Having access to funding is key to the growth and evolution of your business.

We’re used to exploring the common routes to funding, such as business loans, private investment and venture capital etc. But when was the last time you stopped to check what government grants were available for your sector or business type?

Let’s find out more about government grants, the benefits they have over debt finance and what you can do to improve the chances of a successful grant application.

What are the key benefits of a government grant?

With debt finance, like business loans and lines of credit, etc., you commit to repay the full amount of the loan or credit line. You get the funds you need in the short term and then pay back that loan over the long term.

A Government grant doesn’t usually need to be repaid, unless you break the conditions of the grant. In essence, it’s free money that costs your business nothing and doesn’t add to the existing debt level in the business.

Where can you find the latest Government grants?

There will usually be a number of different government grants available, with eligibility criteria based on your location, business size and industry type, etc.

You can search for grants on the Government website [here] (https://www.business.govt.nz/tax-and-money/getting-government-grants).

How to make a successful application for a grant

Applying for a grant can involve a fair amount of form-filling and drilling down into the details of the application. But it’s worth it to access this free funding and get that capital boost!

Here are some things you can do as a small business or not-for-profit to increase the chances of a successful grant application:

Get organised and be ‘grant ready’

Make sure you’ve got up-to-date cloud access to your business documents. This dramatically speeds up the application process and ensures you have all the required evidence.

Ideally, this should include your current accounts, cashflow forecasts, tax returns and company registration details. Having detailed costings of the grant-focused project is also sensible. Grant bodies will be keen to see budgets and cashflow predictions of how the money will be used to achieve your planned goals.

Align your project with specific grants and objectives

Grants are not general funding; they exist to support governmental goals around areas such as sustainability, innovation, employment and enterprise.

Because of this, it’s important that your stated project aligns with the overall goals of the grant. Do your homework, read the grant conditions and demonstrate how your specific project, such as investing in new technology, directly contributes to the funder’s stated goals.

Have great financial tracking and reporting in place

Once you’ve been successful in applying for a grant, you’ll typically be expected to stick to some pre-agreed reporting milestones. Failing to do this can, potentially, result in you losing the grant.

You’ll need strict grant accounting practices in place to track every expense that falls under the grant's budget, and clear reporting that you can provide to the grant body. This helps you stay compliant with the grant conditions and makes you more credible when applying for future government grant funding opportunities.

If you’re looking for additional funding for your next project, come and talk to our team. We can advise you on available grants and assist with the application and accounting process.