Startup Business Loans from 8.99% p.a.

Getting Finance for Your New Business

Starting a business is one of the most exciting and challenging things you can do. Whether you are launching a trade business, opening a retail store, starting a professional services firm, or building a tech startup, almost every new venture needs some form of funding to get off the ground.

The reality is that getting a business loan as a startup is more difficult than for an established business. Most major banks require at least two years of trading history and audited financials. However, Australia's growing alternative lending market has created genuine options for new businesses. Specialist lenders, fintech platforms, and non-bank lenders have developed products specifically designed for startups and early-stage businesses.

As brokers, we have access to these specialist lenders and know exactly which ones will consider your application based on your specific circumstances. This saves you the time and credit score damage that comes from applying to multiple lenders directly.

What Lenders Want to See from Startups

Without a trading history to assess, startup lenders focus heavily on the person behind the business. The key factors they evaluate include:

• Personal credit history: A clean credit file with a score above 600 significantly improves your options. Defaults, bankruptcies, or court judgements will limit your choices but not necessarily exclude you entirely.
• Industry experience: Demonstrating relevant experience in the industry you are entering gives lenders confidence. A plumber starting their own plumbing business, for example, is a much lower risk than someone entering an unfamiliar industry.
• Business plan: For larger amounts, a clear business plan showing market research, revenue projections, and a viable path to profitability is important. It does not need to be a 50-page document, but it should show you have thought things through.
• Available security: If you own property or can offer other assets as security, your borrowing capacity and rate options improve dramatically. Property-secured startup loans can attract rates from 6.99% p.a.
• Personal financial position: Lenders may consider your personal savings, other income sources, and overall financial stability as indicators of your commitment and fallback capacity.

Startup Funding Options in Australia

Several types of finance are available to startups depending on your stage and needs:

Unsecured startup loans are available from $5,000 to approximately $150,000 without property security. These are assessed primarily on personal credit and industry background. Rates are higher (typically 10% to 20% p.a.) due to the higher risk profile.

Secured startup loans use property or assets as collateral and offer rates from 6.99% p.a. with borrowing up to $500,000 or more. If you have equity in your home, this is usually the most cost-effective way to fund a new business.

Equipment finance for startups is often easier to obtain than general business loans because the equipment itself serves as security. Many equipment finance lenders will approve startups for financing specific assets like vehicles, machinery, and fitout equipment.

Government grants and schemes such as the New Enterprise Incentive Scheme (NEIS), state-based grants, and R&D tax incentives can supplement commercial lending. We can guide you toward relevant programs for your industry and location.

Building Your Credit for Future Borrowing

Even if your initial funding needs are modest, establishing a positive business credit history from the start is valuable. Taking a small business loan or equipment finance and repaying it reliably builds your business credit profile. After 12 to 24 months of trading, your options expand significantly and rates improve.

We recommend starting with a manageable amount that your business can comfortably service, building a positive repayment history, and then refinancing or topping up as your business grows. Many of our startup clients return for additional funding within their first two years, and by that stage, they qualify for much more competitive products.