UNSECURED BUSINESS LOANS
We offer not just loans, but solutions!
Application outcomes within 2 hours
Loans from $10,000 – $500,000
Repayment periods of 3 – 36 months
No hidden fees or charges
No collateral for loans up to $400,000
Funds received within the same business day
No early repayment fees
Australia’s unsecured business loans are an important source of funding, especially for small businesses. We all know how tough it’s been for most businesses in Australia since COVID-19 hit in 2020. Business finance is more important than ever before, with some insolvency experts tipping that tens of thousands of Aussie businesses could collapse with the end of Job Keeper. We will cover everything you need to know about unsecured business loans.
What is an unsecured business loan?
An unsecured business loan is a short-term finance option that does not require you to put your assets up as security.
Unsecured business loans are the opposite of secured loans, which do require you to put up assets as security. In finance terms, security assets are known as ‘collateral’.
What are the advantages of an unsecured business loan?
An unsecured loan is:
Less risk for you and your business
Due to the fact that your lender will not be able to repossess your property, you will never have to worry about repossession. In contrast, if you default on a secured business loan, your collateral assets can be repossessed by the lender and sold. Assets such as business vehicles, equipment, and real estate could be included. Due to cash flow problems, you might not have a business if you lose those assets.
Quicker to get approved
Securing business loans usually involves more time-consuming application processes, including independent appraisals of your assets. With an unsecured loan, this step can be skipped.
Allows you to exploit short-term business opportunities without tying up your assets
Paying off an unsecured loan and proving your financial responsibility will make it easier for you to obtain additional business financing.
Getting a startup business loan in Australia is notoriously difficult. As a start-up business, you probably won’t qualify for a secured loan. An unsecured startup business loan is often the only option available to budding entrepreneurs..
Which banks offer unsecured business loans?
It is difficult to obtain an unsecured loan in Australia due to banks’ risk aversion. They would much prefer you to get a secured loan so that there’s a risk for your business, but not to them.
It is difficult to get unsecured business loans at first, even if you find a bank that offers them.
1) Their lending criteria are very tough, especially post COVID-19.
Even after COVID-19, banks will be wary of lending to unsecured businesses. They won’t relax their lending criteria because their number one priority is their shareholders, not their business loan customers. Unsecured business loans post-COVID and post the Banking Royal Commission will be just as hard to get, especially small business loans.
It is evident from the very low take-up rate of the federal government’s $40 billion SME Guarantee Scheme. The main purpose of the Scheme was to increase bank approvals for unsecured loans. However, only $1.5 billion out of the $40 billion in funds on offer was approved by Australian banks within the first six months of the Scheme. Banks’ strict lending criteria result in fewer than 5% of all funding approved.
2) Their application process is time-consuming.
An unsecured business loan application can take up to two months to be assessed by some banks. In the fast-paced and global business world we live in today, that’s simply not good enough.
When you apply for a loan, banks require detailed financial statements, reports, and business plans. You may be put off by the process itself. We value your time and will act right away.
Getting an unsecured business loan with guaranteed approval
Banks do not offer unsecured business finance, so private lenders offer this alternative. The private lending market is growing rapidly. Unsecured business loans are also more likely to be approved quickly by private lenders.
We arrange private loans for our business clients around Australia.
Unsecured business loans are available to sole traders and small-to-medium-sized businesses. Our loans are legal contracts between our clients and our private lenders. All loan documentation is provided upfront so there are no surprises.
How much can I borrow?
This depends on your business and how much you can afford to repay. The more you can afford to pay, the more you can borrow (and vice versa). If you can provide us with your business financials, we can help you work that out.
We can also take into account your business cash flow with flexible loan repayments. We understand what it’s like to be in business, and we’re just as keen for you to succeed as you are. Our private lenders are too.
How do you qualify?
It’s important to have a few fundamentals in place before you apply for unsecured business finance with us.
- The corporate Entity Should be activated
- Your business should be registered for GST.
- Running a business for at least six months or more and you can show sales revenue.
Of course, if you have a good credit history, feel free to let us know as it may open up more private lenders to you. You can check both your business and personal credit score for free in Australia with credit reporting agencies like Equifax. Making an enquiry about your credit score doesn’t negatively affect it in any way.
How long does it take to approve?
You can apply for unsecured business finance with us online. We can usually assess your application within a day. When we match you with one of your private lenders, you can usually have your unsecured finance within 24 hours. We understand that ‘time is money in business and that opportunities don’t wait.
What is the interest rate for an unsecured business loan?
Interest rates on private loans depend on your individual financial circumstances. Interest rates on unsecured business loans are higher than on secured loans. However, it’s important to do a cost-benefit analysis. The alternative to not getting your finance approved could be the loss of your business or a missed opportunity.
Paying a higher interest rate to get quick access to the finance you need could be the difference between surviving or not. It could also help your business to thrive if you can capitalize on an opportunity before your competitors do.
Need an unsecured business loan?
We strongly believe that finance should not be that complicated.