mark's Desk
"A couple of things we have been speaking about to some of our customers is having a financial “safety net” for their business.
We are seeing a growing number of companies that may not be able to cope if there was an external shock to the business. Examples might be a delay in sales contracts, increases in raw materials / wages costs, delayed payments by a large customer, a change in buying behaviour of consumers, decrease in prices for goods sold or a loss of key staff …
What do I mean by a “safety net”? Essentially it is access to enough cash to “bridge” to another event or situation in the future that is more positive than today. Ie. it helps buy time to resolve the current issues and move forward with certainty. How much cash the business needs will depend on the run rate and the “cash cycle” of the business.
Traditionally a business would have an overdraft and use the overdraft or shareholder funds for such situations, but increasingly we are finding that the shareholders don’t have additional capital and the bank won’t provide an overdraft or “stretch” the current banking facilities. We have seen a number businesses that just don’t have enough cash at bank. These companies typically have increasing receivables, growing inventories, ATO debt … and working capital issues.
How can we help? We put together a funding strategy and executable plan, that might involve a number of stages to give the business time to deal with these issues and fund the business. We help solve the underlying issues while providing additional capital to the business. Quite often we can raise debt finance (either secured or unsecured) to “bridge” to the next event, allowing the business time to deal with the underlying issues and raise further capital. This may involve paying out the ATO for example, so that lower cost finance could be sought … or just providing more cash to operations while working on the business. We also assist with the governance / project management of overseeing the plan.
Please contact us if you know a business that we can assist."
This edition of our newsletter includes:
Client Introductions: Project Luxury Homes, Project Trading, Project Car Share and Project Shopping Centre;
Feedback from our team: Something Fest;
Awards, events and updates: Flora's report, HKABA, ACBC and McCormick Harris Insurance.
Click here to read the full newsletter.
For more information please contact us via email or phone 07 3160 2840.
About Funding Strategies
Funding Strategies is an Australian based capital markets firm providing venture equity capital and finance services to small business and companies seeking capital for growth and expansion in the unlisted and pre-IPO capital markets. We specialise in creating and implementing successful funding and capital raising strategies, both equity raising and debt funding, including quick business loans. We work with predominately private and public companies, and sophisticated investors, with a broad range of services. If you would like more information, please email brisbane@fundingstrategies.com.au or phone +61 7 3160 2840.
Pictured below are Brad Denton, Director Business Development at BlueMount Capital (WA) and Bonnie Shek, Director Australia/NZ HKTDC.
