An unsecured business loan is an attractive funding option for small businesses. It allows you to borrow funds you need for your business, typically up to amounts of $250,000 (although some lenders will go up to $400,000) without having to use a property as collateral for the loan.
That means that as a small business owner, you can access unsecured loans through an online lender for working capital, purchase of business assets or any worthwhile business purpose. Often funds can be made available the next business day. Business owners are finding that always relying on their main financial institution for finance, isn’t always a good option. It can pay to access alternative finance options that match your business need.
The loans are provided by innovative finance companies (called Fintechs) that offer a streamlined online application process. This means you can get access to funds in days not weeks. These lenders use cutting edge technology to simplify the application process, meaning no cumbersome paperwork. Often there is no paperwork at all to sign. Complete the few steps online, link your bank account and accounting package, then click submit for assessment to begin. Using their software the online lenders are able to quickly analyse your annual revenue real-time cash flow, using your bank statements and accounting data to make a quick decision on your application. Often a decision is provided within 24 hours.
Small businesses are more likely to be approved by Fintechs as they rely on real-time data, not what you did two years ago. Fintech’s have a unique approach to lending to understand the creditworthiness of the business.
1 in 3 SME businesses in Australia are currently seeking funding $50,000 – $250,000 for their business
59% are seeking funding for capital and growth
2 out of 3 businesses don’t have the time to run their business the way they would like
46% of Australians are worried that declining property prices are affecting their ability to borrow
43% of customers are paying late
Why an Unsecured Business Loan might be what your business needs
Cash flow strains in your business are keeping you up at night
Your customers are paying late
You are turning away new business
You don’t want to put up your property as security for your business loan
You don’t have time to jump through the bank’s hoops
You need a loan to clear tax debt
Join the wave of small and medium business owners that are turning to alternative business lenders to provide the unsecured business loans they need to grow and sustain their business.
Possibly the easiest way to get finance for your Small Business
Business loans from $5,000 – $250,000
Fast application and decision
Loans are Unsecured
No hidden fees or early repayment penalties
Funding possible in 24 hours*
*Standard credit approval criteria and terms and conditions apply.
How Does It Work
There are two main types of Unsecured Business Loan facilities:
Business Term Loan
Business Line of Credit
Unsecured Business Term Loan
An Unsecured Business Term Loan is a loan of $10,000 to $400,000 with a term of 1 to 36 months.
There is a drawdown fee charged when you first access the loan amount. This is calculated as a percentage of the funds used and will be disclosed at the time of approval.
You then are charged interest on the funds you use, for the time until you pay them back.
Repayments are made daily or weekly as a direct debit from your business account. The amount of the payment is disclosed at the time of approval and includes the interest charged and the principal borrowed.
Business Line of Credit
A Line of Credit is traditionally a more flexible facility in that the Line of Credit amount is an approved limit that you can draw up to. You can draw down the amount that suits your business and have continuous access provided you stay under your approved limit.
There are some variations to the specific terms of a Line of Credit facility depending on the lender, so it is essential to understand how you can access the funds, and if you can have access to the limit ongoing of over a set period. Some Line Of Credit facilities still required regular weekly payments to be made.