What exactly is the funding for?
Separate tax liabilities, operating working capital, project mobilisation, equipment and growth expenditure. Different purposes can require different evidence and structures.
Is the pressure temporary or recurring?
Funding may be more useful when it bridges a defined timing gap than when it simply delays an unresolved operating loss. A cash-flow forecast can help identify the distinction.
What is the repayment source?
Ask which future cash receipts are expected to service the facility and what happens if those receipts are delayed.
What existing obligations matter?
Existing secured facilities, leases, tax liabilities and creditor arrangements may affect both affordability and structure.
What professional advice is required?
Tax advice, insolvency/restructuring advice and legal advice should be provided by appropriately qualified professionals. A funding provider should not be positioned as a substitute for those advisers.
How should a referral relationship work?
Any formal referral arrangement should be transparent, appropriately documented and reviewed for applicable licensing, conflict and disclosure requirements before launch.
Sources and further reading
- https://business.gov.au/finance/cash-flow/set-up-a-cash-flow-statement
- https://www.asic.gov.au/for-business-and-companies/business-basics/small-business-resources/
General information only. This material does not constitute legal, tax, credit or financial advice. SME Capital Partners is in pre-launch and is not currently offering or approving credit through this website.