Choosing between startup funding options in Australia is one of the first big decisions a founder makes, and it shapes a lot of what follows: how much control you keep, how much pressure your early cash flow is under, and how quickly you can move. There’s no single right answer. There’s the right mix for your business, your stage and your appetite for risk.
You’re in good company. The ABS counted 460,461 new businesses entering the Australian economy in 2025–26, an entry rate of 16.9 per cent. The same release shows an exit rate of 13.8 per cent, a reminder that how a business is funded in its first year matters. This guide sets out every realistic option, including the trade-offs most funding pages skip.
What are the main startup funding options in Australia?
There are seven main sources. Most successful startups combine two or three of them.
| Option | What you get | What it costs you | Speed | Best for |
|---|---|---|---|---|
| Owners’ savings | Full control of the money | Your own financial risk | Immediate | Early costs, showing commitment |
| Family and friends | Flexible money from people who know you | Relationships if things go wrong | Fast | Small early amounts |
| Startup loan | A lump sum you repay over time | Repayments from early cash flow | Fast once assessed | Fit-outs, stock, launch costs |
| Equipment finance | The equipment you need, paid over time | Repayments; the equipment is usually the security | Fast with a supplier invoice | Vehicles, machinery, tools, tech |
| Grants | Money that usually doesn’t need repaying | Time to apply; strict conditions | Slow and competitive | Specific projects such as R&D or exporting |
| Angel or venture investors | Capital plus expertise | A share of ownership and future profits | Slow | High-growth, scalable ideas |
| Crowdfunding | Money from many small backers | Campaign effort; equity if it’s crowd-sourced equity | Medium | Consumer products with a community |
Should I use my own savings?
Almost every startup starts here, and for good reason. Your own money is instant, has no application process and shows lenders and investors you’re committed. The trade-off is personal risk. A sensible approach: fund the early, uncertain stage from savings, keep a personal buffer you don’t touch, and look at finance for costs that will clearly earn their keep, like equipment.
Can a startup get a business loan?
Yes, though it’s assessed differently from an established business. Standard business loans rely on months of bank statements. A startup under 6 months old doesn’t have them, so the assessment shifts to other things.
FastBiz Loans offers startup business loans from $5,000 to $150,000 for businesses under 6 months of trading. Each is assessed case by case on:
- Owners’ experience — a chef opening a restaurant after 15 years in kitchens is a very different proposition from a first-timer
- Assets — what the owners bring, such as equipment, vehicles or savings
- Security — anything offered to support the loan
- Plans — a clear business plan and cash flow forecast showing how repayments will be met
Honest trade-off: repayments start while revenue is still building, so your forecast needs to show you can carry them in the slow early months. Borrowing less than the maximum and keeping a buffer is often the smarter play.
Is equipment finance a good option for startups?
Often, yes. It’s one of the most accessible forms of startup finance, because the equipment usually forms the security. A new tradie buying a ute and tools, a cafe buying a coffee machine, or a courier business buying a van can spread the cost while the equipment earns. Equipment finance runs from $10,000 to $500,000 for new or used items, with repayments often matched to the working life of the equipment.
Honest trade-off: it only funds the equipment, not wages, marketing or rent. You’ll still need working capital from somewhere else.
Can I get a government grant to start a business?
Usually not for general start-up costs. business.gov.au is direct about this: the government doesn’t provide finance for starting up or buying a business. Grants and programs exist for specific purposes, such as research and development, expanding, exporting and regional growth, and state and territory governments run their own.
The best place to search is the business.gov.au grants and programs finder. It takes less than five minutes and lets you filter by:
- Your location, including regional and rural areas
- Your industry
- Your business structure
- The type of support, from funding and loans to advice, mentoring and rebates
- What you’re trying to achieve, such as exporting or R&D
- Your business stage, including businesses under 2 years old
Honest trade-off: grants are usually competitive, tied to a specific project and slow to pay out. Many require you to spend first and claim later, or to match the funding yourself. Treat a grant as a bonus for a specific project, not the foundation of your start-up budget.
Should I bring in investors?
Investors suit startups with a big, scalable idea — the kind that could grow far beyond a single location. Angel investors and venture capital funds provide capital and, often, useful experience and contacts. In exchange, they take a share of ownership and future profits.
Honest trade-off: most small businesses — a cafe, a trade business, a salon — aren’t what equity investors look for, and giving away a slice of a steady local business is usually an expensive way to fund it. Raising equity also takes months.
Is crowdfunding worth it?
Crowdfunding comes in two main forms. Rewards-based crowdfunding lets backers pre-order or support a product. Crowd-sourced equity funding lets eligible companies sell shares to the public through a licensed platform; ASIC says companies can raise up to $5 million in any 12-month period, with retail investors capped at $10,000 per company each year.
Honest trade-off: a campaign is a marketing project in itself. It works best for consumer products with a story and a following, and much less well for service businesses.
Which funding mix suits my startup? A quick guide
- Starting a trade or service business? → Savings + equipment finance for the vehicle and tools.
- Opening a cafe, shop or salon? → Savings + a startup loan for the fit-out and stock + equipment finance for big items.
- Building a product with export or R&D potential? → Savings + grants finder + possibly investors.
- Launching a consumer product with a community? → Savings + crowdfunding.
- Trading for a few months already? → Check whether you now meet the six basics in our eligibility guide. Once you pass 6 months, the full product range opens up.
Start with the capital you can reach
For most founders, the fastest capital is the combination of what you’ve saved and what a lender will fund against your experience, your assets and your plan. If a startup loan or equipment finance could get you trading sooner, start the 60-second enquiry at apply now — it doesn’t affect your credit score — and a lending specialist will talk through what’s realistic. Not sure where you fit? The eligibility checker takes six quick questions.
Questions we get asked
Can I get a government grant to start a business?
Usually not for general start-up costs. business.gov.au states that the government doesn't provide finance for starting up or buying a business, though it does offer support for purposes such as research and development, expansion and exporting. State programs vary, so the grants finder is worth a search.
Can I get a business loan with no trading history?
It's harder, but possible. A startup loan for a business under 6 months old is assessed case by case on the owners' industry experience, assets, any security offered and the strength of the plan. Equipment finance can also work early on, because the equipment usually forms the security.
Is it better to borrow or bring in an investor?
It depends on how much control you want to keep and how quickly you can repay. Borrowing lets you keep full ownership but needs repayments. An investor doesn't need repaying in the same way but takes a share of the business and its future profits.
How much of my own money should I put in?
There's no fixed rule, but lenders and investors both like to see owners with something at stake. A meaningful personal contribution shows commitment and reduces how much you need to raise from others.
What is crowd-sourced equity funding?
It's a way for eligible companies to raise money from many investors through a licensed online platform. ASIC says companies can raise up to $5 million in any 12-month period, and retail investors are capped at $10,000 per company each year.
When does a startup become eligible for a standard business loan?
Most standard products need at least 6 months of trading and $5,000 or more in monthly revenue. Once you reach those, the full range of FastBiz Loans products opens up, assessed mainly on your bank statements.
Someone called offering me startup funding. Is it legitimate?
Be careful. business.gov.au warns that if you receive a call or email offering funding you haven't applied for, it's almost certainly a scam. Only deal with providers you've approached yourself.