Types of business funding.

There are two types of funding available to small businesses - debt financing and equity financing.

Debt financing is receiving money as a loan, which includes borrowing from a lender like a bank, or from friends or family members.

Equity financing is receiving money in exchange for some ownership in the business. That might come from an organisation or from people you know.

Before you seek funding.

The first step in thinking about funding your business growth is to work out how much money you will need. This the ‘capital’ required for you to take the next step – for instance, buying a ute, employing a salesperson, or spending on advertising.

When you know how much capital you need, think about where it might come from. Sources of funding might include:

  • Your own savings
  • Selling personal or business assets
  • Restructuring costs to help you save over time
  • Grants or other types of subsidies.

If you can’t reach your target through any of these sources, or by funding using profits from the business, you will need to use debt or equity financing, or a combination of both.

Funding your business

Profit, equity, cashflow management or a business loan? By exploring funding sources to grow your business, you can make more informed decisions about your next move.

Government grants and business support.

For established businesses

You may be eligible for government grants or other help to subsidise training costs and business activities.

Learn more

For new businesses

If you’re a start-up, have a look at government information on grants available.

Learn more

R & D funding

Callaghan Innovation is a government agency supporting research and development with funding support.

Learn more

For Māori businesses

Find a raft of helpful services including Te Puni Kōkiri Māori Business Growth Support information, on the MBIE site.

Learn more

Things you should know.

Eligibility criteria and lending criteria, terms and conditions apply. An establishment fee may apply.

The material on this webpage is provided for information purposes only and is not a recommendation or opinion.

The material on this webpage does not take your particular financial situation or goals into account. We recommend you seek independent legal, financial and/or tax advice.

Links to other sites are provided for convenience only and Westpac accepts no responsibility for the availability or content of such websites.

Business Lending products are only available for business and/or investment purposes and not for personal, domestic or household purposes.

Westpac accepts no responsibility for the availability or content of any third party websites linked on this page.