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Small business loans can provide funding for everyday cash flow, stock purchases, equipment, staffing and business growth. Whether you run a café, retail store, trade business, professional service or another Australian small business, the right finance structure depends on what you need the funds for and how your business trades.
Formation Finance helps Australian small businesses explore funding options based on trading history, revenue, cash flow and business needs, with loan structures available for both short-term expenses and longer-term growth. If you have an active ABN, at least 4 months of trading and $10,000+ in monthly revenue, you can likely qualify. That applies whether you’re a company, a partnership or a sole trader, and even if your bank has already said no. Funding is available from $5,000 to $500,000, with unsecured options available for eligible businesses.
| Key Features | Small Business Loan |
|---|---|
| Loan amount | $5k – $500k (up to $5M with guarantees) |
| Term | 3 – 36 months |
| Repayment | Daily, weekly or monthly |
| Security | Unsecured options available |
| Min trading history | 4 months |
| Min monthly revenue | $10,000 |
| Interest rate from | From 12% p.a. (case-by-case) |
| Typical timeframe | Funds as fast as the same day, typically within 1–2 business days |
All figures are indicative only and not an offer of finance. Availability, terms and timing are subject to lender approval, credit assessment and receipt of required documentation. For business and investment purposes only.
Repayment estimator
Estimate repayments on a small business loan and see how the loan amount, term and indicative interest rate may affect your repayments.
We Need Just Three Things:
Meeting the minimum trading history and revenue requirements does not guarantee approval. Lenders will usually look at the overall financial position of your business before deciding how much you may be able to borrow and on what terms.
They may consider:
Because every business is different, eligibility and loan terms are generally assessed on a case-by-case basis.
Small businesses have different funding needs depending on how they operate, their cash flow cycle and the industry they work in. Small business finance can be used across a wide range of industries, subject to lender eligibility and assessment.
Sole traders may use business finance to purchase tools and equipment, cover operating expenses, manage uneven cash flow or invest in business growth.
Hospitality businesses may need funding for kitchen equipment, fit-outs, stock purchases, staffing or additional working capital during seasonal or slower trading periods.
Retailers may use a small business loan to purchase inventory, prepare for peak trading periods, renovate a store or invest in new sales channels.
Consultancies, agencies, clinics and other service businesses may use finance for staffing, technology, office improvements, marketing or short-term working capital needs.
E-commerce businesses may use funding to increase inventory, support marketing campaigns, improve fulfilment capacity or prepare for periods of higher demand.
Tradies and construction businesses may use funding to purchase tools and materials, cover labour costs, take on larger projects or manage the gap between completing work and receiving payment.
A family-run café in Melbourne’s inner north had a good problem: weekend queues out the door, and a kitchen that couldn’t keep up. A second coffee machine, a commercial oven upgrade and two extra weekend staff would fix it, but the bank wanted two years of financials and eight weeks to decide. Peak season was six weeks away.
Through Formation Finance, the owners secured a $45,000 unsecured small business loan, approved within one business day on the strength of their bank statements alone. The funds covered the new equipment, a minor fit-out to add eight more seats, and the first month of additional wages.
Six months on, weekend revenue is up 92% and overall monthly turnover has grown 38%, from $38,000 to around $52,500. The weekly repayment of roughly $640 represented about 7% of their monthly revenue at the time of borrowing, well within the comfortable range, and the extra trade covered it from the first month.
Loan type: Small Business Loan
Amount: $45,000
Term: 18 months
Purpose: Kitchen equipment, fit-out, additional weekend staff
Result: Weekend revenue up 92%, overall turnover up 38% in 6 months
Speed matters when an opportunity has a deadline. A well-sized small business loan let this café say yes to demand that was already at the door.
01 Apply in minutes
A 10-minute online form. No tax returns or financials for loans under $150K.
02 Verify your bank statements
Through a secure online link. No printing, scanning or chasing paperwork.
03 Get funded
Same-day funding at the fastest, typically within 1 to 2 business days of approval.
Yes, on exactly the same basis as companies: active ABN, 4+ months trading, $10,000+ monthly revenue.
Possibly. Non-bank lenders weigh your recent trading performance more heavily than your credit file. Consistent revenue and clear repayment capacity can outweigh past defaults, though pricing may reflect the risk.
Yes, and it actually helps. Lenders read your bank statements, so card takings and Uber Eats or DoorDash settlements are all verifiable revenue. Cash that never hits the bank doesn’t count for assessment.
A standard small business loan won’t fit yet. Private lenders loans against personal property security can be an alternative for early-stage businesses.
