Posted: 24 August 2020

Crowd Sourced Funding Expected To Be In Demand In 2020/21

Empowering SMEs (Issue 072)

Greetings from ESS Small Business – Our best wishes to all SMEs in Victoria. We are thinking about you.

Concerns About Business Funding From 1st October 2020 Onwards

Whilst the Australian government has announced that the Coronavirus SME Guarantee Loan will be redrawn and applications enabled until 30th June 2021, a $1 million maximum loan for a period of 5 years, with the money being able to be used for any business purpose, there is still an expectation that many businesses will have difficulties in negotiating with banks for new funding facilities from 1st October 2020.

For those businesses that are requiring funding for business expansion, Crowd Sourced Funding Equity Raising could be the ideal platform on which they could seek funding.

In our next COVID-19 Survival Panel webinar for SMEs on Wednesday, 2nd September 2020, Joseph Barry the Marketing Manager of Capital Labs (a Crowd Sourced Funding Intermediary) will outline his company’s views on the marketplace opportunities for companies with turnovers under $25 million per annum to access the crowd sourced funding market and raise up to $5 million from the public in a 12 month period.

Capital Labs offer a full advisory service to companies looking to raise funds. Capital Labs has expertise available from financial people as well as science and technology experts and seeks to gain an understanding of the impact that a company’s innovation will have on the world.

Capital Labs is powered by the IQ Group Global, a group of companies that work together to find, fund and develop discoveries into life changing innovations and take them to the people who need them the most.

Capital Labs is seeking conversations with strong businesses that will have a positive impact on the world and work with the investors who want to take an active role in making a change on the issues they care about.

If you are interested in finding out more information about how Capital Labs can assist small/medium-sized companies to be able to raise capital from the Australian crowd sourced funding market, this is your opportunity to hear from a crowd sourced funding expert.

Crowd Sourced Funding Advisory Expertise Available Around Australia

ESS BIZTOOLS has assembled a group of accountants located around Australia who are utilising the ESS BIZTOOLS' Crowd Sourced Funding Equity Raising Product Package to assist them to give professional advice to their clients relative to an understanding of Crowd Sourced Funding Equity Raising and, if the client is interested, assisting in the preparation of the company’s Business Plan, Budgets, Cashflow Forecasts and coaching directors and leadership team members of SMEs on how Crowd Sourced Funding Equity Raising operates and what the directors' and leaders' responsibilities are if the company wishes to access this funding source which can produce up to $5 million in a 12 month period with capital raising direct from the public via a Crowd Sourced Funding Intermediary.

For companies to access crowd sourced funding they will need to have a Board of Directors and a leadership team who have a business model that they are keen to develop and expand and would like to attract investors to invest in their company to assist with supplying the finance to enable their business vision to be developed.

One significant advantage of Crowd Sourced Funding Equity Raising is that a company does not have to offer an asset as a security, nor are there personal guarantees required from the directors or a monthly cashflow drain in the payment of principal and interest repayments to a bank.

There is a percentage of the company which will be transferred to the crowd sourced funding investors in return for the cash that they have contributed to the company to enable the company’s vision to be developed.

One way to look at Crowd Sourced Funding Equity Raising, from a current shareholder's point of view, is that crowd sourced funding assists in wealth creation for the current shareholders because the addition of cash to the company’s resources, if invested wisely, should lead to greater value for the company and, as such, to the individual shareholders.

In this webinar Peter Towers, Managing Director, ESS Small Business, will comment on the processes that businesses need to implement to be able to utilise crowd sourced funding to raise funds for their business.

Free Webinar Invitation

You are invited to register for this free webinar to be presented on Wednesday, 2nd September 2020 at 12-noon AEST by clicking here or going to the ESS Small Business website > Webinars.

Tradies' Charge Out Rates and a Corporate Governance Overview

In the last webinar for SMEs on 19th August 2020, Kevin Thiele, Director, Working Better, an experienced Management/Cost Accountant discussed the strategies that tradies can implement to ensure that their charge out rates will be sufficient to generate a targeted salary and profit for their endeavours.

Peter Towers, Managing Director, ESS Small Business, gave an introductory overview of the concept of Corporate Governance, particularly as it related to companies.

If you would like to listen to the recording of the webinar presentation featuring Kevin Thiele and Peter Towers on 19th August 2020 please click here.

The PowerPoint slides used by Kevin Thiele and Peter Towers are available if you would like to download them - please click here.

We would like to invite you to visit the ESS Small Business website > Survival in Difficult Times > Learn More where you will find details of the products ESS Small Business has developed to assist small businesses and medium-sized enterprises to gain a better understanding of strategies which will assist you to survive in your business during 2020/21.

If you are interested in gaining an in-depth understanding of the concept of raising capital direct from the public, as a Crowd Sourced Funding Equity Raising Company or an Early Stage Innovation Company, you are invited to contact us for a short overview discussion – please contact me: