Startup business loans
There’s no single “startup loan” product, but real startups do get funded, usually through unsecured lending, asset finance, or a bank’s own capped startup program. Which one fits depends on what you can actually show a lender.
Most major banks want 12 to 24 months of trading history before they’ll lend, which rules out a genuine startup by design. That doesn’t mean funding isn’t available, it means the path looks different: unsecured lending assessed on the founder’s credit and the business’s early trading pattern, asset finance secured by the thing you’re actually buying, or a lender-specific startup program with its own caps and conditions.
The real question isn’t “can a startup get a loan,” it’s which structure fits a business that doesn’t have years of financials behind it yet.
Can a startup actually get a business loan in Australia?
Yes, but not from the same door most established businesses use. Major banks typically require well over a year of trading history, sometimes two, before they’ll consider a standard business loan, which is a policy position, not a judgement on any individual startup. Non-bank lenders and a handful of bank-run startup programs fill that gap, assessing the founder’s personal credit history and the business’s early numbers instead of years of financials.
The businesses that get funded fastest are the ones that come in with a clear, specific ask, not “some working capital,” but a defined amount for a defined purpose, backed by whatever real trading or contract evidence already exists.
What can a startup actually access?
Two of our existing products do most of the real work here. Unsecured business loans run from $5,000 up to $250,000 as standard, sometimes further for the right profile, assessed on cash flow and the founder’s personal credit rather than years of trading history. Asset finance is often more accessible again for a genuine startup, since the asset itself is the security, a signed works contract and clear cashflow forecasts from your accountant are usually enough to get considered, even without trading history behind it.
Both sit on the same security tiering that applies across the board: under $250,000, that’s usually a director’s guarantee (your signature, not your house), not a mortgage over property.
Do banks have startup-specific programs?
Some do. A handful of major and regional banks run dedicated startup loan programs for businesses with an ABN registered less than two years, typically capped in the $10,000 to $50,000 range, with no asset security required and a fixed loan term. These sit alongside, not instead of, the broader non-bank market, worth asking about directly if your business qualifies on the ABN-age criteria.
What if you’re an Aboriginal or Torres Strait Islander-owned business?
Indigenous Business Australia runs a genuinely different kind of program: a Start-Up Finance Package of up to $150,000, where up to 30% is awarded as a non-repayable grant to purchase business assets, with the remainder structured as a loan over a 7-year term. It’s specifically for businesses at least 50% owned by people of Aboriginal and/or Torres Strait Islander descent, trading less than two years, with under $400,000 in annual turnover. Worth pursuing directly if your business qualifies, it’s a materially better structure than a standard loan.
| What matters | Unsecured loan | Asset finance | Bank startup program |
|---|---|---|---|
| Amount | $5,000 to $250,000+ | Sized to the asset | Typically $10,000 to $50,000 |
| Security | Director’s guarantee | The asset itself | Usually none required |
| What’s assessed | Personal credit, cash flow | Contract or forecast evidence | ABN age, personal credit |
| Best suited to | General working capital | A specific vehicle or equipment purchase | Businesses under 2 years old, smaller amounts |
What do lenders actually want to see from a startup?
A clear, specific business plan, realistic cash flow forecasts (ideally from your accountant, not a template), and a clean personal credit history from the founder, since that’s what stands in for the trading history a startup doesn’t have yet. If you’re financing a specific asset, a signed works contract or supply agreement does more for your application than almost anything else, it gives the lender something concrete to assess instead of a projection.
When it’s too early to borrow
If the business has no revenue yet, no signed contract, and no clear plan for how the loan gets repaid, taking on debt this early usually adds risk rather than removing it. Sometimes the right answer is to wait until there’s real trading data to show, or to look at whether a grant, like the Indigenous Business Australia package above, fits before taking on a loan at all. If that’s your situation, say so on the call, we’d rather tell you to wait than place a facility that puts the business under pressure from day one.
Not sure which path actually fits a new business?
Tell us what you’re funding and how long you’ve been trading, and we’ll tell you honestly what’s realistic right now, not just what sounds good.
Compare this against
Not sure a startup loan is the right shape?
Need general working capital, not tied to one asset?
Assessed on cash flow and personal credit, no property security required.
Financing one specific vehicle or piece of equipment?
The asset itself is the security, often the easiest path for a genuine startup.
Got a full year or more of trading history now?
Once you’re established, a standard term loan usually prices better than a startup-specific facility.
Frequently asked questions
