Funding your growth: Grants and business loans

Access to business financing for entrepreneurs in Australia

The number of women-led businesses in Australia is rapidly increasing, with women now owning 41.6 percent of small businesses in the country, opens in new window, according to the Australian Bureau of Statistics (ABS). Despite this progress, many female business owners face unique barriers in an already complex small business operating environment.

The Australian Small Business and Family Enterprise Ombudsman (ASBFEO) highlights that access to financing remains the biggest challenge, opens in new window facing women-led businesses in Australia and across the globe. Systemic discrimination continues to hinder funding opportunities – and even with a 46 percent increase in female business ownership over the past two decades – financial support for women-led businesses remains disproportionately low.

Jump to:

• Government business grants and programs
• Loans for startup and small businesses
• Unsecured loans for business
• Invoice financing for business
• Business vehicle and equipment loans
• Lines of credit for businesses
• Business credit cards
• Steps for completing your loan application

Targeted financial solutions, including tailored government grants, financial programs and loans for business owners, can all play a pivotal role in overcoming these obstacles to achieve sustainable, long-term business growth and stability.

This guide explores the various types of government grants, programs, and business loans available. It also offers practical tips for understanding business loans and the application process, outlining the steps required to secure small business funding.

Types of business loans and funding available

Government business grants and programs

Government programs offer some support to women entrepreneurs through grants and funding programs. Key initiatives include:

Women’s Leadership and Development Program

• These programs from the NIAA, opens in new window provide funding for projects that support gender equality and leadership opportunities for women.
• It’s designed to improve employment, economic security, leadership, and safety outcomes for women in Australia.

Boosting Female Founders

• The Boosting Female Founders program, opens in new window offers grants between $25,000 and $480,000 to women-led startups to help them scale.
• The primary objective of the program is to help women entrepreneurs obtain funding and overcome the disadvantages faced in accessing financial support.

South Australian Women in Business Programs

• The South Australian government offers several programs, opens in new window, including grant opportunities to support innovative businesses founded by women.
• These programs also include access to support, events, business mentoring and further education or skill development.

Government business grant finder tool

• Gaining access to business grants provided by the Australian government usually depends on your state of operation.
• Use the business grant and program finder, opens in new window to search by industry, location, business structure, objectives, status and more.

Loans for startup and small businesses

Choosing the right business loan could help provide financial support to cover startup costs like marketing and website design, equipment or vehicle purchasing, and employee recruitment. Some loans may also be used to expand operations or help stabilise and manage cashflow in a growing business.

NAB QuickBiz Loan

• This is an option potentially suited to small businesses or entrepreneurs, offering between $5,000-$250,000 unsecured with a quick online business loan application that can be completed in less than 15 minutes.
• While security assets aren’t required, you will need a track record of business performance with a turnover of at least $75,000 to meet the eligibility criteria for a NAB QuickBiz Loan.

NAB Business Options Loan

• Whether you’re looking to invest in growth or fund expansion, the NAB Business Options Loan offers competitive rates and flexible repayment terms to meet the needs of growing businesses.
• Suited to sole traders, partnerships, trusts, or registered companies, it can be secured or unsecured, and you can start the business loan application online.

Unsecured business loans

While unsecured loans like the NAB QuickBiz Loan don’t require collateral, they could be useful for some small businesses with limited assets. Learning about unsecured vs. secured business loans can help you determine the most suitable option depending on the financial circumstances of your business.

Invoice financing for business

Funding based on outstanding invoices can help manage business cashflow by providing upfront access to money owed by clients. Instead of waiting for your customers to pay, you can access up to 85% of the funds up front by selling your unpaid invoices to NAB.

NAB Invoice and Debtor Finance

• Unlock cash tied up in unpaid invoices to keep your business running smoothly with NAB Invoice and Debtor Finance.
• The facility can be easily accessed through NAB Connect, with a dedicated account manager available to provide guidance and business support when you need it.

Business vehicle and equipment loans

These are specialised loans for purchasing vehicles, machinery, or technology essential for your business operations. Commonly referred to as a chattel mortgage, business vehicle and equipment loans can be flexible and structured according to the individual needs of your business, with the asset used as security for the loan.

NAB Green Finance for Vehicles and Equipment

• Tailored green financing for equipment or vehicles help you invest in critical energy efficient assets.
• As a member of the Net Zero Banking Alliance, NAB is doing its part in helping businesses reduce their operational footprint by providing green financing options.
• This includes a range of eligible green assets like energy efficient agricultural equipment, EV and hybrid vehicles, waste management equipment, and much more.

Lines of credit for small businesses

A line of credit is an ongoing funding solution for short-term business needs, such as managing seasonal fluctuations or sudden expenses. You can draw down at any time, with funds accessed through your business transaction account.

NAB QuickBiz Overdraft

• This is a flexible business line of credit linked to your business account to cover short-term funding gaps.
• Available to new and existing NAB customers, you can apply for a NAB QuickBiz Overdraft online in 15 minutes.
• It acts as an unsecured business loan without requiring physical assets, though you will need proof of business performance, GST registration, and have an active ABN or ACN for at least 12 months.

Business credit cards

Credit cards can be a common alternative option for managing day-to-day expenses and earning rewards while maintaining control over spending. Let’s look at a couple examples:

NAB Low Rate Business Card

• Comes with a minimum facility credit limit of $5,000 and involves a fast online application process.
• Up to 55 interest free days to help manage cashflow and low interest on purchases.

NAB Rewards Business Signature Card

• Provides credit for expenses while earning points for business-related purchases, including payments made to the ATO.
• The points you earn are uncapped, and you can receive an instant decision when you apply for a business rewards credit card online.

These credit cards are a popular choice for businesses focused on security and fraud protection, control over staff business spending, and contactless payments. Learn more about other business credit cards, or use the business credit card selector tool to choose one suitable for your business.

Things to keep in mind

1. Prepare a detailed business plan

• A solid small business plan with clear financial projections demonstrates your business’s viability and reassures lenders.
• Provide a clear outline of your goals, and strategies for achieving them.

2. Build a positive credit history

• Maintain healthy financial habits and keep personal and business finances separate to build a strong credit profile.
• A higher credit score may increase your chance of business loan approval due to potential lower risk.

3. Network with women entrepreneur groups

• Learn from the experiences of others by regularly engaging with women’s business and finance networks for mentorship and advice.
• Listening to other women entrepreneurs who have already ventured through the application process is a great way to discover the unique needs of business banking for women.
• Gain complimentary access to financial resources for sole traders to continue developing your business finance literacy.

4. Organise the necessary documentation

• Gather essential documents such as your ABN, proof of income, tax returns, and any licences required for your business.
• The documents required to obtain business finance will largely depend on the type of loan you’re applying for.

5. Compare business loan options and understand rates

• Learn about business loan interest rates, account fees and charges.
• Identify specific solutions suited to the needs of your business by comparing business financing loans.

6. Submit your business loan application

• Complete your application and discuss your business goals, plans, and financial funding needs by speaking with a specialist business banker.
• Request a callback, or learn more about how a NAB Business Expert can help your business reach financial growth, stability, and success.