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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

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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.

99+ customer reviews

5.0

Aktaruzzaman Rasel

Aktaruzzaman Rasel

Thank you Neeraj Indraghanti and his team. Really apricated you help to getting the loan when we needed. We had an amazing experience with this company. We are so pleased with the service received from Neeraj. He went above and beyond to help us get out of the situation. The loan process was easy and hassle free. Looking forward to use your service in future too.
Tabitha Pomente

Tabitha Pomente

Working with Saroj and the Bronc Finance team has been an incredible experience. Their professionalism, knowledge, and support throughout the process have been outstanding. I couldn’t be happier with the service and results — highly recommended!
Don Hett

Don Hett

⭐️⭐️⭐️⭐️⭐️ Highly Recommend Saroj from Broc Finance! Saroj was incredibly helpful from start to finish. He listened to all my requirements, understood my situation, and got me the funding I needed super fast. I really appreciate how efficient and responsive he was throughout the whole process. If you’re looking for someone who actually cares and gets the job done without delays, Saroj is your guy. I highly recommend him for anyone needing funding support. A big thanks to Saroj and the team at Broc Finance for their great work. Wishing you all the best!
Mugdha Chandekar

Mugdha Chandekar

A Trusted Partner in Commercial Finance I had the pleasure to discuss with Broc Finance on a complex commercial mortgage transaction, and I can confidently say they are the experts and professinals in this space. If you're looking for a commercial mortgage broker who brings clarity, integrity, and genuine commitment to the table, Broc Finance is the one to call. Highly recommended for any business owner seeking tailored financial solutions.
Yogendra Jayadeva

Yogendra Jayadeva

Partnering with Broc Finance (and Saroj) has been a fantastic experience—seamless support, quick turnaround, and successful outcomes for even the trickiest business loan scenarios. Highly recommend them for reliable and efficient Business lending solutions!
Deepesh Parikh

Deepesh Parikh

Saroj knows his business. To the point guidance, everything from start to finish was as expected and confirmed by him. Always recommend him for sorting it your personal or business finances. Thanks a lot for all your help Saroj.
Daniel Butel

Daniel Butel

Saroj and the team are great, they are open and transparent with advice. Truly are advocates for your business and help to cut through the finance jargon that’s hard for business owners and operators to decipher
Zoltan Matrof

Zoltan Matrof

I wanted to express my sincere gratitude for your outstanding support in helping me secure finance. Your professionalism, clear communication, and dedication made the entire process smooth and stress-free. I truly appreciate your expertise and commitment—thank you for going above and beyond to assist me! World Gym Busselton

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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 [email protected] 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 [email protected]

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