Centrelink business loans

Having a solid business idea, a proven track record and passion will help your Centrelink business loan application.

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You can still get a business loan if you're on Centrelink. If you have a solid business idea and can show it has potential, you may be able to get the funding to make it a reality. You can borrow up to $1,000,000 although the funds will need to be used for business purposes only.

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.

What business loan options are available for Centrelink recipients?

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 if you don't have an established business and you're on Centrelink. There are also options if you already have an established business.

  • The lenders below will consider your application based on the strength of your ideas, experience and personal drive.
  • These lenders can provide financing even if you're on Centrelink.
How does it work?What to knowLearn more
MaxFundingBusiness financing up to $1,000,000. 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.
MiFinanceIf 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.
More Info

Learn more about Government-backed business loans in response to Coronavirus

Expert overview: The 3 most important things about getting a business loan on Centrelink

  • Your options are more limited if you receive Centrelink benefits, but there are still a number of business loan options to consider.
  • The NEIS, which provides New Business Assistance, was specifically designed for Centrelink recipients who want to start and work full-time in their own business.
  • The key to being approved for a business loan is to carefully review the eligibility criteria and provide a clear, detailed explanation of how you meet the requirements.

What fees and charges should I expect?

The costs of business loans come in two forms.

  • Interest rates. These are set as a percentage and indicate how much extra you have to repay over what you borrowed. Borrow $100 at a 20% interest rate and you'll pay back $120 all up.
  • Fees. Different lenders have different fee structures. Watch out for account set-up fees when you sign up, ongoing monthly fees, exit fees if you cancel the account and early or late repayment fees if you deviate from the arranged payment schedule. These are some of the main fees to look out for, but there may be others. Lenders are required to make all fees clear and comprehensible.

What about the New Enterprise Incentive Scheme (NEIS)?

The NEIS is another possible option.

  • If you're currently participating in jobactive as a volunteer and enter the NEIS assistance program before the end of your period of service, you might be able to secure a place in the NEIS.

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.

Am I eligible for a business loan and the NEIS?

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:

  • Your business has been continually operating for a long time
  • Your business has demonstrated earning capability
  • You and your business are currently debt-free and have a strong credit history

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.

Changes to the NEIS eligibility criteria

In response to the impact of COVID-19, the Australian Government announced expanded eligibility criteria for the NEIS that now includes:

  • From 15 October 2020, people can access NEIS and start their own business if they are working 25 hours per week or less.
  • From 7 December 2020, existing micro-business owners impacted by COVID-19 can access NEIS if they need help to keep their business running or refocus their operations to meet new areas of demand.

Selection criteria is still fairly strict. To qualify for the application alone you must:

  • Be 18 or older, on an eligible Centrelink scheme and fully eligible for jobactive or disability employment services
  • Be participating in jobactive as a volunteer and commence in NEIS Assistance before the end of your service period
  • Not convert to an Age Pension before or during NEIS
  • Be available to participate in NEIS training and work full-time in the proposed NEIS business
  • Not currently be going through bankruptcy
  • Not have received NEIS assistance in the last three years or have ever received it for a similar business activity

And your business must:

  • Not be already operating on a commercial basis
  • Be independent when established
  • Be legal, upstanding and capable of withstanding public scrutiny
  • Have been assessed as commercially viable
  • Not be based on the takeover or purchase of an existing business
  • Not directly compete with an established business unless your business will do it differently or if you can prove there's unsatisfied demand in the area
  • Be operated and located entirely within Australia
  • Be structured so you'll always have a controlling interest over it
  • Not be a for-profit organisation unless approved by the Department of Employment

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.

What should I consider before applying?

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.

  • Don't expect it to be easy and be prepared for higher rates. Providers and investors may be more hesitant to lend to someone on Centrelink, but you may be able to counterbalance this to a certain extent with an outstanding business idea or by convincingly demonstrating the profitability of your new business.
  • Know how you'll spend the money in as much detail as possible. Your lender will want to know the money is being spent wisely and it can expect a return on investment.
  • Consider setting up a calendar around your repayment schedule and work to that. Keeping up with repayments is essential to keeping costs down because missing repayments can harm your credit rating and incur extra fees.
  • Money might be even tighter after you've taken out a business loan. All proceeds of that loan are expected to be used for business purposes only and the extra cost of repayments can make things tough unless you're sure your business can turn a profit.

FAQs about Centrelink business loans

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 $1,000,000. 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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16 Responses

    Default Gravatar
    TheMay 12, 2018

    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?

      Avatarfinder Customer Care
      JoshuaMay 13, 2018Staff

      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!


    Default Gravatar
    JaniceMarch 27, 2018

    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.

      Avatarfinder Customer Care
      MayMarch 27, 2018Staff

      Hi Janice,

      Thanks for your question.

      Generally, if you are receiving Centrelink payments and do not have an established business history, it might be difficult to find a loan. However, there are lenders above that may consider your application based on the strength of your ideas, experience, and personal drive. Kindly refer to the table above and review the “How does it work?” and “What to know” columns to learn more. You may also click on the More icon. This will redirect you to our review page for that particular loan where you will find more details such as features and steps to apply for the loan.

      You may also refer to other lenders financing Centrelink recipients. When you are ready, you may then click on the “Go to site” button if available and you will be redirected to the lender’s website where you can proceed with the application or get in touch with their representatives for further inquiries you may have.

      Alternatively, you may also consider the New Enterprise Incentive Scheme (NEIS program). 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. More information is found above.


    Default Gravatar
    KevinDecember 11, 2017

    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

      Avatarfinder Customer Care
      MayDecember 12, 2017Staff

      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 different brands from our list of business loans. 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. When you are ready, you may then click on the “Go to site” button and you will be redirected to the lender’s website where you can proceed with the application or get in touch with their representatives for further inquiries you may have.


    Default Gravatar
    EbenezerOctober 26, 2017

    How many years can I apply for the loan

      Avatarfinder Customer Care
      JudithOctober 27, 2017Staff

      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,

    Default Gravatar
    GREENLITEJuly 26, 2017

    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?

      Avatarfinder Customer Care
      HaroldJuly 27, 2017Staff

      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.


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