Startup Business Loans Australia: Funding A New Business
It’s possible to get a business loan as a startup, but whether or not you can get funding from a lender will depend on where you are on your business journey.
How to get a startup business loan
Business loans for startups are more difficult to secure than standard business finance. Below we round up the requirements, lender options and time trames involved.
What you'll need
- Between six and 12 months' trading history & annualised revenue of $50k
- Business owner with a good credit score
- Proof your business will be able to repay the loan based on revenue projection
- A detailed business plan outlining how the funds will deliver growth
- Apersonal guarantee from the business owner may be required
How to get a startup business loan
Sort your financial paperwork
You (and any directors or partners) will need to provide financial documents, including bank statements, business registration and tax information, business balance sheet, value assessment and ID docs.
Demonstrate you can repay the finance
Show the lender your business plan, financial forecasts and cashflow projections. If you don’t have assets to provide as security for the loan, you and any other directors could offer a personal guarantee.
Use your assets as security
You can increase your chances of getting approved for a startup loan if you provide some type of asset as security. It’s usually property, but it can also be cash, or business assets like equipment, stock, or accounts receivables.
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