Startup business loans in Australia: how new businesses actually get funded

Startup business loans are finance for a business that’s new, or not yet trading, to cover set-up costs such as equipment, vehicles, fit-out, stock and the early months of running expenses. Because there’s little or no history to assess, startup business loans in Australia are judged mostly on the owners: their experience, credit, personal contribution and the security they can offer. Understanding that shift is the key to getting a yes.

This page sits in our guide to business loans in Australia. It covers which start up business loans are realistic, how lenders look at a new venture and how to build a case that stands up.

How many new businesses start in Australia each year?

A lot. The ABS counted 460,461 new businesses entering the market in 2025–26, an entry rate of 16.9 per cent, against 375,331 exits, leaving 2,814,778 actively trading businesses at June 2026. Lenders see a constant stream of new ABNs, and they’ve learnt that some thrive while many close early. That’s why they ask more of startups than of businesses with two years of financials.

Why are startup loans harder to get?

Lenders usually decide how much to lend by looking at what a business has earned. A startup can’t show that, so the lender has to rely on forecasts and on the people involved. The questions become:

• Do the owners know this industry? Years in the trade or sector count for a lot.
• What are the owners putting in? Savings at risk show commitment and reduce the lender’s exposure.
• Is there security? Equipment, vehicles or property give the lender something to fall back on.
• What do the owners’ credit files say? With no business history, personal credit carries the weight.
• Is the plan credible? A realistic forecast with sensible assumptions builds confidence.

The RBA’s October 2025 Bulletin found about one in five SMEs had faced challenges getting finance, citing strict requirements among the reasons. It also noted that lenders report expanded access to unsecured lending for startups with a detailed business plan — though initially only for small amounts.

What startup business loan options are realistic?

Option	Security	Suits	Watch out for
Equipment finance	The equipment itself	Trades, hospitality, health, manufacturing	Lenders prefer standard, resaleable assets
Vehicle finance	The vehicle	Tradies, couriers, mobile services	New ABN may need a deposit or strong credit
Property-secured business loan	Owner’s home or investment property	Larger start-up budgets, buying a business	Your property is at risk if the business fails
Small unsecured startup loan	Director guarantee	Founders with a detailed plan and clean credit	Small amounts, higher cost, frequent repayments
Franchise finance	Business assets, guarantees, often property	Buyers of a proven system	Ongoing royalties reduce repayment capacity
Government programs	Varies	Owners who fit a specific program	Narrow eligibility; can be slow

Most startups use a combination. A common pattern is asset finance for the equipment and a property-secured loan or owner savings for everything else. Property-secured business loans through our network range from $20,000 to $5,000,000, while unsecured and cash-flow options are generally for trading businesses, typically $5,000 to $500,000 sized on turnover and bank statements.

Loans for a new business with no revenue

Loans for a new business with no revenue almost always need security or a program behind them. The two most dependable routes:

1. Asset finance. The lender is relying mainly on the equipment or vehicle. Experience in the industry and clean credit can get a first truck, coffee machine or excavator funded before you’ve raised your first invoice.
2. Property-secured lending. Equity in a home or investment property lets you fund fit-out, stock, wages and the gap before revenue. The decision rests on the property and the plan to repay.

Unsecured lenders, by contrast, usually want six to twelve months of bank statements before they’ll consider a loan. If you’re between those points — trading a few months — our page on business loans for new businesses explains how lenders treat short histories.

Starting out and not sure which route fits? Get a straight answer about your options — your first enquiry doesn’t involve a credit check.

Are there government start up loans in Australia?

There are a few, but they’re targeted. business.gov.au notes that in general the government doesn’t provide finance for starting up or buying a business. The exceptions worth knowing:

• Indigenous Business Australia offers a Start-Up Finance Package for businesses 50 per cent or more Indigenous-owned, with turnover under $400,000, that can include up to 30 per cent of the new business loan as a grant.
• Tasmania’s No Interest Micro-Business Loan Scheme lends up to $3,000, with no interest or fees, to eligible people on low incomes for start-up, insurance, registration or equipment costs.

Our guide to government business loans covers every current program in detail.

How do you build a startup loan application that works?

business.gov.au advises new businesses to prepare a cash flow forecast estimating future sales and costs, since there’s no history to rely on. Lenders say the same. A strong application includes:

• A one-page summary of the business, the amount, what it’s for and how it will be repaid.
• A practical business plan covering customers, pricing, competition and how you’ll win work. See our guide to a business plan for a loan.
• A monthly cash-flow forecast for at least twelve months, with conservative sales and full costs, including loan repayments.
• Evidence of experience such as a CV, licences, qualifications or references.
• Quotes or invoices for equipment, fit-out and vehicles.
• Your contribution, shown in bank statements.
• A personal asset and liability statement, plus details of any property offered as security.
• Signed contracts or letters of intent from early customers, if you have them — these carry real weight.

Illustrative example: a tradie going out on his own

Illustrative only, round numbers, invented business. An electrician with ten years’ experience as an employee sets up his own business. He needs a $70,000 van and tools, and about $30,000 to carry wages for an apprentice and materials through the first few months.

• With a clean credit file and his licence history, an asset financier funds the van and tools with a modest deposit, despite the brand-new ABN.
• The $30,000 working capital is harder; no unsecured lender will look at him without trading history.
• He uses a small loan secured against equity in his home for the working capital, with a plan to clear it once the business has a year of statements.

Splitting the need into the asset and the working capital made both halves fundable.

Should a startup borrow in the company name or personally?

Most lenders will lend to a new company or trust, but with no history of its own, the business entity is really borrowing on the strength of its directors. Expect personal guarantees from every director, and sometimes from spouses who co-own security property.

Setting up the right structure before you borrow saves trouble later. A company with its own ABN and bank account, clean separation of personal and business spending, and an accountant who can produce management accounts from the first quarter all make the second loan — the one you’ll want once you’re trading — much easier. Our page on director’s guarantees explains what you’re signing.

Mistakes that sink startup applications

• Borrowing too little and running out of cash before revenue arrives.
• Forecasts with optimistic sales and missing costs such as insurance, super and GST.
• Applying to several lenders at once, leaving a string of credit enquiries on your file.
• Putting personal spending on the business account, which muddies the picture.
• Leaving out past credit issues the lender will find anyway.

Ready to get your new business funded?

When you’re ready, see if you qualify with a one-minute enquiry. There’s no credit check at first contact, your details aren’t fired off to every lender in town, and a specialist looks at your experience, plan and security together. Give us accurate information about what you need and what you can put in, and we’ll steer you to the lender most likely to back you on the first application.