Startup Business Loans

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 harder than for an established business. According to ABS data, less than half of new businesses survive to year three, and lenders know this. Most major banks require at least two years of trading history and audited financials before they will consider a standard business loan application.

However, Australia's growing alternative lending market has created genuine options for new businesses. Specialist lenders, fintech platforms, and even one major bank (Westpac) have developed products specifically designed for startups and early-stage businesses. A broker who works business lending knows which of these lenders will consider an application like yours before it is lodged.

Which Lenders Actually Fund Startups?

Not all lenders are equal when it comes to startups. Here is how the major options compare:

Major Banks

Westpac is the only Big Four bank with a dedicated startup loan product, $10,000 to $50,000 unsecured for businesses under two years old. You will need a business plan and cashflow forecast (Westpac provides templates). No requirement to be an existing customer.

CBA will consider newer businesses through its BetterBusiness Loan ($5,000 to $100,000 unsecured for pre-approved existing customers). Businesses trading less than 12 months need to provide additional documentation explaining how the loan will benefit the business.

ANZ requires at least six months of reconciled accounting data (Xero, MYOB, or QuickBooks) for its GoBiz online business loan ($10,000 to $200,000 unsecured). NAB assesses startups on standard business lending criteria but has no dedicated startup product.

Fintech and Online Lenders

These lenders are generally faster, more flexible, and more startup-friendly than banks, though rates are higher to reflect the additional risk they take on. Most publish their eligibility criteria but quote the rate only once they have seen your bank data, so the table shows what each lender states publicly.

Startup lenders compared by minimum trading history

Checked against each lender's published criteria on 19 September 2026. Criteria change without notice, so confirm the current figure with the lender or your broker before relying on it. Where a lender does not publish a figure the cell says so rather than guessing.

Lender summary by trading history

• Brand new (0 months): Max Funding, Funding.com.au (if you have property equity), Westpac or St.George startup loan (ABN under two years)
• 4 to 6 months: Bizcap from 4 months; Prospa, Lumi and ANZ GoBiz from 6 months; Capify on turnover rather than tenure
• 12+ months: Moula and OnDeck, plus the full range of bank and non-bank options opens up

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, lenders like Max Funding and Lumi consider impaired credit on a case-by-case basis.
• 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. Westpac provides a free business plan and cashflow template for its startup loan applicants.
• 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 are usually the cheapest option.
• Personal financial position: Lenders may consider your personal savings, other income sources, and overall financial stability as indicators of your commitment and fallback capacity.

How to Apply: Step by Step

1. Assess your readiness: Determine how much you need, check your personal credit score (above 600 preferred), and review whether you meet minimum trading history requirements for your target lenders.
2. Prepare your business plan: Include an executive summary, business description, target market analysis, marketing strategy, your relevant experience, and financial projections (revenue, expenses, profit forecasts for at least 12 months).
3. Prepare a cashflow forecast: Show at least 12 months of projected cash flows, including how loan repayments will fit. Westpac provides a free template; your accountant can also prepare one.
4. Gather documents: Driver's licence, ABN/ACN registration, bank statements (typically 6 months), tax returns, Business Activity Statements (BAS), and accounting software data if available.
5. Choose the right lender: Match your trading history to the right lender (see summary above). Applying to the wrong lender wastes time and can damage your credit score.
6. Apply: Fintech lenders typically offer 10-minute online applications with same-day decisions. Bank applications take 1 to 7 business days.
7. Compare total cost: Look beyond the interest rate, factor in establishment fees (typically 2% to 3.5%), ongoing fees, repayment frequency, and early repayment penalties before accepting.

A broker handles this process for you: matching your circumstances to the right lender, preparing the application to that lender's requirements, and avoiding the extra credit enquiries that come from applying to several lenders directly.

Government Grants and Programs for Startups

Government funding can supplement or even replace commercial lending. Here are the key programs available in 2026:

Self-Employment Assistance (formerly NEIS): Self-Employment Assistance replaced the New Enterprise Incentive Scheme in July 2022. It offers free business advice sessions, a business health check and Small Business Coaching, which gives 12 months of personalised mentoring; eligible participants may also access an allowance for up to 39 weeks and rental assistance for up to 26 weeks. Contact a local Self-Employment Assistance provider to check eligibility.

R&D Tax Incentive: For tech and innovation-focused startups, the R&D Tax Incentive provides a refundable 43.5% tax offset on eligible R&D expenditure for companies with turnover under $20 million. This means you receive a cash refund even if your business has no taxable income, critical for pre-revenue startups. Minimum eligible spend is $20,000.

NSW MVP Ventures Program: Grants from $20,000 to $75,000, depending on the funding stream, for startups commercialising innovative products. Round 3 ran from 9 March to 10 April 2026 and is under assessment; watch the program page for the next round.

QLD Business Growth Fund: $50,000 to $75,000 grants (50% co-contribution required). Watch for future rounds through Business Queensland.

IBA Start-Up Finance (Indigenous businesses): Business loans where up to 30% is awarded as a non-repayable grant for asset purchases. Plus workshops, mentoring, and ongoing business support through Indigenous Business Australia.

Export Market Development Grants (EMDG): Up to $80,000 per year for businesses expanding into export markets. Requires under $20 million annual turnover and at least 2 years trading.

Alternative Funding Options

If a traditional business loan is not the right fit, consider these alternatives:

Angel investors: Typically invest $25,000 to $500,000 in early-stage businesses in exchange for equity. Find them through networks like Sydney Angels, Melbourne Angels, Brisbane Angels, and platforms like Cut Through Venture. Beyond capital, angels often provide strategic guidance, mentoring, and industry connections.

Venture capital: For high-growth startups, Australian VC firms like Blackbird Ventures, Square Peg Capital, and Airtree Ventures invest larger amounts in exchange for equity. Australian startups raised over $1 billion in Q3 2025 alone. Best suited for tech, SaaS, fintech, healthtech, and clean energy sectors.

Equity crowdfunding: Raise up to $5 million per year from retail investors (capped at $10,000 per investor per company). Birchal is the leading Australian platform with 75% market share and over $218 million raised across 300+ successful offers.

Revenue-based financing: Providers like Stripe Capital and Outfund offer funding where repayments flex as a percentage of your daily revenue, pay more when sales are strong, less when they are slow. Best suited for e-commerce and SaaS businesses with recurring revenue. No equity dilution.

Business incubators and accelerators: Programs like Startmate, Cicada Innovations, H2 Ventures (fintech/AI), and muru-D provide funding, mentoring, workspace, and investor introductions. Cicada Innovations has been awarded "Top Incubator in the World" twice and has supported over 300 companies raising $900 million+ in funding.

The Numbers: Startup Survival and Loan Approval Rates

Understanding the statistics helps you prepare a stronger application:

• 75% of new businesses survive their first year
• Less than 48% survive to year three (ABS data)
• 94% of all SME loan applications to major banks are approved, but startups face much tougher odds due to limited trading history
• 26% of SMEs report receiving at least one loan rejection
• 55% of rejected businesses said it significantly constrained their growth
• Average startup costs range from $5,000 to $50,000 depending on business type, with the typical small business requiring $30,000 to $40,000

The most common reasons for loan rejection are strict lender requirements, difficulty providing security, limited credit history, and inconsistent cash flow. Working with a broker who knows which lenders accept startup applications significantly improves your chances of approval on the first attempt.

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.

Start with an amount the business can comfortably service, build a positive repayment history, and refinance or top up as the business grows. By the time a business has 12 to 24 months of trading, far more lenders and more competitive products are open to it; see small business loans for that next step.