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Peter Watson
Sydney, New South Wales Australia

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Is It Hard to Get a Business Loan

Business loans are a crucial part to the success of ones business. At some point you will need to be familiar with the process.
Written Jan 13, 2012, read 2204 times since then.


A start-up business, regardless of its size, always requires a firm foundation in order for it to succeed. As an investor in a new venture, you will have to become knowledgeable in commercial finance, planning, market research, and advertising. Understandably, acquiring loans to maintain adequate cash flow is especially important.

What you should know
The Australian Business Initiative notes that grants for small businesses are available from your local council, and the state, territory or federal government. While only a few of them are available for business start-ups, more grants are generally provided for expansion, and others are intended to be used for development, research and innovation. Not surprisingly, there are variety of loans are available through well-known financial institutions, and the Australian government has small business loans for you to consider as well.

If you visit the Australian Government Funding Centre’s website, you can easily determine which grants you may qualify for with only a few clicks of the mouse. For instance, if input “business,” you will find a list of 57 state and 39 federal grants. If you add a few details, you might discover that you are eligible for up to AU$250,000 in “proof of concept” grants related to a product, and up to AU$15,000 for other small business grants. Note that the type of grant, the available funding and your eligibility are all based on the state where you are located and the type business you own.

Categories of available business loans in Australia:

● If you need funding for a start-up business, you can obtain financing for business loans Australia, which is provided by several of the country’s major banks. In this case, the money must be used to purchase the material, equipment and tools you need in order to function.

● Entrepreneurs whose businesses are well-established can qualify for an expansion loan. In this situation, the business must be growing at a steady pace, which creates the need to buy additional equipment to enhance the company’s production capability and meet customers’ demands in a timely manner.

● Financing your inventory will ensure that you have sufficient products to fulfil the needs of your target market, and you can also use these funds to buy the materials you require to provide your clients with a particular service that you offer.

● If your business has an urgent need to transport equipment and supplies at some point, this problem can be solved by obtaining a motor vehicle loan. As a rule, Australian banks offer their customers both lease and purchase options for these vehicles, which makes them affordable.
● If your business calls for large industrial equipment to be used in producing your products, leasing is a viable option for you. Generally speaking, this is a more feasible choice for the typical small business than purchasing what you require.

● If you need a place for conducting business, a brick and mortar site, there are several financial institutions that deal with mortgages of commercial space. In addition, many of them are highly flexible in regard to the payments terms and length of the loan period, which will have a positive effect on your cash flow.

● Because the Australian government provides support via its partnership with commercial banks, businesses of any size can engage in export, import or domestic trading. The process for a trade financing loan may be somewhat more complicated than traditional commercial business loans negotiations, but it is worth looking into and can contribute to making your business a success.

For more information and assistance in finding the business loan you need, visit or

Learn more about the author, Peter Watson.

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