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Find out if you're eligible and compare your Centrelink business loan options below.
Please note: This page is for people who are on Centrelink and want a loan for establishing a business.
If you're on Centrelink and need a personal loan for non-business purposes, learn about your options here.
One of the more likely sources of business financing is a private lender. It can be difficult to find a business loan without an established business history, especially if you're on Centrelink, but one of these lenders below might be a good option.
These two Australian lenders can offer business loans even if you don't have an established business and even if you're on Centrelink. There are also options if you already have an established business.
How does it work? | What to know | Learn more | |
---|---|---|---|
MaxFunding | Business financing up to $30,000. Bad credit applicants will be considered. | MaxFunding is a very flexible lender, but you'll need to own an asset to be eligible. If you don't own an asset, other criteria will apply. | |
MiFinance | If you have an ABN, you can borrow up to $1,000 for business needs. | These are small, short term loans designed to cover essential business costs and get paid off quickly. Keep in mind that your Centrelink payments must make up less than 50% of your total income. |
Learn more about Government-backed business loans in response to Coronavirus
The NEIS is another possible option.
This program is for people on Centrelink who want to start and work full-time in their own new business. NEIS counts as a Centrelink-approved activity for up to 13 weeks from commencement. The business is required to be upstanding, lawful and preferably a not-for-profit.
This scheme gives outstanding applicants a range of free ongoing business support and mentoring services in addition to an allowance to help with successful establishment. There are 6,300 places available each year and competition is fierce.
The costs of business loans come in two forms.
Your eligibility for business loans depends on the provider. For many business loans you'll need to have been established for a certain amount of time and will need to have an annual turnover above a certain amount.
In the case of peer-to-peer lenders like Bigstone and Thincats you're generally eligible, but may find it very difficult to convince potential investors to get on board if you have a rocky financial history or former unsuccessful businesses. You'll generally have a better chance of successfully getting a business loan if:
There are often requirements around minimum monthly or annual turnover, and not all available repayment plans may be right for your needs, which can rule out other options.
In response to the impact of COVID-19, the Australian Government announced expanded eligibility criteria for the NEIS that now includes:
Selection criteria is still fairly strict. To qualify for the application alone you must:
And your business must:
If you're interested in NEIS, a good first step is to register for jobactive, if you haven't already. You'll need to do this anyway if you want to get into the program. You can learn more about it here.
Before applying for a business loan, you need to make sure you're ready and able to start the repayment plan. Remember, you'll need to pay back more than you've borrowed, so you need a plan that can make it happen.
How much can I borrow with a business loan on Centrelink?
It depends on the lender and how confident it is in your ability to repay the loan. MiFinance offers business loans up to only $1,000 while MaxFunding can lend up to $500,000. Decide exactly how much you'll need, as accurately as possible, then find lenders that offer this amount in their standard range.
How long is the typical repayment period?
The loan term can vary between providers and types of loan. For small, short term loans like those from MiFinance it's only a few weeks, but for bigger loans it's typically between six months and five years.
Will my repayments change or will they stay the same?
Fixed repayments mean the size of each will be the same and will stay consistent over the course of the loan, while variable rates can change. Both are available with business loans.
What happens if my application gets rejected?
The first thing you may want to do is ask your lender why your application was declined, as this can help you out with future attempts. It might not give a reply, but often will.
This can help highlight weaknesses in your business plan or application you might have missed. Remember, needs and circumstances change, so recheck the options if it's been some time since you last compared them.
Image: Shutterstock
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Hi
Im about to open a cafe in a rural area of Australia
Popelation here is 22,000
The town is about to expan here due to a new developments by goverment and a steelworks inverstor.
The food here is not the best
Due to my own medical condition I would like to offer a healthier choice of foods in my cafe.
I am on a dsp payment but subjected to change as soon as Im open for business due to centrelinks policy
Im currently a volunteer jobseeker.
Is there any start up loans I may be eligible as I need to hire staff at a minimum wage I will be needing to pay them $548.70 wage + $52.18 superannuation uniform.
Then my other expenses power water rent set up cafe dinning and kitchen.
Is there any help or loans i could be eligible please?
Hi Kylie,
Thanks for getting in touch with finder. I hope all is well for you. :)
Being on a Centrelink means you might have a limited option when it comes to business loans. Nevertheless, as long as you can demonstrate the viability of your business idea plus be able to meet your lender’s requirements, then you should be able to obtain a business loan.
On this page, you will find on our table one of your options. You may give it a try, directly get in touch with them by clicking on the “Go to site” green button.
I hope this helps. Should you have further questions, please don’t hesitate to reach us out again.
Have a wonderful day!
Cheers,
Joshua
Hi im on new start centrelink. I have spent 16,000 all ready on my new business. Hot dog cart. And im short $3,500 . Who lends to someone on a benefit.
Hi Janice,
Thanks for your question.
You can contact any of the lenders in green checks on this page and discuss your options and eligibility for a loan.
Cheers,
May
I have started my own real estate business i have sold 1 block of land and have 10 listings . As i have put all my money into setting up this business could i apply for a loan for more advertising
Hi Kevin,
Thank you for your inquiry.
As we are a comparison website, we may not able to recommend you a specific lender, although you can possibly compare the different brands on this page. There is also a guide on this about the different types of business loans you can go with depending on your needs. Best to contact a lender directly to discuss your eligibility or options.
Cheers,
May
How many years can I apply for the loan
Hi Ebenezer,
Thanks for contacting finder, a comparison website and general information service.
It would depend on the lender that you would choose. On the page you’re viewing, you may click “Go to site” and “More” to find out more information about the loan options.
To improve your chances of getting approved for a loan, please ensure that you meet the eligibility criteria and requirements of the loan option or lender and make sure to read the details, as well as the relevant Product Disclosure Statements / Terms & Conditions of the loan option before making a decision and consider whether the product or option is right for you.
I hope this helps.
Best regards,
Judith
I am on Centrelink disability job search.
I have been making arrangements with a Swidish company that exports stockfish but I have not been able to raised the money involved in order for me to recieve my first shipment. I have already gotten buyers who will clear the goods as soon as it arrived.
Do you think I can get a loan to start this business? What’s my chance of getting this and how soon?
Hi Greenlite,
Thank you for your inquiry.
The chance of your approval may very depending on the lender. As long as you can meet the eligibility criteria and the requirements you may be considered for the loan.
I hope this information has helped.
Cheers,
Harold
I’m on a disability pension and my credit report not good how can I get a loan to start my own personal business?
Hi Gary,
Thank you for your inquiry.
If you wish to improve your credit score you may want to consider the following option/s.
Improve Your Credit Score
Five ways to improve your credit rating
I hope this information has helped.
Cheers,
Harold
I have recently been asked to start a Distribution company for a skateboarding brand. I have just started but have had shops send orders to me. I am on Centrelink disability and really need some financial assistance as I can’t afford any more orders which means my business starts dying before it has had a chance to start. This is so important to me I’ve put in so much work and can see this business being immediately profitable as the first orders have put me in profit. Sorry very long question.
Thanks Oliver
Hi Oliver,
Thank you for your inquiry.
Just to confirm though, are you looking for a business loan that would accept Centrelink recipients? If so, the lenders that you may consider checking with for your options and eligibility are listed above. Please make sure to review the criteria and details of the loan product before you apply.
Meantime, if you are also considering of checking a personal loan, you may get in touch with a lender listed on this page.
Cheers,
May
My question is I’m a new start allowance but I want apply for a loan for car registration due on 112 of April 2017 pls let me know thank you
Hi Eliisapeta,
If you are receiving Centrelink and would like to apply for a loan, you can compare your options here.
Cheers,
Anndy