Accountant's Minute 212
Yes, 19 October 2019 was the first anniversary of the commencement of Crowd Sourced Funding Equity Raising when private companies were able to raise capital direct from the public.
If you have clients who have a turnover of less than $25 million per annum and have gross assets valued at less than $25 million and are not listed on the Stock Exchange they are potentially eligible to raise capital as a Crowd Sourced Funding Equity Raising Company.
An eligible company will need to have a vision, a capable leadership team and a sound business that they could gainfully utilise capital raising of up to $5 million in 12 months to further develop their company.
The introduction of Crowd Sourced Funding Equity Raising for private companies represented the most “significant improvement to business financing” for small businesses and medium-sized enterprises in the last 35 years.
Has your accountancy business been able to take advantage of this most significant change in the services that you can provide to some of your clients?
The 2019 edition of the “CommBank Accounting Market Pulse” identified that many accountancy firms are seeking to “establish a point of competitive difference” for their firms. Being proactive in being able to assist clients to be able to organise their business finances is a significant point of differentiation for accountancy firms.
It’s difficult in the marketplace at present for your clients to be able to organise their finances. Since the Royal Commission banks have been difficult to deal with for a lot of small businesses and medium-sized enterprises. The other problem that many SMEs have is, even if they are offered a loan, finding suitable security so that they can take up the offer of a loan from a bank or financial institution.
Crowd Sourced Funding Equity Raising does not involve any security being offered, personal guarantees or monthly loan repayments. What it does require is a sound business with an energetic leadership team who are prepared to work hard for the benefit of the company and its shareholders.
Crowd Sourced Funding Equity Raising is not for everyone, but shouldn’t you be giving Crowd Sourced Funding Equity Raising a consideration for your clients?
This could lead to a range of interesting professional services – Business Plan – Budgets and Cashflow Forecasts – overview of Intermediary’s role – appointment of an Intermediary – preparation of the Crowd Sourced Funding Offer Document.
To assist in identifying clients who might be interested in this concept of raising capital you could organise one-on-one discussions or seminars or webinars to brief your clients.
Unfortunately, thousands of small businesses and medium sized enterprises do not have any knowledge of Crowd Sourced Funding Equity Raising and this could be placing their businesses at a significant disadvantage.
Interested in hearing more and getting a better understanding of how your accountancy business could take advantage of the biggest change for financing for small and medium sized businesses in the last 35 years?
If you are interested why not invest “one hour” of your time to gain a complete understanding of what Crowd Sourced Funding Equity Raising is all about, the opportunities that it offers to businesses but also to accountants so that you can get yourselves set to be able to be offering a significant diversified range of services to your clients and prospects?
Please join us for a free webinar on Tuesday, 29 October 2019 at 11:30am AEST / 12:30pm AEDT. To register for the webinar, please click here.
You can obtain more information on the services that are available to assist your accountancy business to run a range of “Business Improvement Services” for the benefit of your clients by visiting: www.essbiztools.com.au.
Have a great day!
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Episode 212 - First Anniversary - An Opportunity to Add Value
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