Starting a small business is expensive. Owners may require external capital to supplement their own funds. Sufficient working capital is a key element to meeting financial obligations.

Raising finance can be challenging for small business especially when the business has only a short trading history. This will make it impossible to start, run and grow a business.

Getting through this issue is a challenge.

Start with these three steps:

• assess your financial needs
• prepare a financial plan
• assess your funding options –
1. Debt or equity funding
2. Borrowing from financial institutions
3. Other sources of funding.

For more information, the Australian Bankers' Association (ABA) and CPA Australia have partnered to provide small businesses with information on applying for loans and how to deal with debt:

• download Applying for a loan fact sheet
• download Small business and dealing with debt fact sheet
• visit the Small Business Banking website.