How to Get Business Loans for New Businesses in Sydney: A 2025 Guide

Starting a business in Sydney has always been a bold move, but in 2025, it’s also an exciting one. With population growth, strong demand in local industries, and a shift toward digital services, the city is buzzing with opportunities, especially across the Northern Beaches and inner suburbs. 

But for many first-time business owners, one thing often stands in the way: cash. 

Whether it’s covering start-up costs, managing early expenses, or simply keeping things afloat during slow months, business loans for new businesses can offer a helpful push forward. For those with the right plan and paperwork, it’s a practical way to bring their ideas to life and keep the momentum going in a competitive market.

Let’s explore what these loans are, how to qualify for one, and how you can move forward with confidence as a new business owner in Sydney in 2025.

What Are Business Loans?

Business loans are a type of financing offered to companies to cover operational, growth, or start-up expenses. The lender provides a lump sum or line of credit, and the business repays it over an agreed period, typically with interest. 

These loans can be secured loans (backed by assets) or unsecured loans (based on creditworthiness and trading history).

In New South Wales, and especially Sydney, the demand for business loans has increased due to rising commercial rents, wages, and the cost of equipment. According to the Australian Bureau of Statistics, NSW had over 840,000 active businesses as of June 2024, and around 37% were less than five years old, many needing some form of external funding.

Data from the Reserve Bank of Australia shows that the average variable interest rate for small business loans in 2024 ranged from 6.5% to 11%, depending on risk and loan type. 

Sydney’s small business landscape is also shaped by its competitive property market. In the Northern Beaches, commercial lease rates have gone up by 6.8% year-on-year,  putting additional pressure on business cash flow and making loans a useful tool for managing costs.

What Are Business Loans for New Businesses?

Business loans for new businesses are designed specifically for startups or recently launched ventures. These loans help cover early-stage costs such as purchasing stock, hiring staff, or investing in marketing and technology. 

For many first-time business owners, personal savings alone aren’t enough, especially with Sydney's high cost of entry into markets like food, trade, and retail.

New businesses in Sydney often need funding to:

• Launch a product or service
  
  
• Rent or renovate a business premises
  
  
• Buy tools, tech, or equipment
  
  
• Build a website or run ads
  
  
• Handle day-to-day expenses before revenue starts flowing in

Common Challenges for Sydney Startups:

• Limited trading history — Most lenders prefer at least 6–12 months of financials.
  
  
• Tight cash flow — New businesses struggle with cash flow gaps and unpaid invoices.
  
  
• No collateral — Many new owners don’t have property or assets for secured loans.
  
  
• Documentation pressure — Expect to provide cash flow forecasts, detailed business plans, and financial projections even before your first sale.

In a city like Sydney, where competition is fierce, and overheads are high, having access to funds early can make all the difference. And that’s where business loans come into play.

What Business Loan Types Are Available for New Businesses (With Broker Help)

If you're starting fresh, choosing the right business loan can get confusing fast. A broker can help align your goals with the best options in Sydney and NSW, especially if you’ve got limited history or no assets.

Here’s a quick look at the loan types available to startup businesses and first-time owners in 2025:

1. Unsecured Business Loans

These don’t require property or assets as security. They’re ideal for startups with limited collateral but strong potential and a solid business plan.

2. Secured Business Loans

You’ll need to back the loan with a business or personal asset (like a vehicle or home). These often come with lower interest rates and are great for long-term funding needs.

3. Equipment Finance

Perfect for businesses needing tools, machinery, or tech from day one. This includes chattel mortgage or commercial hire purchase options.

4. Line of Credit

You’re approved for a set amount but only use what you need. Great for handling unexpected expenses and cash flow fluctuations in the early stages.

5. Startup Loans

Some banks and non-bank lenders offer tailored startup loans with lenient requirements. They may be smaller in size but offer quick access to working capital.

6. Government Grants and Loans

Available via business.gov.au, these funding options are ideal for startup businesses involved in innovation, sustainability, regional development, or exporting. Examples include:

• The Entrepreneurs’ Programme supports early-stage innovation with tailored advice and co-funded grants.
  
  
• The New Business Assistance with NEIS scheme helps eligible new businesses with mentoring and income support.
  
  
• The Export Market Development Grant (EMDG) reimburses businesses for promotional costs spent on building overseas markets.

Some of these grants are non-repayable, while others offer low-interest loans or matched funding. They're competitive but incredibly valuable for startups with the right vision and documentation.

7. Invoice Financing

You borrow against unpaid invoices, giving you access to funds faster. Handy for startups with accounts receivable but slow-paying clients.

Each of these options has pros and cons depending on your industry, financial position, and how long you've been trading. A broker can help you choose the type of business loan that aligns with your short and long-term goals without wasting time or damaging your credit file.

How Brokers Help New Businesses Get the Right Loan

Choosing the right lender can be time-consuming and confusing, especially when you’re juggling setup costs and paperwork. That’s where experienced Sydney mortgage brokers step in to simplify the path.

Here’s how brokers support new business owners:

• Assess your financial situation: Brokers look at your business model, personal income, and expenses to determine the right fit.
  
  
• Match you with the right type of loans: They compare multiple lenders, banks, and non-bank lenders to find options that align with your goals.
  
  
• Explain loan terms clearly: You'll understand interest rates, monthly repayments, and total cost over time before signing anything.
  
  
• Prepare financial statements: Brokers can guide you in compiling clear and lender-ready cash flow statements, tax return summaries, and basic financial statements.
  
  
• Handle the application process: Whether it’s an online application or direct to a lender, brokers can submit everything on your behalf, correctly and quickly.
  
  
• Negotiate flexible repayment terms: This includes options for repayment terms that fit your cash flow, including interest-only periods or seasonal schedules.

In short, brokers take the guesswork out of business lending, helping new businesses avoid rejections, delays, and poor loan matches.

Simplify Your Startup Loan Journey

Feeling stuck on where to begin with your business loan? Let our North Sydney mortgage brokers walk you through it, from choosing the right lender to preparing your documents. We’ll help you avoid delays and boost your approval chances. Call 0403 316 686 or visit Mortgage Brokers Northern Beaches to get started today.

Eligibility Criteria for Business Loans

Even as a new business, you may still qualify for funding, if you meet the basic requirements. In Sydney, lenders have different rules, but most look for a few key factors before approving a loan.

Here’s what you’ll typically need to meet:

• Minimum trading history – Some lenders require at least 3–6 months, but others will consider brand-new startups with strong plans.
  
  
• ABN registration – You must have a registered Australian Business Number (ABN) and be operating legally.
  
  
• Business bank statements – Most lenders want to see 3–6 months of transactions, even if early-stage.
  
  
• Proof of income or projections – Either actual revenue or strong cash flow projections supported by a realistic business plan.
  
  
• Tax return or individual income evidence – For sole traders, personal tax returns may be used instead of business financials.
  
  
• Credit history – A clean or improving record helps, but some non-bank lenders accept lower scores with other strengths.
  
  
• Identification and legal documents – This may include a lease agreement, ID, or partnership agreements.
  
  

How to Apply for a Business Loan

Applying for a business loan in Sydney might seem overwhelming at first, but it’s quite straightforward when broken down step by step. 

Here are the common steps for business loan application: 

1. Know What You Need

Start by figuring out how much funding your business really needs. Be specific. Break it down into costs like fit-out, stock, marketing, or cash flow support.

2. Choose the Right Type of Loan

Decide between options like unsecured business loans, equipment finance, or a line of credit based on your needs and risk profile. Matching the right type of loan with your cash flow and stage of business improves your chance of success.

3. Gather All Required Documents

You’ll need to provide documents such as financial statements, cash flow statements, business plan, bank statements, ID, and tax return (personal or business). Having these ready reduces delays and shows you're organised.

4. Compare Lenders and Loan Terms

Use a broker or online comparison tools to find the best-fit loan terms for your financial situation. Look at interest rates, fees, repayment terms, and whether the lender works with startups or early-stage businesses.

5. Complete the Loan Application

This can usually be done online or in person, depending on the lender. You’ll provide all required information and upload your documents; the application process usually takes less than an hour.

6. Pay Any Application or Establishment Fees

Some lenders charge an establishment fee or application fee, often ranging from $200 to $1,000 depending on the loan amount and lender. These are usually added to the loan balance or deducted upfront.

7. Wait for Approval

Approval timelines vary. Online lenders may approve in 24–72 hours, while traditional banks may take 1–3 weeks. You might get conditional approval first; this means you're approved based on further checks or document submission.

8. Review and Sign the Loan Agreement

Once approved, you’ll be given a loan agreement outlining key terms, monthly repayments, total loan cost, interest rate, and any repayment fees. Review this carefully or ask a broker to explain the fine print.

9. Funds Are Disbursed

Once signed, funds are transferred, usually within 1–3 business days. Some flexible business loans offer a drawdown option if you don’t need the full amount upfront.

10. Start Making Repayments

Your repayment schedule begins based on the agreement. This could be weekly, fortnightly, or monthly. Stay on top of payments to avoid late fees and protect your credit history.

New Business? Let Us Find the Right Loan for You

Starting a business is hard enough; don’t stress over loan choices and paperwork. Our expert North Sydney mortgage brokers help new business owners match with the best funding option based on their needs, budget, and cash flow.

Reach out at 0403 316 686 or explore options at Mortgage Brokers Northern Beaches.

Frequently Asked Questions (FAQs)

How to get a loan to start a business in Australia?

Start by registering your ABN, preparing a business plan, and collecting documents like financial projections and ID. Then apply through a bank, online lender, or broker who works with startups.

What is the $10,000 small business grant NSW?

It was a COVID-19 relief grant offered in 2020 for eligible small businesses affected by lockdowns. As of 2025, that specific grant is no longer active, but current NSW grants can be found at service.nsw.gov.au.

How much deposit do I need for a business loan in Australia?

Deposit requirements vary; some secured loans may ask for 20–30% upfront. But many unsecured loans and fintech options need no deposit, just a strong financial case.

Which bank is best for startup business loans?

Commonwealth Bank and ANZ offer startup-friendly products with tailored features. However, some non-bank lenders like Prospa or Lumi may offer faster approvals for new businesses.

Can you get a business loan with no deposit in Australia?

Yes, especially through unsecured business loans or invoice financing. These don’t require a deposit but may come with higher interest rates or stricter repayment terms.

Wrapping It Up

Starting a new business in Sydney in 2025 comes with plenty of excitement and just as many decisions. Choosing the right business loan is one of them, but you don’t have to figure it all out on your own. 

As experienced mortgage brokers based in North Sydney, we work with new business owners across the Northern Beaches and greater Sydney area to help them make smart, informed loan choices from day one. Whether you need help comparing lenders, putting together your documents, or understanding your repayment terms, we’re here to simplify the process.

Our team offers a free consultation so you can ask questions, talk through your goals, and explore the best options without pressure. Call us at 0403 316 686 or visit Mortgage Brokers Northern Beaches to book your session.