For those business in the New England North West region that wish to raise capital we specialise in developing appropriate funding strategies to meet your current business needs and those that align with your future aspirations.
Our services include the use of traditional debt funding options from major banks through to more complex equity capital raising techniques using extensive international platforms. This is then supported by Board and managerial guidance to accelerate the growth and reduce the risk by adhering to a disciplined business development strategy.
The first step in realising your dream is to contact us to arrange a no obligation free meeting to see if you qualify for our exclusive program.
Business entrepreneurs raise capital for many different reasons and from many different sources.
In Australia raising capital is generally governed by the Corporations Act and managed by the Australian Securities and Investment Commission (ASIC) and Australian Prudential Regulation Authority (APRA) for banking regulations.
Raising capital using debt is subject to credit licencing regulations whilst raising equity capital generally involves the consideration of two separate legislative options depending on the amount being raised and the number of participants.
RARE Partners have the capacity to introduce businesses to a range of debt financiers through our broker licensing arrangements.
Typical debt financing can range from $50K though to $5m+ and includes invoice financing, international trade finance, equipment financing, short and long term business loans, private lending, convertible notes, and real estate back lines of credit amongst many other products.
The interest rates, fees and other charges depend on where the funding is originated from, the quality of the deal and how the funds are being repaid. Our national broker arrangements mean we have access to both bank and non-bank financiers.
Raising equity capital is a highly regulated market due to the high risk associated with this type of transaction. For most businesses, the raising of equity capital is considered once all debt finance arrangements have been exhausted and any existing internal funding options have been considered.
To raise equity capital in Australia there are two main options to consider. Non-Disclosure, where only limited documents are required to be provided to an investor, and Disclosure, where a full Prospectus must be prepared and lodged with ASIC.
Capital raising via the Disclosure mechanism requires the business to issue an Offer Information Statement (OIS) commonly known as a Prospectus. These documents need to be submitted to and approved by ASIC. The cost of producing a Disclosure document is generally higher due to the legal and compliance obligations. Generally a business can raise as much equity capital as they wish (subject to shareholder approvals etc.) and they can advertise to the public. A Disclosure capital raise is normally undertaken via a listed stock exchange which will require additional ongoing compliance requirements as specified by the exchange.
For Non-disclosure capital raising transactions there are two options – a Small Scale Offer and an Excluded Offer. Under both of these options, the company cannot advertise to the public so normally promote their offering via a regulated online portal, there are strict restrictions and penalties regarding share hawking, advertising and cold calling.
- Small Scale Offers
Under a Small Scale Offer, a company can raise up to $2m and can only have 20 retail investors every (rolling) 12 months. This rule is sometimes referred to as the "20/12 rule", ie 20 retail investors every 12 months. Where the funds are derived from a non-retail (known as a wholesale investor) there are no restrictions to the number of investors.Capital IQ however operates under ASIC Class Order 02/0273 which allows our clients to raise up to $5m if the capital fund raising is our managed platform.
- Excluded Offer
An Excluded Offer is one where a business cannot approach "retail investors", and can only approach wholesale, sophisticated and professional investors. Under an Excluded offer the company can generally raise up to $10m but are restricted on who they can approach. Knowing how to raise capital and when is complicated and there are criminal penalties for not getting it right. If you have any questions about how to interpret the fundraising laws, please contact us or your lawyer before proceeding.