The Ultimate Guide to Business Funding Options in Australia

So you’re building a business in Australia—and like every founder, you’ve hit that moment where cash flow alone just won’t cut it.

Maybe you’re launching a new product. Expanding interstate. Hiring your first employees. Or simply need breathing room after a tough quarter.

The good news? Australia offers a broad range of funding options for businesses at every stage. The bad news? Navigating them can feel like decoding a foreign language.

In this guide, we’ll break down all the major funding options available in Australia—from government grants to private investors—so you can choose the best fit for your business journey.

Self-Funding (Bootstrapping)

• Using your personal savings

• Retaining profits to fund growth

• Keeps ownership 100% yours—but limits how fast you can scale

Many Australian founders start this way, especially in early stages.

Friends & Family

• Borrowing or accepting investment from personal networks

• Pros: Flexible terms, trust

• Cons: Can strain relationships if things go south

Always put agreements in writing.

Bank Loans and Overdrafts

Traditional bank funding includes:

• Term loans (fixed repayments)

• Overdraft facilities for cash flow gaps

Banks like Commonwealth Bank, NAB, ANZ, and Westpac offer business loans.

Tip: Prepare solid financials and forecasts. Banks want proof you can repay.

Business Credit Cards

• Quick access to funds

• Useful for short-term expenses

• High interest rates if unpaid monthly

Great for small purchases, but not large capital needs.

Equipment and Asset Finance

• Loans or leases for vehicles, machinery, tech equipment

• Lenders secure loans against the asset

Perfect for businesses needing expensive tools without huge upfront costs.

Invoice Financing

• Borrow against unpaid invoices

• Helps improve cash flow

Popular options in Australia:

• Invoice discounting

• Invoice factoring

Providers include Scottish Pacific, Octet, and banks.

Government Grants and Incentives

Australia has generous programs, such as:

• R&D Tax Incentive: Refunds up to 43.5% of eligible R&D costs

• Export Market Development Grant (EMDG): Helps fund export activities. 

Check business.gov.au for updated lists.

Angel Investors

• Wealthy individuals investing personal funds

• Often invest $25k–$500k

• Bring mentorship and networks, not just cash

Australian networks include Sydney Angels, Melbourne Angels, and Brisbane Angels.

Venture Capital (VC)

• For high-growth startups

• Investments range from hundreds of thousands to millions

• Expect equity dilution and rigorous due diligence

Top VC firms in Australia:

• Blackbird Ventures

• Square Peg Capital

• Airtree Ventures

Private Equity (PE)

• Invests in more mature businesses

• Larger cheque sizes (often $10M+)

• Often seeks significant control or buyouts

PE is more suitable for established businesses looking to scale or restructure.

Crowdfunding

Two main types:

✅ Equity Crowdfunding

• Investors get shares

• Platforms: Birchal

✅ Rewards-Based Crowdfunding

• Backers get products, not equity

• Platforms: Kickstarter, Indiegogo

Equity crowdfunding has grown significantly since Australian laws changed in 2018.

Trade Finance

• Short-term loans to pay suppliers before goods are sold

• Crucial for importers or businesses with long supply chains

Australian providers include Octet, Fifo Capital, and banks.

Export Finance

• Export Finance Australia (EFA) provides support

Ideal if your business is scaling into international markets.

Non-Bank Lenders

Alternative lenders often approve loans faster than banks but at higher rates:

• Prospa

• Moula

• Lumi

Good for businesses needing speed, but compare costs carefully.

Alternative Finance Platforms

• Peer-to-peer lending like Plenti

• Revenue-based finance like Swoop Funding

• Merchant cash advances like Earlypay

These newer models can be faster and more flexible—but watch interest rates and fees.

Key Takeaway

Australia’s funding landscape is diverse—and no single option fits every business.

Ask yourself:

• How much funding do I need?

• How quickly do I need it?

• Am I willing to give up equity?

• Can I handle repayments?

Knowing your options—and the trade-offs—helps you fund your vision without putting your business at risk.

Exploring funding for your Australian business? Drop a comment or get in touch—we’d love to help you map the best path forward.