Crowd Sourced Funding launches
Crowd Sourced Funding launches 19 October 2018
Crowd Sourced Funding Equity Raising for small proprietary companies is now available in Australia without requiring a proprietary company to convert to an unlisted public company.
The UK, Europe, USA, Canada and New Zealand have been allowing their private companies to utilise
- A fast-growing ambitious business
- A business that wants to expand
- A company that wishes to acquire other businesses
- A company with a “big audacious idea” that could be successful but the directors need to ensure that a Business Plan, Budget and Cash Flow Forecast is prepared for the audacious idea and that the deal stacks up
- The company may have large debts financed on other people’s assets. The benefactor may require the title deed back – the company could consider raising capital to pay out the loan, return the title deed and save interest payments and any “tension” from utilising someone else’s asset to borrow funds for a business can cause.
- The company may have a succession issue because the founder has reinvested all of the profits back into the business over the years with the very little been contributed to a superannuation fund. However, the strategy could be to encourage a child or other family member to take over the business but there are insufficient funds available to give the founder access to money.
- The company may have developed new products, processes or services but is unable to present itself as a company that might be able to raise capital as an ESIC because of the company’s age, expenditure or income. In this
caseraising capital as a funding company could be a solution.
- A company with a CEO who has an exciting vision and the determination to implement that vision.