Business loans for new business owners are possible, but options can be narrower and lenders often look more closely at you. A lender may ask for a business plan, a cash flow forecast, your personal credit and finances, any security or guarantee, and the records the business already has.
This guide covers what lenders may look at, how personal guarantees work, finance that can suit a new venture and other ways to fund it. Every lender sets its own criteria, so treat this as a guide to preparing, not a promise of approval.
- Work out how much you need and what it's for.
- Write a business plan.
- Prepare a cash flow forecast.
- Check your personal credit and finances.
- Decide what security or guarantee you could offer, if any.
- Compare lenders on the total cost, not just the repayment.
Can a new business get a loan?
Yes, some lenders will consider a new business, but a new business loan is usually harder to get. A lender can't see how the business has done, so it has to judge how it is likely to do.
What lenders ask for with new business loans varies by lender, product and applicant. The points in this guide are examples of what may come up, not a checklist that guarantees a yes.
Business loans with no trading history
With no trading history, the options can be narrower and the assessment may lean more heavily on you. A lender may look at your industry experience, the plan and forecasts, your personal finances and credit, and any security or guarantee.
Your own money in the business can matter too. Investors and lenders will expect some self-funding before they agree to offer finance, according to business.gov.au.
None of this means a loan will be offered. It simply shows what a lender may use in place of the records an established business would have.
What lenders may look at
Lenders usually want to see your business plan before they approve a loan. If you're just starting, the business.gov.au guide suggests a cash flow forecast to estimate future sales and costs.
The table shows common examples and why they can matter.
What a lender may ask about | Why it can matter |
|---|---|
Business plan | Shows what the business does, who it sells to and how the money will be used |
Cash flow forecast | Estimates future sales and costs, and whether repayments fit |
Your experience | Time in the industry can help a lender judge the plan |
Personal credit and finances | With little business history, your own record carries more weight |
Security or a guarantee | An asset or a personal promise to repay if the business can't |
Records you already have | ID, any financial reports, lease agreements and bank statements |
Source: business.gov.au guidance and general lending practice, checked 15 October 2026. Examples only; requirements vary by lender, product and applicant.
From what we see across a panel of lenders, new-business applications tend to stall for a few common reasons. Most can be dealt with before you apply.
- There's no forecast, or it isn't clear how the business will make repayments.
- It's unclear exactly what the money will be used for.
- Personal and business spending are mixed in one account.
- There are problems on the owner's personal credit report.
- Several applications have gone in at once.
That last point is about your credit report. The OAIC explains that an application for consumer or commercial credit can be recorded on your credit report as a credit enquiry.
Comparing options before you apply helps keep those enquiries to the applications you mean to make.
Secured, unsecured and personal guarantees
A secured loan is backed by something of value, such as property or business stock, which the lender can take if the loan isn't repaid. When you borrow to buy an asset like a vehicle or equipment, that asset can often be the security, according to business.gov.au.
An unsecured loan doesn't put a specific asset at risk, so the lender will usually look at the business's financial health instead. Our guide to how unsecured business loans work covers that side in more detail.
According to ASIC, lenders often require personal guarantees or security, such as over a family home, when a company borrows. If the company can't repay, you may be personally required to.
That means a guarantee can put your own assets on the line, even when the business is a company. Read any guarantee carefully and get independent legal and financial advice before you sign.
Finance that may suit a new business
The right type of finance depends on what the money is for. Matching the two can make an application easier for a lender to understand.
If you need to | Finance that may be relevant |
|---|---|
Buy a vehicle or equipment | Asset finance, such as a chattel mortgage, hire purchase or lease |
Wait on unpaid invoices | Invoice finance, which lets you borrow against invoices you've sent |
Cover short cash flow gaps | An overdraft or line of credit |
Fund general costs | A term loan, secured or unsecured |
Source: business.gov.au, checked 15 October 2026. Examples only; availability depends on the lender and your circumstances.
Asset finance can be a natural fit when you're buying equipment, because the asset itself can often act as the security. Our page on chattel mortgage for business equipment explains how that structure works.
Vehicles follow a similar path. If a ute or van is part of the plan, our guide to financing a business car, ute or van goes through the options.
Business.gov.au says an overdraft can help bridge short-term cash flow gaps, but it isn't meant for buying assets or long-term borrowing. Invoice finance only becomes relevant once you're sending invoices.
What may be relevant at each stage
A new business changes quickly in its first year, and so does what a lender can see. The table sets out what may be relevant at each point, as a guide rather than a rule.
Stage | May be relevant | What to prepare |
|---|---|---|
Before trading | Your own funds; asset finance for equipment | Business plan, forecast, personal finances |
Early months | Asset finance; a small facility | Plan, forecast, early bank statements |
Once you have records | A wider range of business loans | Financial reports, bank statements, BAS |
A general guide only. Each lender sets its own criteria.
Other ways to fund a new business
A loan isn't the only option, and for some new businesses it isn't the first one. Business.gov.au describes self-funding, often called bootstrapping, as often the first step in seeking finance.
Free advice is often the most useful help early on. The Small Business Development Corporation in WA notes that most government help for small business is free or low-cost advice, not money.
Family or friends may lend money or invest, though it's worth thinking about how that could affect the relationship. Equity from investors means giving up part of the business in return for funds, and crowdfunding is another route some start-ups use.
On government help, the business.gov.au funding guide is direct: in general, the government doesn't provide finance for starting up or buying a business. Grants do exist for things like research and development, expansion, innovation and exporting.
For example, the Start-Up Finance Package offers loans to eligible Aboriginal and Torres Strait Islander individuals and businesses starting out, with a package of up to $150,000. Business.gov.au listed it as open when we checked on 15 October 2026.
Programs open and close, so check the official business.gov.au grants and programs finder for what's available now.
Be wary of anyone who calls or emails to say you're eligible for a loan or grant, or already approved for one. Business.gov.au warns that this is a common scam.
What a business loan costs
The repayment is only part of the cost. The table shows one $50,000 loan over three terms at the same hypothetical rate.
$50,000 over | Monthly repayment | Total repaid (interest) |
|---|---|---|
2 years | $2,354 | $56,488 ($6,488) |
3 years | $1,661 | $59,786 ($9,786) |
5 years | $1,112 | $66,733 ($16,733) |
Source: Loans123 calculations. A hypothetical illustration at 12% a year, not a Loans123 rate or offer. Figures are approximate and exclude fees and charges.
A longer term lowers the monthly repayment but adds to the total interest. Fees, your rate and any security will all change the numbers, so compare the total cost of each option.
To test other amounts and terms, the Loans123 loan calculator gives a guide to repayments.
Frequently asked questions
How do you get a loan for a new business?
Prepare a business plan and cash flow forecast, understand your personal finances, and compare lenders on the total cost. Criteria vary by lender, so no single checklist guarantees approval.
Can you get a business loan with no trading history?
Some lenders may consider it, but the options can be narrower. They may rely more on the owner's experience, the plan, forecasts, personal finances, security or a guarantee.
How much is the monthly payment on a $50,000 business loan?
At a hypothetical 12 per cent a year over three years, it's about $1,661 a month, with about $9,786 in interest before fees. Your actual rate, fees and term will change these figures.
How much would a $100,000 business loan cost?
At the same hypothetical 12 per cent over five years, the repayment is about $2,224 a month, or about $133,467 in total including $33,467 in interest, before fees. Different rates, fees and terms would give different results.
Are there government loans for new businesses?
In general the government doesn't fund start-ups, though a few specific programs exist for eligible business owners. The official business.gov.au grants and programs finder shows what's currently open.
Next steps for a new business owner
Before you apply, get the plan, the forecast and your own finances in order. Then compare options on the total cost, including fees and the loan term.
A business adviser, accountant or finance broker can help you weigh it up. Business.gov.au notes that some brokers charge a fee and others are paid by the lender, so ask how a broker is paid.
This article is general information only and does not take your personal circumstances into account. It is not financial advice. Consider whether a product suits you and read the loan terms before you apply.
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Written by
Trent Cray
Finance Specialist, Loans 123
Trent is a Finance Specialist at Loans 123 in Victoria Park, Perth. He helps customers compare more than 30 lenders to find car, personal and business finance that suits their situation.
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