Dried Graze

I have a business idea that requires some initial startup funding. As a newly arrived expat with no real collateral to speak of and I guess no credit rating, is it going to be an impossible task to secure funding?

What conventional methods are worth pursuing and are there any unconventional avenues worth considering?

Has anyone else been in a similar position?


All thoughts ans suggestions welcome...

Deer Hunter

http://www.ausindustry.gov.au/conten...ogies%20(comet)

(if it's tech related)

Dried Graze

Thanks but it's quite low tech.

Deer Hunter

Google Victorian grants. There are hundreds so you should be able to find one you fit the criteria of Good luck mate.

Dried Graze

Thanks, I have a list of the various Vic Govt funding options but guess they could take months to process. I should have mentioned that I was looking for something fairly soon.

I can't see a bank refusing help if I submit a good business plan but I could be totally wrong given personal circumstances ie Expat, visa type and lack of credit rating etc.

I was hoping that others may have had some similar experience that they could share.

DrWho

Have you been in business yourself before in the UK...? Bank/Accountant/Solicitor references...? Won't cut it much but better than nothing...

Sounds like you need a business partner maybe, not a bank...

Dried Graze

A partner might have been an option if I had an equal share of the finance to contribute but I don't like the sound of someone else having a greater stake than me.

thebears

Just bear in mind any one offering you funding isnt doing it for the love of friendship. 50% of something is better than 100% of nothing.

Most lenders want to see you are putting in a higher risk than themselves ie you are working full time on the project (and have sufficient personal funds to support yourself during start up phase). Unless the business plan has both an exit plan and realistic profit projection and cashflow you are unlikely to be taken seriously by anyone (bank/lending institution/govt dept/other sources).

If you are also coming with limited or no business experience they will be wanting someone alongside you to ensure the business succeeds.

Kiwi

DrWho

I think you might have a problem. Banks are risk averse at the best of times, let alone with someone they don't know who has no track record and no money...!

I would say your only chance is with an outside investor, and even then you'd be giving away at least 75% of the share capital together with all sorts of ongoing financial conditions. Sorry...

Dried Graze

I am well aware of this obvious fact. As stated previously, if any partnership was on the cards, I'm guessing it would be on a 50:50 basis or greater on my part. Having said that, I suppose it would depend on many factors yet to be determined.

Again, this is obvious and I could't imagine anyone going to ask for money by simply pitching 'oh please, it's a really good idea'.

Certainly as far as Government small business startup goes, my initial research tells me otherwise that this isn't necessarily the case. You may have the support from a mentor or some other such suitably experienced bod but this would be more than welcome.

I do have some business knowledge which is applicable anywhere but I am really looking for ways to apply it locally.

For instance, in the UK I would approach a bank once I am happy I have a comprehensive and well polished business plan and knowing British banks, know that I will more than likely secure finance.

However, this is not the UK and don't know how things are done here. Will the lack of credit rating in Aus or the fact that I'm a new arrival have any real impact, even with the killer business plan?

Have other expats been able to secure credit so fresh of the boat?

Dried Graze

Thanks for the replies. While writing the last post I came up with a solution that might suit my circumstances.