Financing your Tourism Business
Working out how much finance your business needs, sourcing capital and managing your finances are important considerations for small business. Funding can assist with business start-up, expanding your business (from minor additions through to major redevelopment), or with implementing specific projects (e.g. product development, staff training).
Funding can be sourced from a variety of different avenues such as:
- Banks
- Building societies
- Credit unions
- Finance companies
- Australian, state or local government agencies
- International agencies
It can take many forms, including:
- Loans for businesses, community organisations, employers, registered training organisations or individuals
- Overdrafts
- Grants (which are usually one off funding provided by an organisation or agency)
- Programs (which are usually an ongoing source of funding provided); and
- Partnerships
If you think that a Grant will be able to assist you with your business it is important to remember that you will need to commit time to prepare your submission and if successful time to satisfy the reporting requirements.
There are five critical factors that should be considered when determining which finance option is the best:
| Assessment factor | Issues addressed |
|---|---|
| Character | Honest, reliable, trustworthy Integrity Creditworthiness Track record, if any, in business Business skills and acumen |
| Capital | Financial strength Quality of assets Liquidity of assets Debt-equity ration |
| Conditions | General economic outlook Conditions in your industry Implications for profitability and debt servicing capacity |
| Capacity | Ability to service the loan and meet other commitments Ability of your business to withstand a setback Your capacity to manage the business profitably |
| Collateral | Your willingness to pledge security Nature and acceptability of security offered Adequacy of security |
You should also consider seeking advice from a professional business advisor, accountant or solicitor.
Tourism Assistance Database (TAD)
Queensland Tourism Industry Council (QTIC) and Tourism Queensland (TQ) have joined forces to pool the listing of tourism specific funding opportunities into one locality. The Tourism Assistance Database (TAD) provides updated information on available funding programs and sources of information and advice relevant to the tourism industry.
The Tourism Assistance Database provides:
- Information on relevant funding programs and grants for the tourism industry
- Advice, hints and tips on submitting a funding application
- A search tool to help find grants relevant to your organisation
For more information please visit: tq.com.au/resource-centre/industry-assistance/ and click on the ‘Financing your Tourism Business’ tab to locate the Tourism Assistance Database.
