Key takeaways
- Centrelink doesn't offer business loans, but you can still apply for regular business loans while on Centrelink.
- If you're looking to start your own business you can apply for financial support and training through Centrelink via the New Enterprise Incentive Scheme (NEIS).
- The key to being approved for a business loan is to carefully review the eligibility criteria. You should provide a clear, detailed explanation of how you meet the requirements.
Business loans you can apply for while on Centrelink
How does it work? | What to know | Learn more | |
---|---|---|---|
MaxFunding | Business 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. | |
Bigstone | You can borrow between $10,000 and $5,000,000 | Loans are granted and managed online. Once you apply, the loan will be listed on Bigstone's marketplace for up to 14 days. Individual investors can apply to fund you. The interest rate is calculated on your business's risk profile. | |
ThinCats | You can borrow between $50,000 and $300,000. | You can apply directly through ThinCats, a sponsor or via an introduction. Your application will be assessed by the ThinCats credit team. They will help you prepare an information packet to be presented to investors. A loan auction will be held to fund your loan. Interest rates will be determined during the loan auction. |
Can I apply for a business loan if I am a Centrelink recipient?
If you receive payments from Centrelink, getting a traditional business loan may prove to be difficult. It may also be difficult to find a business loan without an established business history. However, there are business loans you can apply for, such as the following:
- Non-bank business loans. Non-bank lenders include independent lenders and neobanks. These institutions are smaller than traditional banks. They generally provide cheaper, more competitive loans. Their lending criteria are also more flexible.
- Peer-to-peer business loans. A peer-to-peer loan is borrowed from an individual investor and not a traditional lender. Applications for these loans are faster, with competitive rates and flexible lending criteria.
- New Enterprise Incentive Scheme (NEIS). This is a government-funded program for applicants who receive payments from Centrelink. It provides training and income assistance for Centrelink recipients who wish to start and work full-time in their own business.
Which lenders offer business loans for Centrelink recipients?
You can apply for a business loan from non-bank and peer-to-peer lenders. The following non-bank lenders offer business loans even if you don't have an established business. These lenders will consider your application based on the strength of your ideas, experience and personal drive. They provide financing even if you receive Centrelink payments. There are also options if you already have an established business.
You can also apply for a loan with the following peer-to-peer lenders. If you have a rocky financial history or former unsuccessful businesses, you may find it difficult to convince potential investors.
What fees and charges should I expect?
There are two main costs that come with a business loan:
- Interest rates. This is set as a percentage. It shows how much you will have to repay for the amount you've borrowed. For instance, if you borrow $100 at a 20% interest rate, you'll have to pay back $120.
- Fees. The fee structure of your loan will depend on your lender. There could be fees for establishing your account, ongoing monthly fees, exit fees if you pay off your loan early and early or late repayment fees if you pay outside the schedule. These are some of the main fees to look out for, but there could be others. These fees add to the cost of your loan, so make sure to include them in your calculations. Leaders are required to make all fees clear and comprehensible.
What should I consider before applying for a business loan on Centrelink?
- Getting a loan will not be easy. Lenders and investors may be more hesitant to lend to someone on Centrelink. You will also need to be prepared to pay higher rates. You may be able to convince them if you have an outstanding business idea or if you can demonstrate the profitability of your new business.
- Plan for how you'll spend the money in as much detail as possible. The lender will want to know how the money is being spent and if it's being spent wisely. They will also want to know if they can expect a return on their investment.
- Set up a calendar around your repayment schedule and work according to it. Keeping up with repayments will help you keep costs down. Missing repayments will result in extra fees and can harm your credit rating.
- Money may be tighter after you've taken out a business loan. All proceeds of the loan will have to be used for business purposes only. Having to make repayments can make finances tight unless you're sure your business can turn a profit.
What can I use a Centrelink business loan for?
There are several uses for a business loan, including the following:
- Starting your own business
- Growing your existing business
- Boosting your cash flow
- Buying inventory, commercial property, vehicles, machinery, equipment and tools
- Exporting goods overseas
- Conducting research and development
Does Centrelink give business loans?
Technically, no. Centrelink doesn't give business loans. But some Centrelink recipients can apply for NEIS assistance. NEIS is managed by Centrelink and the Department of Human Services. It is not a business loan, but it can help you get self-employed and start your own business.
What is the New Enterprise Incentive Scheme (NEIS)?
NEIS is a government-funded program. It is designed to help Centrelink recipients start their own businesses.
If you're on Centrelink, NEIS can help you start and work full-time for your own business. It counts as Centrelink-approved activity for up to 13 weeks from commencement.
The business is required to be upstanding, lawful and preferably not-for-profit. There are 6,300 places available each year.
What support can you receive on the NEIS?
- Accredited small business training
- Business mentoring and support for up to 52 weeks
- NEIS allowance for up to 39 weeks
- NEIS Rental Assistance for up to 26 weeks
Am I eligible for the NEIS program?
If you're interested in NEIS, a good first step is to register for jobactive if you haven't already. You'll have to be registered if you want to get into the program. You can learn more about it here.
The selection criteria for the NEIS are fairly strict. To qualify for the application alone, you must meet the following criteria:
- Be 18 years of age or older and on an eligible Centrelink scheme. You must be 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 3 years or have ever received it for a similar business activity.
Additionally, your business must meet the following criteria:
- 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.
How can I apply for a Centrelink business loan?
Whether you're eligible for a business loan will depend on the provider. For many business loans, your business needs to be established for a certain amount of time. There are also requirements around monthly or annual turnover. Your chances of getting a business loan increase in the following situations:
- 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.
To apply for a business loan, you will need to do the following:
💵 Work out how much you need to borrow and what you can afford.
🔎 Look for lenders. Check their eligibility criteria to ensure you can apply.
🖨️ Organise and prepare the required documentation. This can include the following:
- Proof of identification, such as a driver's licence or passport
- Your business's ABN/ACN
- Your personal and/or business financials
- Your business plan
- Financial forecasts
How long lenders take to respond will vary between lenders and their processing times. Some lenders may allow you to repay your loan early without penalties.
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Ask a question
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 guides:
Aside from that, you can also check the list of bad credit business loans that could help you get your needed funding for your small business.
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 a personal loan, you may get in touch with a lender who accommodates Centrelink recipients.
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, check out the loans for people on Centrelink payment featured on our website.
Please make sure that you have read the relevant T&Cs or PDS of the loan products before making a decision. Moreover, check the eligibility requirements as well and consider whether the product is right for you.
Cheers,
Anndy