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Business Finance Selection Tool |
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Written by Noric Dilanchian
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Friday, 23 February 2007 |
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 In Australia a remarkable variety of types or source of business finance is available. This article sets out a short list in a neat table format.
The table includes finance types such as venture capital, shares, equipment leasing, initial public offerings (IPOs), hire purchase, overdrafts and customer pre-payments.
The table is a tool for business planning, business re-structuring, charting a growth strategy and working out the role of collaborators in financing a business (be they family members, staff, shareholders, venture capitalists, bankers, suppliers, customers and even the Government).
| Finance Type |
Debt / Equity* |
Development Stage |
| Start-up |
Development |
Growth |
Maturity |
Decline |
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Sweat equity
|
E
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•
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•
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Superannuation fund
|
E
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•
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•
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•
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Cash flow / profits
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E
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•
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•
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Angel finance / family
|
D / E
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•
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•
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Corporate investment
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D / E
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•
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•
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•
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Venture capital
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D / E
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•
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•
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•
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•
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Private equity / hedge
|
D / E
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•
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•
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Government support
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D / E
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•
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•
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•
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•
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Customers
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D / E
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•
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•
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Finance company
|
D
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•
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•
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Bank
|
D
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•
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•
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Suppliers
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D
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•
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•
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Leasing company
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D
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•
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•
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Initial public offering
|
E
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•
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•
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E
Q
U
I
T
Y
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Ordinary
|
Long
|
•
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•
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•
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•
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Preference
shares
|
Long
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•
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•
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•
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•
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Redeemable shares
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Long / short
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•
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•
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•
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Options
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Short
|
•
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•
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•
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•
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Convertible notes
|
Long
|
•
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•
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•
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•
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D
E
D
T
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Loans
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Med. / long
|
•
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•
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•
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•
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Leasing
|
Med.
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•
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•
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Hire
purchase
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Med.
|
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•
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•
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Overdraft
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Short
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•
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•
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Bills
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Med. / long
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•
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•
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Mortgage
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Long
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•
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•
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Debenture
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Med. / long
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•
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•
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Subordinated Debt
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Short / long
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•
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•
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•
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•
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Convertible
note
|
Short / long
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•
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•
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•
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Bond
|
Long / short
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•
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•
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O
T
H
E
R
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Factoring
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Short-Med.
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•
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•
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Guarantee
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