Funding for app and tech businesses

Where do loans fit in tech funding?

Tech businesses have more funding options than most: angel investors, venture capital, accelerators, government grants, crowdfunding, customer pre-sales and business loans. business.gov.au’s overview of funding sets out both the debt and the equity routes and the trade-offs between them.

Business loans occupy a specific place in that mix. They don’t suit every stage, but where they do fit, they let founders grow without giving up ownership. The key question is simple: is there revenue in the bank that can service repayments?

Which stage are you at?

Stage	What’s realistic	Notes
Idea / prototype, no revenue	Equity, grants, founder property-secured loan	Unsecured lending is rarely realistic
Launched, early revenue	Small unsecured amounts, equipment finance, property-secured	A few months of clean deposits help
Steady revenue, growing	Unsecured loans, lines of credit	Debt can fund growth without dilution
Established, profitable	Larger unsecured or secured facilities	Acquisitions and expansion become options

If you’re at the first stage, a founder with home equity may be able to use a property-secured business loan — from $20,000 to $5,000,000 — for genuine business purposes. That’s a serious decision, because the home is the security. A specialist will explain the implications clearly; see secured business loans online.

How do lenders read app and platform revenue?

The same way they read any business income: from your bank account. App store payouts, payment processor settlements, licence fees from customers, and service income from implementation or support all appear as deposits. Lenders look at:

• how regular payouts are and how they’ve trended;
• whether revenue depends on one platform or one customer;
• refunds, chargebacks and failed payments;
• the costs that sit against that revenue — hosting, contractors, salaries;
• existing debt, convertible notes or investor loans.

If you run a subscription model, our page on SaaS business loans goes into recurring revenue in more detail.

When you’re ready to talk it through, start an online enquiry — no credit check is involved.

Can you finance the hardware separately?

Yes, and it’s often wise. Workstations, servers, test devices, networking equipment and studio gear can be funded with equipment finance, which uses the hardware as part of the security. That keeps your cash and any general facility free for salaries and growth.

The ATO’s instant asset write-off allows eligible small businesses — aggregated turnover under $10 million — to deduct the business portion of assets costing less than $20,000 each in 2025–26 in the year they’re first used or installed. Ask your accountant how this applies to your purchases; it affects tax timing, not the cost of the equipment.

What will an online application ask a tech business?

• Monthly revenue and how it’s earned;
• how long the business has been generating revenue;
• headcount and monthly burn;
• any investors, convertible notes or existing loans;
• what the funds are for and how they produce more revenue;
• whether any founder owns property, if relevant.

Bank data is shared through a secure statement link, identities are verified online, and documents are e-signed. Founders can complete their parts from wherever they are.

Illustrative example: an app with steady in-app revenue

Illustrative only. A small studio built a language-learning app that has earned steady in-app subscription revenue for two years. Payouts from app stores land monthly. The founders want to fund localisation into three new languages, which needs contract translators and a marketing push.

They enquire online, link their business account and share a revenue summary by platform. Their specialist suggests a modest term loan sized to the localisation budget, with repayments covered by existing revenue. They e-sign the documents on their laptops.

When should you choose equity instead?

• When the product is pre-revenue and the outcome is genuinely uncertain;
• when you need investors’ expertise and networks as much as their money;
• when the amount needed far exceeds what current revenue can service;
• when growth will take years to turn into cash.

Debt and equity aren’t enemies. Many tech businesses use both: equity for big, risky bets and debt for predictable, revenue-backed growth.

How should a tech founder prepare before applying?

• Separate the money. All revenue into a business account, all business costs out of it. Founder loans and investor money should be clearly labelled.
• Build a monthly snapshot. Revenue by source, total costs, cash at bank and months of runway.
• List every obligation. Existing loans, convertible notes, investor agreements and any amounts owed to founders.
• Keep tax current. Lodge BAS on time and keep PAYG withholding and super up to date for any staff.
• Know your purpose in numbers. “Two developers for six months at this cost, to ship this feature that existing customers have asked for” is far stronger than “growth”.

A tech business that can show this in a page or two is far easier to lend to than one with a brilliant product and no clear numbers.

Questions founders often ask us

• Will investors mind if we borrow? Check your shareholder agreement; some require investor approval for debt.
• Can a loan bridge to a funding round? Possibly, if the round is well advanced, but lenders will want a fallback if it’s delayed.
• Do we need audited accounts? Not usually for small business lending; bank data and management accounts are typically enough.

Find out where debt fits your roadmap

If your app or tech product is earning, a business loan might fund the next milestone without giving away a slice of the company. The online enquiry takes about a minute, involves no credit check and goes to one team who’ll give you an honest view — your details aren’t thrown out to a pack of lenders.

Please be accurate about your revenue, burn and stage on the form. That’s what lets us tell you clearly whether debt makes sense right now. Ask what’s realistic for your tech business.