The short version
- To get a small business loan in Australia you need an active ABN, roughly six or more months of trading, and consistent revenue (about $10,000 a month or more for most non-bank lenders).
- The process is six steps: work out how much you need, pick the loan type, check you qualify, gather documents, apply, and settle.
- A major bank can take two to six weeks and still say no. A non-bank lender can approve in 24 hours to a few days.
- For most non-bank unsecured loans, bank statements and ID are enough. Banks add tax returns, financials, and often security.
- Checking your options doesn't touch your credit file. A credit check only happens if you choose to formally proceed.
"How to get a small business loan" is a simple question with a process that most lenders never actually spell out. You see the ad, you see the rate, and then you're in a form with no idea what happens next, what they're checking, or why one lender says yes in a day and another goes quiet for three weeks.
This guide walks the process end to end: the six steps, what lenders really assess, how the bank path differs from a non-bank or marketplace path, what a loan actually costs once you look past the headline rate, and what to do if your bank has already said no. It's written for the owner who wants to know how to get a business loan without wasting a fortnight learning it the hard way.
How to get a small business loan, step by step
However you apply, whether direct to a bank or through a marketplace, the underlying process is the same six steps.
- Work out how much you need, and what for. "I need money for the business" is how expensive loans get sold. "I need $40,000 for stock I'll sell in 90 days" is how good ones get structured. The purpose decides the product, so start with the job, not the amount.
- Pick the loan type. A one-off purchase suits a term loan or equipment finance. A recurring cash-flow gap suits a line of credit or invoice finance. If you're not sure how the products differ, how business loans work covers the mechanics.
- Check you qualify. Most non-bank lenders want an active ABN, six or more months of trading, and revenue around $10,000 a month or more. Banks want more (see below).
- Gather your documents. For a non-bank unsecured loan that's usually the last six months of business bank statements plus director ID. That's it. Banks add tax returns, financials, and sometimes an asset and liability statement.
- Apply, direct or through a marketplace. Applying to one lender gets you one answer. Applying across a panel with a single enquiry lets you compare real offers side by side rather than advertised rates, without a separate credit check for each one.
- Settle. Once you accept an offer, a formal credit check and verification run, documents are signed, and funds land. With a non-bank lender this stage is often same-day to 48 hours.
The whole thing can take anywhere from a single day to over a month. Which end you land on is almost entirely about which path you choose and how clean your bank statements are.
What lenders actually assess
Whether you apply to a bank as a new customer or to a non-bank lender online, five things decide the answer:
- Revenue. How much comes in, and how steadily. Lumpy or declining revenue is the single most common reason an application stalls.
- Time trading. More history means less perceived risk. Six months is a common non-bank floor; banks usually want two years.
- Credit file. Both the business and the director's personal file. A default doesn't automatically disqualify you, but it changes who will lend and at what price.
- Industry. Some sectors (construction subcontracting, hospitality) are treated as higher risk, which narrows the panel rather than closing it.
- Existing debt. Current facilities and repayments are weighed against your revenue to see what you can service on top.
Notice what isn't on that list for a non-bank unsecured loan: a business plan, forecasts, or property. Those matter to a bank. Most non-bank lenders read your recent bank statements and make a call.
Bank, non-bank, or marketplace: which path to apply through
The same business can get three very different experiences depending on where it applies.
| Bank (direct) | Non-bank lender | Marketplace / broker | |
|---|---|---|---|
| Who you deal with | Your bank's business team | One lender's credit team | One enquiry, many lenders compared |
| Typical approval time | 2 to 6 weeks | 24 hours to a few days | 24 hours to a few days |
| Documents | Financials, tax returns, statements, often security | Usually 6 months of bank statements + ID | Once, then shared across the panel |
| Rates | Lowest, if you qualify | Higher, priced for speed and risk | Whatever the winning lender offers |
| Choice | One policy, one answer | One policy, one answer | Multiple offers to compare |
| Best for | Established businesses with time and security | Newer businesses, or when speed matters | Owners who want options without applying five times |
The honest trade-off runs down the rate row. A bank is usually cheapest if you fit its policy and can wait. A non-bank lender is faster and more forgiving on trading history, but you pay for that. A marketplace doesn't change the underlying lenders, it just stops you applying one at a time and hoping.
A bank will take two to six weeks and may still say no after all of it. That's completely fine if you have time and you fit their box. Most businesses typing "how to get a small business loan" into Google at 11pm don't have six weeks, and won't know if they fit the box until the end. Be honest with yourself about which situation you're in before you spend a fortnight on the slow path.
Five real scenarios
The cafe fit-out. A cafe owner needs $60,000 for a refit before a lease renewal. It's a one-off spend against equipment and works, and the business has traded 18 months with steady card takings. A term loan or equipment finance on the fit-out fits, and clean statements mean a non-bank approval in a couple of days.
The tradie's ute and tools. A two-year electrical contractor needs a $45,000 ute plus $8,000 of tools. The vehicle can be financed against itself with car and vehicle finance, which is usually cheaper than an unsecured loan because the asset is the security. The tools can ride alongside.
The retailer's stock run. A homewares store needs $30,000 to buy stock in October that sells through December. This is short and seasonal, so a line of credit or a short term loan repaid as the stock converts beats a long facility that outlives the need.
The transport operator. An owner-operator is waiting on 45-day invoices while fuel and wages go out weekly. A term loan patches the symptom; invoice finance attacks the cause by advancing against the invoices themselves, and the limit grows as the work does.
The eight-month-old business. A business trading eight months with $40,000 a month in revenue is below most banks' two-year threshold but comfortably above the non-bank floor. This is exactly the gap non-bank lenders exist to fill, and there are real options from six months of trading.
The pattern: match the product to the shape of the need, not just to the amount. Get that right and the "how do I get approved" question mostly answers itself.
What it actually costs
Most people compare the headline rate. The rate is rarely what decides which loan is cheaper.
Take a $50,000 unsecured business loan over 12 months. The things that actually determine the cost are the interest rate, any establishment fee, the term, and the repayment frequency. A longer term lowers each repayment but raises the total interest. A weekly repayment schedule clears the balance faster than monthly.
As an illustration only, a non-bank unsecured loan of $50,000 over 12 months might carry an establishment fee of a few hundred to around a thousand dollars, plus interest that brings total repayments to somewhere above the $50,000 you borrowed, spread across the year. Your actual rate depends on your revenue, trading history, and credit file, so treat any figure you see advertised as a starting point, not a quote.
The trap is comparing two loans on their advertised rate when they use different fee structures and terms. A "low rate" with a big establishment fee over a short term can cost more than a higher rate with no fee. The way to compare like for like is the effective annual rate, which folds the fees and the term into one number.
Ignore the headline rate and ask for two figures: the total amount you'll repay, and the effective annual rate. Those two numbers, compared across every offer, tell you which loan is genuinely cheaper. Nothing else on the page does.
What you need to qualify
For most non-bank lenders on our panel, the baseline is straightforward:
- An active ABN (and usually GST registration for larger amounts)
- Around six or more months of trading
- Consistent revenue, commonly $10,000 a month or more
- Clean, recent bank statements (the last six months)
- Director ID
Banks assess the same fundamentals but set the bar higher: typically two years of trading, tax returns and financials, and often property or another asset as security.
Two things quietly kill more applications than anything else, and both are fixable: messy bank statements (dishonours, gambling transactions, a balance that lives at zero) and applying for more than your revenue can service. If your statements have a rough few months behind them, it's often worth waiting until they clean up before you apply, not after you've been declined. Newer businesses in particular have more options than they expect once they clear six months.
If your bank has already said no
A declined bank application doesn't mean the business isn't fundable. It usually means one lender's policy didn't fit, and bank policy is far narrower than the market.
Non-bank lenders assess differently. Many weight recent trading and cash flow more heavily than balance-sheet strength or property security, which is why a business with strong revenue and no property can be knocked back by a bank and approved by a non-bank lender in the same week. There are genuine alternatives after a bank decline, and unsecured options for businesses without property.
The trade-off is honest: non-bank pricing generally sits above bank pricing. If your bank has approved a loan on terms you're happy with, take it. This is the answer for when the bank has said no, can't help further, or can't decide inside a timeframe that's useful to you.
If you have time, security, and a clean two-year history, start with your bank, it's the cheapest money. If you're newer, faster-moving, or have already been declined, go straight to a non-bank lender or a marketplace and don't spend a fortnight relearning that the bank was always going to say no.
Common questions
How hard is it to get a small business loan in Australia?
Easier than most owners expect from a non-bank lender, harder than they hope from a bank. If you have an active ABN, six or more months of trading, and revenue around $10,000 a month with clean statements, a non-bank approval is realistic within days. A bank is a higher bar: two years of trading, full financials, and often security.
Can I get a business loan with less than 12 months trading?
Often yes. Many non-bank lenders assess from around six months of trading, provided revenue is consistent. Under six months, options narrow sharply and usually shift toward equipment finance secured on the asset, personal lending, or grants and investment rather than a business loan.
Does applying for a business loan affect my credit score?
Checking your options doesn't. At Funding Loop, enquiring and seeing indicative options doesn't touch your credit file. A formal credit check only happens if you choose to proceed with a specific lender, which is also why comparing several offers through one enquiry doesn't stack up multiple checks.
How long does approval take?
A non-bank lender can give an indication within 24 hours and settle within a few days. A major bank typically takes two to six weeks, because it assesses more documents and more of your overall position. Speed is one of the main reasons businesses choose a non-bank lender even at a higher rate.
Can I get a business loan from a bank as a new customer?
Yes, but banks tend to favour existing customers whose account conduct they can already see, and most want around two years of trading regardless. As a new customer with a shorter history, you'll often get a faster, more flexible answer from a non-bank lender.
What's the minimum revenue for a business loan?
There's no legal minimum, but most non-bank lenders look for around $10,000 a month in consistent revenue for an unsecured loan. Lower than that and the realistic paths are secured or equipment finance, a smaller facility, or building a few more months of trading first. Requirements scale with the loan size: bigger loans mean higher revenue expectations.
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General information only - it doesn't take your situation into account. Consider whether a product suits your business before acting, and get independent advice where you need it. No credit check to see your options. A credit check only happens if you choose to formally proceed with a lender.