From the desk of a finance broker

Starting a business is one of the most exciting decisions you’ll ever make. But as a finance broker, I’ll be honest — securing financing for a new venture is far harder than most people expect. Here’s what you need to know before you hand in your resignation letter.

Lenders Want a Track Record Before They’ll Back You

Most banks won’t consider extending funds until your business has been operating for one to two years. They want trading history and real cash flow evidence — not projections. This means in those critical early months, you’re largely funding yourself through savings, family loans, or credit cards.

Hence if you are planning for a debt consolidation or equity release to fund your new venture – consider doing it before resigning.

Expect Expensive Rates

When you do qualify, don’t expect friendly pricing. Lenders price for risk, and a new business is high risk. Rates can be significantly higher than you’re used to, putting real pressure on cash flow when margins are already tight. Always stress-test your projections against higher borrowing costs and build a buffer.

Property Ownership Changes Everything

Business owners that owns a home will get access to better rates and terms — lenders will view that you have access to the equity of the home should the need arises.

Business owners that are renters face higher rates, lower limits, and tighter conditions. It’s a challenging dynamic for those hoping the business itself will generate the wealth to one day buy property.

The Smarter Play? Lock In Financing Before You Leap

While you’re still employed, you’re at your most attractive to lenders — provable income, demonstrated stability, and potentially property to offer as security.

Use this window for debt consolidation, equity pull out to fund your new venture before transitioning out of employment or consider using your time as an employee / PAYG to purchase a home first before venturing out (whilst hustling as a part timer towards your aspirations)

Once you go out on your own, those doors become much harder — and much more expensive — to open.

Plan smart. The strongest foundation for your business isn’t just a great idea — it’s entering entrepreneurship with your financing already in place.

Let’s have a chat to plan your financing strategy for both your personal and business goals. Here for you.