The team behind National Brokers Network helps entrepreneurs enhance their business’ value. Today, our team is excited to share the great news to small and medium-sized enterprise (SME) owners looking for the right opportunity to grow. If you are one of them, then know that you can now possibly get support from the Australian government and the country’s big four banks.
According to an article published by The Sydney Morning Herald, qualified Australian businesses will finally have access to financial assistance that can fund their growth. That is made possible by the government-created special fund aptly called the Australian Business Growth Fund (BGF).
ANZ, Commonwealth, NAB, and Westpac banks each matched the government’s pledge by contributing $100 million to the aforesaid fund, as specified in the same report from The Sydney Morning Herald. Additionally, HSBC also committed to investing $20 million into it. Moreover, as noted in an article from The Adviser, this financial assistance will be provided to eligible businesses over five years.
With the money, SMEs will not only be able to invest in new technology, expand their operations, and employ more people. Rather, the substantial growth in their industry will also translate to a better economy for Australia.
Officially launched last 27 November by the Treasury at the Australian Chamber of Commerce and Industry, the BGF aims to help SMEs realise their full potential, The Adviser specified. The report also stated that qualified businesses can take advantage of long-term equity capital investment amounting to anywhere within the range of $5 – $15 million. For their part, SMEs must be able to prove three years’ worth of growth and profitability. Apart from that, they must also have an annual generated revenue amounting to somewhere between the range of $2 – $100 million.
Previously, the SMEs’ chances to secure long term capital are slim if not non-existent. However, through the establishment of BGF, they can now reach greater goals while maintaining a controlling interest in their respective businesses. That is because the fund will only take a minority stake of between 10% – 40%.
SMEs, through the BGF, can also expect to receive non-monetary assistance in the form of network referrals and strategic advice. Moreover, the government is still exploring ways to attract other financial institutions to take an active involvement in the initiative. That can only increase the benefits that SMEs will be eligible for.
The BGF is a welcome development with a wide-ranging impact not just to the sector, but also to the country in general. Its timing is perfect too as it was presented at a time when access to affordable capital has been elusive to SMEs. What was then an almost impossible challenge to overcome has been affecting the country’s economic progress as well. Fortunately, the BGF has signalled the beginning of a new and promising chapter for the SMEs and the country as a whole.
Taking advantage of this fund will significantly affect the value of your business. For a more accurate assessment of your business’ worth, reach out to our team for expert assistance. You can contact National Brokers Network through any of the following means: phone: 03 9226 9222, fax: 03 9078 6315 or email: email@example.com.