Key Takeaways
- Unsecured loans are rarely suitable for NDIS startups due to high interest rates, short terms, and strict eligibility requirements.
- Secured business loans offer better terms and are typically the most practical funding option for new NDIS providers.
- Equipment finance allows you to acquire essential tools and vehicles without tying up working capital, using the equipment itself as security.
- Secured overdrafts provide flexible access to funds, helping manage cash flow gaps during early operations.
- Invoice finance is usually difficult to obtain for NDIS providers, but is being offered by a handful of lenders with the help of lending experts like Dark Horse Financial.
- Lenders prioritise asset security, revenue projections, the director’s credit history, and financials when assessing NDIS startup loan applications.
- Startup loan approval times vary from a few days to a couple of weeks, depending on the loan type and documentation required.
Starting a business in the National Disability Insurance Scheme (NDIS) space offers a meaningful opportunity to make a difference in people’s lives while building a sustainable and rewarding venture. However, like any startup, launching an NDIS provider business comes with financial challenges, particularly when it comes to sourcing funding.
In this guide, we’ll explore how new NDIS businesses can access funding, why unsecured loans are often unsuitable, and what secured alternatives are available to get your startup off the ground.
Are Unsecured Loans Available to NDIS Startups?
Unsecured business loans are generally not available to new businesses, including NDIS providers, until they have been trading for at least 3 months. Even then, the few lenders that offer unsecured options usually only offer high-interest products with very short repayment periods.
Generally, most new NDIS providers will not qualify for unsecured startup loans for new disability services with favourable terms until they have demonstrated 12–24 months of trading history.
New NDIS providers are generally better off considering secured funding options. These offer better rates, longer terms, and larger funding amounts, which can be key to covering setup expenses, staff wages, equipment, and more.
What Startup Funding Options Exist for NDIS Businesses?
Let’s break down the most realistic and beneficial startup loans for new NDIS providers.
1. Secured Business Loans
One of the most common healthcare startup loans is a secured loan. Secured business loans use an asset (typically property or equipment) as security. This lowers the lender’s risk and allows them to offer more favourable terms, such as larger loan amounts, lower interest rates, and longer repayment terms. If you have residential or commercial property with equity built up, you could use this to back your business loan. This is often the most accessible and flexible option for NDIS startups.
2. Equipment Finance
Providing disability services often requires specialised vehicles, mobility aids, or clinical equipment. Equipment finance lets you purchase these essentials without needing a large upfront investment. The equipment itself acts as the security. With equipment finance, NDIS startups can preserve cash flow for other expenses. The interest is also tax-deductible, and it’s possible to claim depreciation.
3. Secured Overdrafts
A secured overdraft works like a safety net for your cash flow. Once in place, it provides quick access to funds, useful for paying wages, covering unexpected expenses, or bridging cash flow gaps. Overdrafts are connected to your account, allowing you to access more cash than what you have, up to an approved limit. You only pay interest on the borrowed amount, and the limit resets whenever you repay what you owe. Secured overdrafts are linked to an asset, like property, to reduce risk and improve terms.
4. Invoice Finance
Invoice finance is a way of turning unpaid invoices into immediate working capital. It’s especially helpful for businesses that invoice on completion of service but wait weeks for payment. However, invoice finance is not widely available to NDIS providers. That said, it is possible to access invoice finance as an NDIS provider with the help of finance experts like Dark Horse Financial. We have access to lenders that understand the unique cash flow needs of NDIS businesses and are willing to work within this niche.
What Do New NDIS Providers Need to Qualify for Loans?
Here are the common eligibility criteria for NDIS startup loans:
1. Revenue Projections
Lenders want to see realistic revenue projections to see your potential profitability as a business. Even if you don’t have enough trading history yet, it’s important to demonstrate you can make repayments.
2. Asset Security
If you’re applying for a secured loan, you’ll need to show what asset you’re offering as collateral. This could be:
- Real estate (your home or investment property)
- Business equipment (e.g., vehicles)
- Outstanding invoices (if you’re already trading and dealing with clients)
3. Director’s Credit History
Even though your business is new, almost all lenders will assess your credit score. A clean credit file, good repayment history, and low personal debt levels all work in your favour. It’s important to note that not all lenders will require a high credit score to approve a loan.
How to Obtain Startup Funding as an NDIS Provider
How can new NDIS providers access startup loans? Here’s a step-by-step overview:
Step 1: Apply Quickly Online
Fill out our online form and apply for disability startup finance. We specialise in helping new providers secure funding through our network of lenders who understand the sector. We can help you with accessing specialist lenders, securing the best rates, and customising terms to fit your business.
Step 2: Get Approved
Once you’ve found the right loan product and prepared your documentation, we’ll help you submit the application and work to get it approved as quickly as possible. Once your loan is approved, sign the agreement and wait for the funds to be disbursed.
How Quickly Can New NDIS Businesses Get Approved for Startup Loans?
For funding solutions for first-time NDIS business owners, loan approval times vary depending on the type of funding and the complexity of your application. In general, startup loans can be approved within a few days to a few weeks. At Dark Horse Financial, we focus on streamlining the process, working closely with both you and the lender to minimise delays and increase your chances of success.
Final Thoughts
Startup loans for new NDIS providers are available, but you need to know where to look and which options are most suitable for your business. Unsecured loans rarely offer the support that disability service businesses need at the beginning of their journey.
Instead, explore secured business loans as more realistic, affordable, and scalable solutions. If you’re ready to take the next step in launching your NDIS business, we’re here to help you find the right funding and get started with confidence.
Disclaimer: Loans and the benefits of loan products are to approved applicants only. Information on this page is general in nature, it does not take into account your personal situation. This information is not intended to replace professional advice and should not be relied upon for any reason. You should always seek professional advice for finance, tax and accounting matters before making a decision or taking any action.
