New funding offered to South Australian early-stage startups

New funding offered to South Australian early-stage startups

A $28 million assistance program has been launched by the South Australian government to encourage growth for the state’s science, research and startup sector.

The $28 million Research, Commercialisation and Startup Fund will target new and existing business and research enterprises in South Australia, with a focus on Lot Fourteen, the former Royal Adelaide Hospital site that will house a new innovation and defence hub.

Chief Entrepreneur for South Australia Jim Whalley said the funds will support activities designed to further build the state’s local startup ecosystem.

“South Australians aren’t short on creativity, what we require is networking and mentoring opportunities and financial support to turn ideas into viable businesses,” said Whalley.

The assistance program has three funding streams. Stream one will support research initiatives that will create innovative solutions or translate research into industry or commercial outcomes that address economy-wide challenges for South Australia.

Stream two provides participants with access to funding to grow their innovative early-stage business and is divided into three pathways: 1:1 matched funding of up to $100,000 to fund a startup’s early stages; 2:1 matched funding of up to $100,000 for early-stage startups partnered with an incubator, accelerator or value-add investor; co-investment of $100,000 – $1 million alongside private funding designed for companies addressing a known gap in the market with significant private investment.

While stage three aims to build South Australia’s startup ecosystem by supporting programs, events and activities that have broad benefit to the startup community.

Minister for Industry and Skills David Pisoni said the fund will be managed by the Department for Industry and Skills to support proposals that build industry research and development in the state.

“The objective of this $28 million fund is to contribute to economic growth by supporting collaboration between enterprises, researchers and universities, and encourage the establishment and growth of startups in South Australia,” said Minister Pisoni.

The fund will compliment the existing Economic and Business Growth Fund and the Regional Growth Fund to drive growth for South Australian enterprises.

South Australia’s Chief Scientist Professor Caroline McMillen said science and research innovation is essential to supporting the emergence of new businesses.

“This Fund will build the talent, infrastructure and collaborations required to attract investment and grow a strong knowledge-based economy in South Australia,” said McMillan.

“We encourage scientists together with their business partners to engage with the Office of the Chief Scientist to discuss how to take up the opportunities this Fund provides.”

Originally published at The Lead by Lizzie Rogers

Trade Credit Insurance for Manufacturers: What is the Benefit?

Trade Credit Insurance for Manufacturers: What is the Benefit?

Most manufacturers wouldn’t even consider doing business without insuring their buildings, machinery and vehicles. But the debtors’ ledger is quite often the largest asset within their balance sheet and can be the most volatile.

Have you ever stopped and wondered what would be the effect on your business if your largest debtor could not pay you? The domino effect of non-payment from one of your largest clients can have catastrophic effects on your cash flow, your ability to pay your creditors and your ability to meet customer demand.

Put simply, Trade Credit Insurance will cover your debtors’ ledger, enabling you to make claims against your policy for customer insolvencies and protracted payment defaults.

So what are the key benefits?

Preserve your profit

On average about 40% of a company’s assets are from the debtors’ ledger, a significant part of your business that should be protected. A bad debt provision is not the answer – it won’t put cash back in your account but a claim paid by your insurer will.

Protect your liquidity and cash flow

Apart from the long-term loss of a customer and future revenue streams, there is the immediate effect on forecasted cash flow. A significant bad debt could even lead to your own business failing or unexpected additional costs. The proceeds of a credit insurance claim will inject liquid funds back into your business.

Confidence to expand

Manufacturers can grow their business in confidence knowing that the cost of potential customer failures is already covered. Trading with a customer you previous felt was too risky now becomes a possibility. You can also be more aggressive in your sales and marketing by extending credit limits and offering longer credit terms with your customers. This will help you compete with other manufacturers that are willing to take on extra risk. Whether you trade with customers domestically or internationally, your customers’ liquidity can be affected by many factors. Political risk in volatile export markets can’t be ignored.

Strengthen your credit management

No matter what credit control procedures you have in place, you can further enhance the quality of decisions made on credit limits by working closely with your insurer. Take comfort in the knowledge that significant market analysis supports every credit limit decision made by your insurer. You can spend less time worrying about venturing into new markets and be ‘in the know’ about the customers you are dealing with. An associated benefit of trade credit insurance is support in collecting overdue debts and rebates on collection costs, together with a review of your current credit procedures and policies.

Add security

Manufacturers can protect their debtors’ ledger and gain access to more efficient financing. Banks recognise trade credit insurance as collateral security when providing financing for local or export sales. When you have run out of ‘bricks and mortar’ to securitise bank funding, using a liquid asset such as an insured accounts receivable ledger, and providing this security to your bank, can lead to additional bank funding. Your shareholders can also appreciate that their assets are being well protected and that financial corporate obligations are being met.

Trade Credit Insurance gives manufacturers security knowing their largest asset is protected and gives confidence to expand into new markets, while cash flow and liquidity is secure.

For further information or a no obligation review of your Trade Credit Insurance needs, please contact Rob Jackson.

 

Rob Jackson BBus MICM

Rob Jackson BBus MICM

Rob Jackson is an Authorised Representative of National Credit Insurance (Brokers).

PO Box 3315, Rundle Mall SA 5000

MOBILE: +61 467 741 207 | rob.jackson@nci.com.au | www.nci.com.au

Authorised Representative No. 001251879