How to get a Business Loan in Australia

Ever found yourself staring at your big idea, only to get stuck on one small but crucial question—how do I fund this?

If you are wondering how to get a business loan in Australia to turn a side hustle into a full-time gig or help your business grow, you're not alone. The good news? It's more straightforward than you might think.

In this article, we'll explain the essentials of getting a business loan: what to prepare, how to apply, and what lenders look for.

And while Credit24 doesn't offer traditional business loans, we do provide personal loans and lines of credit that can be used to support your business goals—from launching something new to bridging short-term cash flow.


How to get a business loan: Step-by-step

When you have your business vision in place, here's a breakdown of how to apply for a business loan in Australia, step by step:

Initial research

Start by understanding your options. Banks, online lenders, and credit unions each have different offerings, and not all loans are built the same. Compare interest rates, services, and flexibility. (Keep reading and learn 8 steps before applying for a business loan.

Document preparation

Before any lender can say yes, they need to see the full picture—your Australian Business Number (ABN) or Australian Company Number (ACN), income records, and your business financials. Pulling this together early makes things smoother and shows you're serious and prepared.

Lender selection

Different lenders suit different needs. Choose based on more than just the interest rate—look at loan type, term length, flexibility, and eligibility.

Application submission

When you're ready, submit your application—usually online—with your documents and key business details.

Assessment process

Lenders will review your credit score, business performance, and ability to repay. They may ask for more information or clarification.

Approval and settlement

If approved, you'll receive an offer. Once you accept the terms, the funds are released—often within a few business days.

Common mistakes to avoid

Applying for a business loan isn't just about hitting "submit"—small mistakes can delay approvals or reduce your chances altogether. Being prepared—and honest about your situation can make a big difference.

Here are the most common slip-ups, and how to avoid them:

Submitting incomplete or outdated documents

Lenders need to see a clear and up-to-date picture of your business. Missing paperwork, old bank statements, or vague financials can slow things down—or lead to rejection. Take the time to double-check that everything is current and complete.

Choosing the wrong loan type

A working capital loan isn't the same as equipment finance, and using the wrong loan for your needs can create cash flow issues. Make sure the loan fits your specific purpose. If you're buying gear, for example, a dedicated equipment loan may come with better terms.

Underestimating the approval timeline

Some lenders offer quick assessments, but many still take several days or longer. Applying too late, especially if your business is under pressure, can leave you stuck. Start early to avoid unnecessary stress.

Not reviewing your credit history first

Your credit score helps shape both eligibility and loan terms. If you haven't checked it recently, you could be applying mindlessly. A quick look can help you understand what a lender might see—and what you could improve.

Applying before your business is ready

Starting too early—before you have revenue history or a solid plan—can work against you. Lenders want signs of stability. Rushing in might hurt your chances, especially if you plan to reapply later.


8 steps before applying for a business loan

Use this as your checklist before you apply for a loan:

1. Determine Loan Purpose

What will the loan be used for—equipment, staff, a new location? Clarity here helps you match the loan type to the business need.

2. Calculate the Amount You Need

Borrowing more than you need increases costs. Borrowing too little could leave you short. Know the amount.

3. Check your Eligibility

Before you apply, check if your business meets typical lending criteria. Every lender is different, but most look at:

• How long you've been trading – usually 6–12 months minimum

• Revenue – regular income helps show you can manage repayments

• Credit score – both business and personal scores may be considered

• Registration status – having an ABN or ACN is often required

• Residency – most lenders require you to be a citizen or permanent resident
  
  

If you're still in the early stages, a strong application might still qualify you—just be prepared to share more supporting documents.

4. Gather Required Documents

Typically, you'll need:

• ABN (Australian Business Number) or ACN (Australian Company Number)

• Business financials

• Bank statements

• Proof of income

• ID and legal documents

5. Compare Loan Types

Not all business loans are created equal. Some are secured, others aren't. Some offer lump sums, others are more like flexible credit lines.

6. Assess Repayment Capacity

Ensure your business cash flow can handle regular repayments, especially during slower periods.

7. Prepare a Business Plan

A business plan helps lenders understand your goals and how you'll use the loan. Include projected revenue and expenses.

8. Review Your Credit Score

A better credit score often means more options and better terms. If yours is low, consider improving it before applying.



Business Loan requirements in Australia

Some lenders are stricter than others, especially banks. Online lenders often have more flexible criteria. While exact requirements vary by lender, here's what's commonly expected:

Age: You must be 18 or older

ABN or ACN: An active Australian Business Number or Company Number

GST Registration: Required if your business earns over $75,000 per year

Trading History: At least 6–12 months in business is often preferred

Credit Score: Your personal and/or business credit will likely be checked

Revenue: You'll need to demonstrate enough income to cover repayments

Types of business loans available

Here's the list of the main loan types you'll come across:

Secured Business Loans

These are backed by an asset—the equipment or property. They usually come with lower interest rates but may be more risky if you default.

Unsecured Business Loans

No collateral required, but interest rates may be higher. Easier to access for newer businesses with healthy cash flow.

Equipment Finance

Tailored for buying gear, machinery, or vehicles. The equipment often acts as security.

Invoice Financing

This lets you access funds tied up in unpaid invoices. Good for managing cash flow.

Line of Credit

You're approved for a set amount and only pay interest on what you use. Useful for ongoing or short-term needs.

Working Capital Loans

Designed to cover day-to-day operational costs, not long-term investments.

How much deposit for a business loan?

Wondering how much deposit you need for a business loan in Australia?

It depends on the loan type:

Secured loans often require a deposit of 20–30%

Unsecured loans typically don't need one

Some lenders offer no-deposit loans, especially for small or short-term borrowing

Alternative securities, like personal guarantees, may also be accepted.

Also, always check the lender's policy—some allow flexibility if your credit and cash flow are strong.


Should I get a business loan?

The quick answer is: make sure the loan supports, not stresses your business.

A business loan can be a smart move when:

• You're expanding operations

• You need to invest in growth

• Cash flow is tight, but revenue is consistent

• You've done the maths, and the repayments fit your budget
  
  

But it may not be the right time if:

• Your income is unstable

• You don't yet have a clear repayment strategy

• The loan is a short-term fix for deeper financial issues

Use a personal loan or line of credit to support your business

At Credit24, we don't offer business loans. But our personal loans and credit lines can be used for business-related needs—like getting your idea off the ground, bridging a cash flow gap, or funding a small upgrade.

If you need flexibility, our line of credit option lets you borrow what you need, when you need it, and only pay for what you use.

With Credit24, you get:

• A fast, online application

• Loan amounts from $500 to $10,000

• Repayment terms up to 36 months

• Personalised interest rates

• No early repayment fees

• Funds transferred quickly, if approved
  
  

Credit24 could be your support when you're building something new or just keeping your business moving.