favi

Both Unsecured and Secured options

Low doc approval

Loan term between 3-36 months

Quick and hassle-free funding

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What is a new start-up business loan?

As a startup ourselves, we understand many startups like yours are likely to struggle to access the finance you need to kick start and take your business to the next level. We love to help Australian entrepreneurs get the loans they need to make their startup dream come true.

As the name suggests, a startup business loan is a financing method to provide you with the startup capital you need to turn your startup into reality.

Typically, startup business owners do not have enough business history to successfully obtain loans from banks in Australia.

Unlike going through a traditional bank, which has a very strict and lengthy screening process for startup loans application with minimal chances of approval, your startup business loan application can be made simple at Broc Finance.

Generally, to be eligible for a startup business loan, you need to have an active ABN. There is no minimum trading time requirement.

What you should know about Startup Business Loans

Have questions? Speak to our experts!

1300 253 041 Apply Now

Things to keep in mind before applying for a Startup Business Loan

Startup business loans can be exciting to act as the seed funding to help kick start your business ideas. However, there are a few important things that one should always avoid while applying for a startup business loan.

  • Randomly applying with multiple lenders
  • Not having enough research to support your business idea
  • Being dishonest
  • Applying in quick succession.
  • Allowing multiple credit checks

Finding the startup business loan with the right rate, terms and amount can be stressful. To avoid any unwanted outcomes, we work with our customers to find the best-suited loan for their businesses and help them avoid these mistakes. Simply complete the application form or send us a message and one of our lending specialists will be in touch to discuss your financing requirement.

What are the pros and cons of a startup business loan?

Pros

Highly possible to get funded by pledging security

Retain your business ownership - no loss on equity

Low Doc Approval: You can get a business start up loan based on the last 6 months’ bank statements and Identification proof in most of the cases.

Free to choose between secured or unsecured finance.

Regular on-time repayments help in building the credit history.

Cons

Business startup loans are generally of smaller amounts unless you pledge a security.

A startup business loan is generally offered for a shorter term.

Interest might be higher than other loans

The most common ways to get your startup business funded

Equity Funding

As a startup business, you can pitch your business ideas to investors who can fund the business in exchange for equity participation in your business. You can raise these equities through:

  • Friends or family
  • Venture capital firms
  • Accelerators and incubators
  • Crowdsource funding marketplaces
  • High net worth individual investors (angel investors)

Pros

  • No obligation to return funds or make repayments.
  • You get expertise knowledge of the investors
  • Less stress on the cashflow of the business.

Cons

  • The ownership of your company gets diluted.
  • Other alternatives may require repayments and put stress on the cashflow of the business.
  • You may not have the full control of the business.

Debt Funding

Equity funding option may not be possible for all the businesses, or some business owners do not prefer to dilute their stake in the business. In such scenarios, debt funding is the most suitable alternative option to fund your new business. Generally, debt funding can be of two types.

Unsecured Business loans:

If you are a new business that has been trading for at least 6 months, you may be eligible for an unsecured business loan. This is the most suitable option for a new business as you do not need to provide any security against the loan. To be eligible for an unsecured business loan for startup businesses, it should be;

  • Trading for more than 6 months
  • Must be turning over more than $5000 per month.

Secured Business Loans:

In case if your business is just started or haven’t started generating any revenues, you can still get a startup business loan by the way of securing a real estate property against the loan. There is no minimum trading time or turnover criteria to be eligible for a secured business loan. However, to get a secured business loan;

  • You must have an active ABN
  • Must be property backed with sufficient equity.

Factors to consider when selecting the best startup business loan for you

As startup business loans in Australia come in many forms, it might be stressful for you to consider which one might be the best for your startup. Here are a few key components to help you evaluate your options:

If you are just having a startup idea and have not yet taken any actions to develop your business, it might be difficult for you to convince lenders to provide you with an unsecured business loan. The more established your startup is, there will be more options available for you. In this instance, your only available option would be a secured business loan.

Although you may be thinking the more funds the better to give you contingency in the case of unexpected events, it is better to come up with a clear amount of funding that your business needs. With an amount in mind, it would be easier for you to select the best option out of the startup business loans.

Generally, startup business loans are for shorter term so you should be careful with the repayment terms. You need to consider whether a weekly/fortnightly repayment option would be feasible or a capitalised interest or interest only repayment option would be more suitable for your business. Depending on your preference and eligibility, you may choose to go with a secured business loan or an unsecured business loan.

What can you use a startup business loan for?

A startup business loans can be flexibly used to meet your business expenses or for the purpose of business expansion. Here are some typical examples of how a startup business loan is used:

  • Set up business costs
  • Meet working capital needs
  • Cash flow issues
  • Purchase or lease new premises
  • Buy stock/Inventory
  • Buy Equipment
  • PR and promotion
  • Create online presence for your business

Startup business loans versus investment capital

During the start of the business, there are different ways of raising the funds you need for the next step of your business. Whether getting a loan or asking for an investment, there are different pros and cons that come with each of them. The key differences between Startup Business Loan and Investment Capital lie in the ownership, control and cost. We have summarised the features of them in the comparison table below:

Start loan application

Startup business loans

Flexible and repayment term can be set up to match your business needs.

Does not dilute your equity in the business, lenders do not have any claim on the profits your business makes.

No risk of losing the control of your business.

Interest on loan is tax deductible.

Investment Capital

You are not obliged to pay dividends to investors.

You don’t have to repay the investors if your startup business fails.

You may gain insights from experienced investors.

Real results with real people.

55+ customer reviews

5.0

Niteesha Nagowah

Niteesha Nagowah

We had an incredible experience working with Saroj from Broc Finance. He is incredibly knowledgeable, responsive, and guided us through the purchase of our company vehicle with expertise. The attention to detail and commitment to finding the best possible options truly set him apart. Highly recommend his services for anyone navigating the complexities of obtaining a finance. Thank you again for outstanding assistance.
Manpreet Kaur

Manpreet Kaur

Our sincere thanks to Saroj ji & his team for their invaluable assistance in securing the loan. We are extremely greatful for his exceptional service & support throughout the process. Highly recommend!
Matthew

Matthew

Broc Finance were awesome…really responsive and solutions focussed. We especially appreciated having a broker who was an advocate for our interests when engaging with lenders.
Ibrahim Alpay

Ibrahim Alpay

Saroj and his team is amazing have been using him for business funding for over a year he has found surprising solutions when others couldn’t make it happen very skill full with negotiating high loan amounts that I would never expect at wonderful terms and rates look no further I recommend broc finance for your business lending purposes look no further and don’t think twice much appreciated won’t go to any other broker at all many thanks to his team !!!!!!
vishal srivastava

vishal srivastava

We have used Broc Finance over last 2 years for various business line of credits and vehicle loan. Broc finance have been very professional in this journey. They have understood our needs as business and catered the solutions as per requirement . They look around in market and get one the best financial solution for the business be at vehicle of line of credits . I would strongly recommend the business for there services
Nasir sabiry

Nasir sabiry

Thank you very much in helping me with financing a car SAS. You have been very professional and responsive every time I needed information. Fully recommend to any looking to finance a car.
Ajay Kanumuri

Ajay Kanumuri

I would strongly recommend. Saroj Shah helped to get my loan with in span of three days. He was very supportive and clearly explained the loan process.
Scott Filby

Scott Filby

Excellent experience with the service of Saroj! He did all the hard work and helped me find what I required. Saroj offered excellent suggestions and went the extra mile with his advice, which won my respect and helped in achieving the outcome required.

Have questions? Talk to a specialist!

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Frequently asked questions

A startup is a young, new business that is still in the early stages of creating its products or services. They are typically very innovative and eager to bring about change in their market. A company is called startup company if its not older than 3-5 years.

The startup business loan application has become simple and paperless without any hassle to take any printouts. All you need is to submit some basic details related to your business by completing the online application form and last 6 months bank statement of your business through a secured link provided by us. Additional documents may be requested depending on the type of startup business loan you are applying for.

A startup lack of trading history, as well as their inability to show evidence of capital flow coming back into the business, are two of the most significant hurdles they face. As a result, lenders are cautious to give them a company loan, especially one that is unsecured. However, there are other options when your startup business does not have enough cashflow. Please get in touch at 1300 253 041 or enquiries@brocfinance.com.au to know more about other options.

This will depend on the required loan amount and your eligibility for an unsecured business loan. In case you are looking for a higher loan amount or does not meet the eligibility criteria for unsecured business loans, you would need to provide a security to get a secured business loan.

The interest rate charged by the lenders differs from case to case depending on various risks associated with the business, like Industry, scale of operation, cash flow, credit history, asset ownership and term of the loan.

For e.g. A borrower with poor credit history would be charged a higher rate of interest as compared to a borrower with a good credit history. However, in general the interest rates typically range between 1.5-2.5% p.m.

Lenders would run a credit check only after obtaining a consent from you.

We have tie up with lenders who are happy to look at businesses and give them a second chance who had bad credit history in the past but have robust cash flow at present. Please get in touch with us for a free consultation.

At Broc Finance, we endeavour to get the most adequate facility suitable to the business requirements of our clients. In most of the cases logged in through us, we try to get an indicative offer from the lender for our client’s consideration before proceeding with formal application and consent to credit check. This approach helps our clients to avoid unwanted rejections and credit checks which can significantly impact their credit score. We would be happy to answer if you have any other questions. Please contact us at 1300 253 041 or enquiries@brocfinance.com.au