5.0 rating
Borrow from $2,000 – $2,000,000
Loan terms from 3 months to 5 years
Weekly, fortnightly or monthly repayments
Fixed interest rates from 7.99%
Interest rate matched to your situation
Can be used for any reasonable business purpose
It takes only three minutes to enter your details so we can match you with our panel of lenders. No lengthy questions.
Our Lender Match technology matches you with quotes from multiple lenders, so you can pick the best product for your circumstances.
Once you’ve chosen your preferred quote, we’ll let you know what documents are required to complete your application.
Get approved and receive funds within 24 hours.
Business loans are a form of credit provided by financial institutions such as banks or private lenders to fund various business-related expenses. The funding could be necessary for buying machinery, expanding operations, funding new projects, or simply improving cash flow. These loans are a critical financing tool for businesses of all sizes and types, including startups, SMEs, and large corporations. They come in various forms, including term loans, line of credit, invoice financing, and equipment loans. The terms and conditions, including interest rates, vary depending on the lender and the borrower's creditworthiness.
This guide is broken down into the following sections. Click a link if you want to skip ahead.
There are several types of loans in Australia that can benefit businesses in almost any situation, whether it is for growth, overheads, debt consolidation or working capital. Each of these loan types has its unique features, advantages, and potential disadvantages. Here are the most common types of business loans:
A business loan secured against assets with a fixed interest rate and predetermined repayment schedule. Provides certainty and competitive rates for business growth and expansion.
Established businesses with valuable assets seeking predictable repayments for expansion, equipment purchases, or working capital needs.
A business loan with fixed interest rate and repayment terms that doesn't require asset security. Based on business creditworthiness and cash flow capacity.
Businesses with strong credit history and cash flow that need quick funding without putting assets at risk, ideal for working capital or short-term expansion.
A flexible credit facility that allows your business to withdraw more money than available in your account, up to an agreed limit. Perfect for managing cash flow fluctuations.
Businesses with fluctuating cash flow, seasonal operations, or those needing flexible access to working capital for day-to-day operations.
A secured loan where you own the asset from day one while the lender holds a mortgage over it as security. Perfect for business equipment, vehicles, and machinery purchases.
Established businesses looking to purchase equipment, vehicles, or machinery with immediate ownership and maximum tax benefits.
Financing for purchasing, refinancing, or developing commercial real estate. Secured against the property with competitive rates and flexible terms for business property investments.
Businesses looking to purchase premises, investors seeking commercial property opportunities, or companies wanting to refinance existing commercial property debt.
A financing arrangement where you hire the asset with an obligation to purchase it at the end of the term. Combines the benefits of gradual ownership with manageable monthly payments.
Businesses that want eventual ownership of assets but need to spread the cost over time, particularly suitable for essential equipment with long useful life.
A lease agreement where you use the asset throughout the lease term with the option to purchase it at the end. Ideal for businesses wanting to preserve cash flow while accessing essential equipment.
Growing businesses that need equipment access without large capital outlay, or companies wanting to preserve cash flow for operations.
A rental agreement for business equipment where you use the asset for a set period without ownership obligations. Perfect for equipment that becomes obsolete quickly or seasonal business needs.
Businesses needing short-term equipment access, companies in rapidly evolving industries, or those wanting predictable operating expenses without ownership risks.
Unsecured business loans are highly flexible and can be used for a wide range of business purposes without requiring property or assets as collateral. Australian SMEs, sole traders, and startups often use these loans to purchase inventory, fund marketing campaigns, invest in new equipment or technology, hire additional staff, or cover day-to-day operational expenses. They are also commonly used to consolidate existing debts into one manageable repayment, or to bridge short-term cash flow gaps during seasonal fluctuations. Because no security is required, it’s important to plan how the funds will be allocated to ensure they drive growth, improve profitability, and strengthen your business.
Here are some of the most common reasons businesses in Australia take out unsecured finance:
Business funding can be used to provide the initial capital needed to start a new business.
Business funding can help cover the costs of inventory purchases, ensuring a business has products to sell.
Whether it's machinery, IT equipment, or other tools, a loan can fund necessary equipment purchases.
When a business is ready to expand, whether by opening a new location or increasing production, a loan can provide the necessary funds.
Cash flow funding can help cover day-to-day operational costs such as utilities, rent, or payroll during lean periods.
To reach new customers and increase sales, business funding can be used to fund marketing and advertising campaigns.
Business debt consolidation loans can be used to consolidate multiple business debts into a single, more manageable payment.
Business funding can fund the costs associated with hiring new staff, including recruitment and training.
Business funding can fund the research, development, and launch of new products.
Business funding can provide a safety net of funds for unforeseen business expenses.
Ben Saddaris, Saddaris Imports
Industry: Wholesale
Challenge: Cash flow shortage due to late payments from customers.
Solution: Using an unsecured business loan to bridge the financial gap.
Facing a cash squeeze due to delayed customer payments, Ben risked missing new orders and eroding client trust. He turned to an unsecured business loan for a swift solution, which required no asset security and was funded within 24 hours. This timely intervention ensured Ben could restock without interrupting order fulfillment. Once the late paying customers had caught up, Ben was able to repay the loan in full, keeping their operations seamless and their client relationships intact.
The amount you can borrow depends on several factors. These include the loan type, your credit history, the financial health of your business, and the lender's terms and conditions. Lenders consider your business revenue, profitability, cash flow, and credit history to determine how much you can responsibly borrow and repay. A business with a strong financial track record and a solid credit rating is likely to be approved for a larger loan compared to a business with a weak financial profile. The loan type also matters. For instance, equipment loans are usually for the exact amount of the equipment being financed, while a line of credit could be for any amount up to the maximum limit set by the lender. Some lenders offer smaller loans starting from a few thousand dollars, while others can lend several million. Before applying for a loan, assess your business needs and your capacity to repay to avoid overextending your financial obligations.
Balance over time
Lenders consider several factors when assessing your eligibility against their credit criteria, including your credit score, income, debt-to-income ratio, age, residency, and required documentation. While meeting the eligibility criteria doesn't guarantee loan approval, having a good credit score, stable income, and a positive financial profile significantly improve your chances.
You are eligible to apply if you are:
Operating for at least six months
Minimum monthly turnover of $5,000
Registered for GST
Business owner is an Australian citizen or a permanent resident
Business owner is over 18 years old
Apply online and get a quote instantly! We'll match your loan application with products from over 50+ Australian lenders.
Your quote will display all of the products you're eligible for, including repayment amounts, interest costs, fees or charges. You can then choose the product the best suits your needs and then we'll help you to complete the application process.
Once the full application is submitted, normal credit approval processes can take anywhere from a couple of hours up to 2 days depending on the amount of information required.
If you’re eligible, and you are happy with the initial quote, you will need to prepare documents such as:
Passport or drivers licence
Proof of income and expenses (e.g. payslips, bank statements)
Details of any current debts or other loans
Saving money on a business loan can have a significant impact on a company's financial health, providing more funds for growth and operations. One key factor to consider when trying to minimise costs is the loan term.
Typically, a shorter loan term means higher repayment instalments but less interest paid over the life of the loan. For businesses with consistent cash flow that can handle larger repayments, opting for a shorter term can lead to significant savings in interest costs.
Conversely, a longer loan term often results in smaller, more manageable repayment instalments, which might be preferable for businesses wanting to maintain liquidity. However, it's essential to note that, over time, the total interest accrued on a longer-term loan can be considerably higher.
Thus, while longer terms provide immediate relief in terms of cash flow, they might lead to higher overall costs in the long run.
Here's an example of how you could save $8,624 by picking a shorter term, on a $50,000 loan with a 7.99% interest rate:
Term | Repayment Amount | Total Amount to Repay |
---|---|---|
12 months | $4,349 | $52,190 |
24 months | $2,261 | $54,267 |
36 months | $1,566 | $56,397 |
48 months | $1,220 | $58,579 |
60 months | $1,013 | $60,814 |
With various loan options available, understanding their features is crucial to making an informed decision. Whether you're contemplating the type of security you'd need, the best interest rate structure, or the most suitable repayment schedule, you should carefully understand the nuances of each option to help you chart the best course for your business.
Here are some key considerations to keep in mind:
Secured loans require borrowers to pledge assets as collateral, ensuring lenders can recoup losses if defaults occur, often resulting in lower interest rates and better terms. On the other hand, unsecured loans are based solely on the borrower's creditworthiness, offering no collateral requirement but typically carrying higher interest rates, smaller loan amounts, and less flexible terms. Businesses should evaluate their financial situation and goals to choose between these options, ensuring alignment with their company's operational and financial direction.
Fixed term loans have set repayment durations, like 6 months or 5 years, where the entire loan plus interest is settled by the term's end. In contrast, revolving terms, commonly seen in business lines of credit or business overdraft, offer ongoing access to funds up to a defined limit, allowing businesses to draw beyond their account balance for short-term expenses. While fixed terms provide repayment certainty, revolving terms offer flexibility, letting businesses access funds as needed without seeking new loans, though careful monitoring is crucial to avoid exceeding the credit limit.
Unlike mortgages, loans for businesses are generally offered with a fixed rate. This means that throughout the term of the loan, the interest rate remains constant, providing businesses with predictability in their repayment schedule. On the other hand, a variable interest rate can fluctuate over time, typically tied to an index or a benchmark. While a variable rate loan might offer initial savings if market rates are low, it comes with the uncertainty of potential rate increases in the future. Before committing to either option, businesses should thoroughly review the product disclosure to understand the nuances of the rate structures and decide which aligns best with their financial strategy. If opting for a variable rate, it's essential to account for possible fluctuations during budget planning.
Understanding fees and charges associated with business finance is crucial to avoid unforeseen costs. While interest is a primary cost, lenders may charge application fees (typically $500 to $1,000), or more commonly, origination fees, which are for loan processing and range between 0% and 4% of the loan amount. Early termination fees can apply if a loan is settled ahead of its term, and may offset potential savings from early repayment. Additionally, lenders may charge direct debit fees per transaction ($2 to $4) and periodic fees for revolving term products, which could be fixed or percentage-based. If securing a loan, additional fees might apply. Thoroughly reviewing loan agreements is vital to understand the loan's true cost.
Lenders offer various repayment options to suit businesses' cash flow and operational needs, ranging from frequent daily or weekly schedules to less frequent fortnightly or monthly intervals. Many facilities feature fixed repayments, providing predictability in budgeting and ensuring businesses know the exact amount due at each interval. While this clarity aids in financial planning, it's crucial for borrowers to understand the total interest over the loan's term. Some may prioritise paying off loans quickly to minimise interest, while others might prefer longer terms for better cash flow management.
Verified Review
I want to take this moment to highlight the outstanding service I received from Jackson in organising for the purchasing of my car. Jackson have the know-how in dealing with any customers and made my car buying experience smooth and enjoyable. He was incredibly knowledgeable about the product and I confidently made my decision because he gives me all the information I needed. He was transparent throughout and made me comfortable and informed throughout the process. I would not hesitate to recommend Jackson and the company for a fast and easy loan approval that you don't get anywhere else. Thank you Jackson and I will recommend you to all my friends and families.
Usaia R.
Verified Review
Brad was fantastic, he goes above and beyond with his service and makes sure you get results. Amazing asset to this company, look forward to working closely in the future.
Zachary
Verified Review
Excellent service, they always answered all my questions very quickly, thanks for everything Eujin and Andy 10/10
Matias S.
Verified Review
I made an enquiry with emu money and within 30 minute's, I had Ryan call me. He got the ball going straight away, and made everything so easy and was always keeping me updated with texts. I can not recommend this guy enough! Thanks again Ryan!
Ruairi M.
Verified Review
Fantastic experience. Very seamless process, all done online and settlement was exactly when required. Highly recommend Adam. He was a pleasure to do business with on our first loan with Emu Money.
Vicki
Verified Review
Brad was great, honest, responsive and on the ball, thanks for your help :)
Chantelle F.
These helpful FAQs will help you find the answers you need. If you can't find what you're looking for, you can request a callback below.