Interest Free Business Loans
Did you know that you might be able to obtain a loan for your Australian business interest-free?
It might seem too good to be true, but there are several government agencies that offer interest-free business loans. Or, if they’re not interest-free, they have low interest rates or are guaranteed. In fact, for small businesses in Australia, there are over 500 government funding programs that you could access.
How do you find them? The key is to do research and make sure you fit the criteria. You should check out opportunities at the state, regional and local level as well as federal programs. The business.gov.au website offers a search tool that could get you started.
Loans or grants are based on such factors as where you’re located, what your ambitions are for your business, the type of industry, and revenue generated. Information and application forms can be found on the websites of relevant government agencies.
Why do they do it?
It really does make sense for Australia to want to spur economic growth by investing in businesses that contribute to the economy. Loans are also used to increase investment in strategic parts of the economy, for example, the new booming sector of green energy and products. Loans have also been used to offset the damages for farmers of drought, or in very specific situations, like in South Australia in 2016 for businesses affected by the mining company Arrium going into administration. Start-up companies might also be eligible for a boost, as a way to encourage entrepeneurship.
In addition to interest-free loans, agencies such as EFIC (Australia’s Export Credit Agency) will offer guaranteed loans to exporters, and you also may be able to combine R&D tax incentives with a loan.
What are you waiting for?