Sources of Finance relating to Collaboration Projects

The main sources of Debt Finance are:

Financial institutions

Banks, credit unions and building societies. Finance can be provided as loans, overdrafts and lines of credit.

Finance companies

Most finance companies offer finance products via a retailer. Financial companies must be registered with the Australian Securities and Investments Commission (ASIC)

Peer-to-peer lenders

Matches people who have money to invest with people looking for a loan. Loans may need to be repaid within a certain time period and interest rates may vary according to the level of risk.

Family or friends

May offer you money as a loan. To avoid misunderstanding it is important to have a formal written agreement specifying the terms of the loan, repayment requirements and terms of interest. Seek legal advice to draw up the loan agreement.

The main sources of Equity Finance are:

Personal finances

Self funding your business from personal savings or sale of personal assets.

Venture capitalists

Professional investors that invest large funds into businesses (as equity) with potential for high growth and profit.

Family or friends

May provide funds in return for a share in your business or as a partnership. Carefully consider this option as a breakdown in business relationships may affect your personal relationships.

Private investors

Also known as ‘business angels’ are generally wealthy individuals who invest large sums of money in a business in return for equity and a share of the profits.

Crowd funding

Raising capital through the collective efforts of a large pool of individuals, primarily online via social media or crowd funding platforms. It allows investors to provide large sums of money in exchange for equity, or small amounts in return for a first-run product or other reward.

Crowd-sourced equity funding

A way for start-ups and small businesses to raise finance from the public. They usually rely on raising small amounts from a large number of investors. Each investor can invest up to $10,000 a year in a business, receiving shares in exchange.


Most government assistance for small business is in the form of free or low-cost advisory services, information or guidance. However, you may be eligible for a grant in certain circumstances, such as business expansion, research and development, innovation or exporting.

The Australian federal government other six grants relating to research & development, innovation and product development for Australian businesses, for non-Australian businesses Collaboration HQ can assist in reviewing what local government or international grants are available for your country of origin.

The six grants available are (there is addition eligibility requires for each grant type and these can be found by clicking the link below or on the small business Development Corporation website

Empowering Business to Go Digital

Applications close: 3 April 2019 5:00 pm AEDT
Provides a successful applicant with up to $3 million in matched funding to establish a non-government organisation to build and enhance small business digital capability and to address issues raised in the Small Business Digital Taskforce report.

Who can apply:
To apply you must:

  • have an Australian Business Number (ABN)
  • be able to establish a not-for-profit company limited by guarantee prior to entering into a grant agreement
Advancing Renewables Program

Provides businesses with funding or finance to develop renewable energy technologies.

Who can apply:
At a minimum, you must:

  • have an Australian Business Number (ABN)
  • be an Australian incorporated entity unless you’re applying for Desktop Studies and Analysis.
Innovation Connections

Provides businesses with access to a highly skilled facilitator, for the purpose of reviewing the business’ research needs. If required, the facilitator will connect the business to expertise within the research sector and help to define a project scope. Up to $50,000 in matched funding support is available to the business, should it choose to fund the project with the recommendation of the facilitator.

Who can apply:
At a minimum, you must:

  • be a for-profit, non-tax exempt company who is registered for GST and operating in Australia for at least three consecutive years
  • have an annual turnover or operating expenditure between $1.5 million ($750,000 for remote Australia and Northern Australia) and $100 million
  • meet our Growth Sector eligibility criteria.
R&D Tax Incentive

Provides a tax offset for some of a company’s cost of doing eligible research and development (R&D) activities by reducing a company’s income tax liability. Tax offsets of 43.5% or 38.5% are available for costs incurred on eligible activities depending on a company’s annual aggregated turnover. The 43.5% benefit is a refundable offset.

Who can apply:
At a minimum, applicants must:

  • be an incorporated company
  • be conducting eligible core R&D activities. These are defined in the legislation as being experiments that are guided by hypotheses and conducted for the purpose of generating new knowledge
  • have incurred eligible R&D expenditure or notional deductions of at least $20,000 (unless using a Research Service Provider or a Cooperative Research Centre).
Cooperative Research Centres Projects (CRC-P) Grants

Provides industry-led collaborations with short term (up to three years) matched funding of up to $3 million to develop important new technologies, products and services.

Who can apply:
At a minimum, you must:

  • be in a collaboration which contains at least two Australian industry organisations including one small or medium-sized enterprise (SME) and at least one Australian research organisation
  • be able to match the funding sought.