Our verdict Only with property
The short answer
Only with property security, in most cases. Without any revenue there's no turnover for an unsecured lender to size a loan on, so those options are generally closed. A property-secured business loan can still be considered, because it's assessed on the property's equity, the business purpose and a realistic plan to repay — not on sales that haven't happened yet.
Key points
- Unsecured lending needs turnover to size a limit, so pre-revenue businesses usually can't use it.
- Property-secured loans can fund a launch if the equity and the repayment plan are sound.
- Lenders want to see your own money in the venture as well as theirs.
- A realistic plan beats an optimistic one — especially the part about how you'll repay.
Can anyone lend to a business that hasn’t made a sale?
Yes — but the door is narrow, and it’s usually made of bricks and mortar.
Think about how an unsecured business lender works. They look at your bank statements, see how much money flows through, and size a limit that the business can realistically repay from that flow. With no revenue, there’s no flow. That’s why unsecured, cash-flow and line-of-credit options (typically $5,000 to $500,000 for trading businesses) are generally closed to pre-revenue businesses.
The RBA’s October 2025 Bulletin did note some lenders extending unsecured lending to startups with a detailed business plan — but initially only for small amounts. For anything meaningful, you’ll almost always need security.
How does property change things for a pre-revenue business?
A property-secured business loan — $20,000 to $5,000,000, via a first mortgage, second mortgage or caveat over residential or commercial property — is assessed around three questions:
- Is there enough equity? The property is what protects the lender if the plan doesn’t work.
- Is the purpose genuine and sensible? Launching a business is a business purpose.
- How will it be repaid? This is the crux for a pre-revenue business.
The third question deserves the most thought. Lenders commonly see repayment plans such as:
- refinancing to a longer-term facility once the business has trading history;
- selling an asset (a property, a vehicle, another business interest);
- paying down from other income while the business ramps up.
A plan that relies entirely on the new business hitting ambitious targets in its first months is the weakest version. A plan with a fallback is much stronger.
Launching soon and want to know what’s realistic? Tell us about it — 60 seconds, and no credit check just for asking.
What should a pre-revenue business prepare?
business.gov.au suggests lenders will want to see your business plan, proof of identification, financial forecasts, lease agreements and your personal financial information. For a business with no trading yet, that’s the whole file.
| Item | Why it matters pre-revenue |
|---|---|
| Business plan | The main evidence the business is viable |
| Costings and quotes | Shows exactly where the money goes |
| Forecasts (realistic ones) | How and when revenue should start |
| Property details | The security the loan relies on |
| Your contribution | Savings you’re putting in yourself |
| Repayment plan | Refinance, sale or other income |
| Signed contracts or letters of intent | Early evidence that customers exist |
Your own contribution is worth highlighting. A lender is far more comfortable when you’re sharing the risk.
An illustrative example
This example is illustrative only.
A couple want to open a childcare-adjacent business: a before-and-after-school program run from a leased hall. They need $140,000 for fit-out, equipment, compliance and three months of wages before enrolments build.
- No revenue yet, so unsecured lenders decline.
- They own a home with a mortgage and a lot of equity. A second mortgage behind their existing loan is considered.
- Their plan shows enrolment targets, a signed lease, the approvals they need, and a fallback: one partner keeps a full-time job, which covers the loan repayments if enrolments are slow.
- The fallback is what makes the plan credible.
What if I don’t have property?
Then the realistic path is usually to start smaller and build history:
- fund the launch from savings, a partner’s contribution or a smaller personal budget;
- start trading, keep every dollar running through a business account;
- come back once you have a few months of statements — see our three-month page for what changes as history builds.
If a family member is willing to help, our page on using a partner’s or relative’s property explains how third-party security works. And if you’re growing a side business into a full-time one, our guide on going full-time with a side business may suit you better.
What does a lender look for in a pre-revenue plan?
A business plan for lending isn’t a glossy pitch deck. It’s a practical document that answers a lender’s questions. The pre-revenue plans that work best cover:
- What the business does — in two or three sentences, without jargon.
- Who the customers are and why they’ll buy from you.
- What the money pays for — itemised, with quotes.
- When revenue starts — realistically, with the assumptions shown.
- Your break-even point — how many sales per month cover the costs, including loan repayments.
- Your experience — why you’re the person to make it work.
- The repayment plan and the fallback — what happens if revenue takes longer.
Keep forecasts modest. A lender who sees a plan that breaks even in month two will quietly assume the numbers are wishful. A plan that assumes a slow ramp-up — and still works because of a fallback — earns far more trust.
If your business already has a little trading, even a few weeks, our three months trading page may fit better. And our guide to explaining your situation to a lender shows how to keep the whole thing to a page.
Talk to a real person before you launch
Starting from zero takes courage, and borrowing against property to do it is a serious decision. A straight conversation about what’s realistic — and what the repayment plan should look like — is worth having early.
You can ask without a credit check being run, and your enquiry won’t be fired off to a string of lenders. A real person looks at your plan and your security and calls you. Please be honest on the form about where the business is up to and what property is available, so the first answer you get is one you can rely on. Start your enquiry.
Frequently asked questions
Can I get an unsecured startup loan with no revenue?
It's rare. The RBA has noted some lenders offering small unsecured amounts to startups with a detailed business plan, but most unsecured business lending is sized on turnover, so without sales the options are very limited.
What can a pre-revenue business borrow for?
Genuine business set-up costs — a fit-out, equipment, first stock, a lease bond, a vehicle, initial marketing or wages during launch. It must be for business purposes.
How will I repay a loan if I have no income?
That's exactly what the lender will ask. Common answers include refinancing once the business is trading, selling an asset, or income from another source. The plan needs to be believable.
Do I need a business plan?
It helps a lot. business.gov.au notes lenders usually want to see a business plan before approving a loan. For a pre-revenue business, a clear plan with costings and a forecast is one of the few things you can show.
Does it matter whose name the property is in?
Yes. If it's in your name, it's straightforward. If it belongs to a partner or family member, they'll need to agree to offer it as security and usually get independent advice.