Start-Up Business Loans

A start-up business loan is finance designed to help fund a new or recently established business. Funding can potentially be used for equipment, vehicles, stock, fit-outs, marketing, working capital and other legitimate costs associated with starting or growing a business.

Potentially. Some lenders consider start-ups and businesses with limited trading history. Without an established financial track record, lenders may place greater emphasis on your industry experience, business plan, projected cash flow, personal credit profile, available contribution and any security you can provide.

Trading requirements vary between lenders and finance products. Some lenders require an established trading history, while others may consider newly established businesses. Generally, the longer your business has been trading and generating consistent revenue, the more finance options you may have.

Potentially. A recently registered ABN doesn't automatically prevent you from obtaining finance. Your experience, business activity, current or projected revenue, credit profile, contribution and available security can all influence the options available.

Potentially, although the options are more limited. If the business hasn't started generating revenue, lenders may rely more heavily on your business plan, industry experience, financial position, projected cash flow, contracts or orders, contribution and available security.

There isn't one borrowing limit that applies to every start-up. The amount available depends on what you're financing, your experience, expected or existing revenue, credit profile, contribution, available security and ability to service the proposed debt.

Some straightforward applications can receive an indicative decision quickly, while start-up finance may require additional assessment because there is less trading history available. Once the required information has been provided, timing depends on the lender, amount, finance type and complexity of the application.

Potentially. Same-day funding may be available up to $500,000 for qualifying applications, although start-ups without established trading history may require additional assessment and documentation. Approval and funding timeframes depend on the individual application.

Start-up business loan rates depend on the finance type, amount, term, credit profile, business experience, revenue and available security. Because newer businesses have less financial history, rates can sometimes be higher than those available to established businesses. We compare suitable options across our panel of 80+ banks and non-bank lenders to help find a competitive structure.

Not always. Whether a contribution is required depends on the type of finance and what you're purchasing. Larger business purchases, franchise acquisitions and some equipment or property transactions may require a contribution, while other business finance facilities may not.

Not necessarily. Some start-up finance can be arranged without residential or commercial property security, although guarantees may still be required. Providing suitable security can potentially increase your borrowing options, loan amount or available term.

Potentially. Unsecured finance may be available to some newer businesses, particularly where there is already demonstrable revenue or strong supporting information. Businesses that haven't begun trading generally have fewer unsecured options.

Potentially. A new business may not have historical financial statements to provide. Depending on the lender, alternative information such as bank statements, projected cash flow, contracts, business plans, industry experience and evidence of existing revenue may be considered.

Not always, but a business plan can be particularly useful when there is little or no trading history. A lender may want to understand your business model, experience, market, expected revenue, costs and how the proposed finance will be repaid.

They may be required, particularly for larger applications or businesses that haven't started trading. Cash-flow forecasts can help demonstrate how the business expects to generate revenue and meet its finance repayments.

Potentially, although your options may be more limited. With little business trading history available, your personal credit profile can carry greater weight in the assessment. The nature and age of previous credit issues, available security and strength of the business proposal can influence eligibility.

Potentially. Start-up finance may be available to eligible sole traders as well as partnerships, companies and trusts. The available options depend on your circumstances and the type of funding required.

Funding can potentially be used for equipment, vehicles, machinery, stock and inventory, fit-outs, premises costs, marketing, technology, wages, supplier expenses and working capital required to establish or grow the business.

Yes, subject to approval. Equipment, machinery and commercial vehicles can often be financed using asset finance, where the asset being purchased supports the finance. This can sometimes be more suitable for a start-up than borrowing the entire amount as an unsecured loan.

Potentially. Finance can be available for commercial fit-outs, including furniture, fixtures, cabinetry, signage, equipment and other establishment costs, depending on the business and finance structure.

Potentially. Working capital finance can help fund initial stock and inventory requirements, although eligibility will depend on the strength and stage of the business.

Potentially. Start-up finance can provide working capital for expenses such as wages, rent, suppliers, marketing and other operating costs while the business establishes its revenue.

Yes. Business purchase finance can be used to acquire an established business. Because an existing business has a trading history and financial performance that can be assessed, the finance options can differ significantly from funding a completely new business.

Potentially. Franchise finance can be available for new franchise locations and may help fund franchise fees, equipment, fit-outs, stock and working capital. Lenders will generally consider the franchise system as well as your experience and financial position.

Yes. Relevant industry, management or professional experience can strengthen an application because it demonstrates your ability to operate the proposed business, particularly when there is limited trading history.

They can. Signed contracts, confirmed orders or other evidence of expected revenue may help demonstrate demand for the business and support projected cash flow. Whether a lender relies on them depends on the application and finance product.

Potentially. Self-employed applicants and sole traders can apply for start-up business finance. The lender will assess the business as well as your experience, financial position, credit profile and ability to repay.

Potentially, although revolving credit can be more difficult to obtain without an established trading and cash-flow history. Depending on your circumstances, a term loan, asset finance or another working capital facility may be more suitable initially.

Potentially for some types of finance, but no-deposit funding isn't available for every start-up or transaction. Your credit profile, experience, business strength, asset being purchased and available security can all affect whether a contribution is required.

Potentially. A home-based business may qualify for business finance if it meets the lender's eligibility requirements and the funds are being used for a legitimate business purpose.

Requirements vary, but you may need identification, ABN and business details, a business plan, financial forecasts, bank statements, details of your experience, contracts or purchase orders, information about the intended use of funds and evidence of your contribution or available security.

Getting an initial quote with Overdrive does not require an upfront credit check. We can review your business and compare suitable options before progressing to a formal application. If you choose to proceed, the selected lender may conduct a credit enquiry as part of its assessment.

Relevant industry experience, a strong credit profile, a realistic business plan, demonstrated or contracted revenue, sufficient working capital and an appropriate contribution or security can strengthen an application. The factors that matter most depend on the type of finance you're seeking.

Start-up finance can help you preserve your own cash while funding the equipment, stock, fit-out and working capital required to get your business moving. The right structure depends on what you're funding, how established the business is and how the proposed repayments will be supported.