Looking for business finance but don’t know where to turn?

are you looking for business finance
Are you looking for business finance?

What does it take to get a business off the ground in Australia? From identifying your target market to creating a business plan and applying for a business loan, get ready to start your business off on the right foot!

Did you know that there are business loans that will help you get your dream off the ground? There are plenty of companies in Australia that will help you either start your business or fund your existing business. And the best part is that if you find a company that believes in you and understands your goals, they will support you for life!

Where to start when you need a business loan

The best way to approach an Australian lender that you would like to help you get your business off the ground or, for existing businesses to grow, is to make sure that you have a sound business plan. This means researching to ensure that your plan is foolproof and putting adequate time and effort into it.

That means knowing where your business is going and how it’s going to get there. Providing as much valuable information as possible will help you secure the business loan you need. Do you know that there are Australian finance companies out there that will help you to bring your business plan up to standard and that loan comparison sites are a good place to start?

What type of business loan should you apply for?

The type of business loan or finance option that you apply for and make use of will have to be tailored to the needs, cash flow and growth stage of your business.

Start-ups will always have a harder time securing finance and will rely on the founder or founders to ensure a finance option is secured. Existing businesses can rely on their existing financials and cash flow as well as projections to apply for a loan or line of credit.

Existing businesses also have the advantage of being able to offer security and therefore access business finance options that carry lower interest rates and larger loan amounts.

If you are looking for start-up finance you may be able to secure a grant if you are a non-profit organisation or secure a government-backed loan which comes with lower rates and better terms than anything else you’re going to find.

If these options are not available to you you may want to look at angel investors or equity investments followed by loan options which can be taken out by you, as the founder of the business.

This includes applying for a personal loan or making use of a peer-to-peer lender as well as credit cards. These loan options may not offer large sums and will require that you be able to begin repaying the credit immediately. This may not always be practical and so these loan options must be considered carefully and weighed up against other options.

Business loan calculator

The interest rate of a loan will vary based on your credit score and risk profile.
This business loan calculator is for illustration purposes only.
The use of this loan calculator is subject to our terms of use.

Business finance options for start-ups summarised

  • Grants for non-profit start-ups.
  • Use savings to fund your start-up.
  • SBA loans.
  • Equity investments via venture capital firms.
  • Crowdfunding options.
  • Angel investors.
  • Apply for a traditional loan.
  • Apply for a peer-to-peer or personal loan.
  • Use a credit card.

Would you like to know if your business idea will work?

The best way to figure out if your business idea will work and therefore, if you will be able to get a business loan, is to see if there is a market for your idea. For example, you would like to open a small corner shop that will cater to all the people in the area.

It would be advisable to get as much information as possible about existing corner shops in the area to present to lenders. This information helps the lender decide whether you are a high or low-risk borrower.

Are you looking for advice and not sure where to turn?

There are various ways to collect the targeted information that you need about your business. Yes, you will get a few that are not going to help but you will also come across companies that are willing to help you and point you in the right direction. You could also contact your local bank and see if there is anyone there that would be willing to assist you in finding the correct location for your business.

Perhaps if you would like to open a beauty parlour, and you have space at your house you could consider taking out a personal loan to convert one of the rooms in your house.

The advice that you will be given by various people and other entrepreneurs is always good to keep in mind. You will need to see what the market needs and this is one of the best indications on whether or not your business will succeed. Finding what your area needs and sticking to this will help your business boom.

Applying for your business loan once your business plan is ready

Once you have a full-proof business plan it is time to apply for your loan. Whether you apply online or you go into the bank does not matter but, it would be easier to go into a bank as there will be lots of questions that you may need to ask or they might ask you. The bank will then take into account your business plan and financial information as well as personal details before making a decision.

You need to remember that when you sign for your loan you commit to repay it. You have to pay your loan back in full, to avoid accumulating a negative credit history and preventing you from accessing other forms of credit.

You need to take these things into account as there should be no shortcuts when you’re running a business to make it grow. If you can save on costs and expenses then we would suggest looking at loaning a lower amount and as a result, keeping your business debt to an absolute minimum.

Popular & reliable direct lenders offering Business loans

  1. BankSA Business loan


    • Loans up to $1,000,000
    • Term up to 260 months
    • Interest from 5.33%
  2. Beyond Bank Business loan

    Beyond Bank

    • Loans up to $125,000
    • Term up to 7 years
    • Interest from 13.50%
  3. Bank of Melbourne Business loan

    Bank of Melbour...

    • Loans up to $1,000,000
    • Term up to 260 months
    • Interest from 6.56%
  4. Banjo Business loan


    • Loans up to $400,000
    • Term up to 12 months
    • Interest from 8.25%