When you're looking for a business loan, it makes sense to keep looking until you find the "best" loan for you. But what makes a business loan the best?
Find out what to look for and compare business loans below.
*The products compared on this page are chosen from a range of offers available to us and are not representative of all the products available in the market. There is no perfect order or perfect ranking system for the products we list on our Site, so we provide you with the functionality to self-select, re-order and compare products. The initial display order is influenced by a range of factors including conversion rates, product costs and commercial arrangements, so please don't interpret the listing order as an endorsement or recommendation from us. We're happy to provide you with the tools you need to make better decisions, but we'd like you to make your own decisions and compare and assess products based on your own preferences, circumstances and needs.
Capify Unsecured Business Loan Offer
Capify Unsecured Business Loan Offer
Borrow up to $300,000
Fast application and turnaround
Flexible loan repayments
100% confidential application
Capify Unsecured Business Loan Offer
Apply for up to $300,000 from Capify, enjoy a simple application process and with same-day approval you can have your funds within 24 hours.
The interest rates offered by each provider are indicative interest rates that have been supplied by each provider. These rates change often. Please ensure you confirm the actual interest rate with the relevant provider prior to applying for any loan.
What makes a business loan the best?
There is no single factor that determines what is the best loan for your business, but there are a number of things you need to keep in mind when considering a business loan. With the number of finance options currently available to businesses, it pays to have a clear understanding of both your business's current situation and financial needs before you apply for a loan.
The business loan that is best for a start-up with no trading history will be different to the one that is best for an established business, and so you will need to consider the following when working out what business loan may be the best for your business.
Why you need the loan. This will help you decide what specific type of business loan to apply for. Some loans are designed for equipment, whereas others may be used to cover cash flow issues. It's important to have a clear understanding of the purpose of the loan to help narrow down your options.
How much you need to borrow. Different business finance options will be more or less suitable for certain loan amounts.
The size and age of your business. Many lenders have strict criteria that your business will need to meet to be eligible for a loan. This may include a minimum trading history or turnover, and will affect which loans you will be able to apply for.
What type of business loans are best for my business situation?
See what the best business loan options are for businesses in the following positions:
My business has cash flow issues and needs ongoing, flexible access to funding
Most business lenders will have certain criteria that you will need to meet in order to be eligible. Consider the following to determine whether you're likely to be approved for a business loan:
ABN/ACN. You will need to hold an Australian Business Number (ABN) or Australian Company Number (ACN) to be eligible for a business loan in Australia.
The age of the business. The majority of lenders, especially the big banks and other large lenders, require businesses to have been in operation for at least one year before being eligible for a business loan. Some alternative and smaller lenders may offer unsecured loans for start-ups and businesses that have been operating for less than a year.
Credit history. For established businesses, the credit history of the business will become a major deciding factor in the business's eligibility for a loan. In some instances – particularly where businesses do not have a strong or long enough trading history – the personal credit records of directors and major shareholders will also be considered.
Turnover. Lenders offering business loans need to satisfy themselves that the business will easily be able to afford the loan repayments. Lenders look at a business's turnover to gauge the profitability of the business and their cash flow situation. This requirement will vary for some loan types, such as a merchant cash advance, which will look at the average credit card transactions of a business.
Tom Stelzer is a writer for Finder specialising in personal finance, including personal loans and car loans, as well as small business and business loans. He has previously worked as a freelance writer covering entertainment, culture and football. He has a Master of Media Arts and Production and Bachelor of Communications in Journalism from the University of Technology Sydney.
How likely would you be to recommend finder to a friend or colleague?
Very UnlikelyExtremely Likely
Thank you for your feedback.
Our goal is to create the best possible product, and your thoughts, ideas and suggestions play a major role in helping us identify opportunities to improve.
Important information about this website
finder.com.au is one of Australia's leading comparison websites. We compare from a wide set of major banks, insurers and product issuers.
finder.com.au has access to track details from the product issuers listed on our sites. Although we provide information on the products offered by a wide range of issuers, we don't cover every available product. You should consider whether the products featured on our site are appropriate for your needs and seek independent advice if you have any questions.
Products marked as 'Promoted' or "Advertisement" are prominently displayed either as a result of a commercial advertising arrangement or to highlight a particular product, provider or feature. Finder may receive remuneration from the Provider if you click on the related link, purchase or enquire about the product. Finder's decision to show a 'promoted' product is neither a recommendation that the product is appropriate for you nor an indication that the product is the best in its category. We encourage you to use the tools and information we provide to compare your options and find the best option for you.
The identification of a group of products, as 'Top' or 'Best' is a reflection of user preferences based on current website data. On a regular basis, analytics drive the creation of a list of popular products. Where these products are grouped, they appear in no particular order.
Where our site links to particular products or displays 'Go to site' buttons, we may receive a commission, referral fee or payment.
We try to take an open and transparent approach and provide a broad based comparison service. However, you should be aware that while we are an independently owned service, our comparison service does not include all providers or all products available in the market.
Some product issuers may provide products or offer services through multiple brands, associated companies or different labelling arrangements. This can make it difficult for consumers to compare alternatives or identify the companies behind the products. However, we aim to provide information to enable consumers to understand these issues.
Providing or obtaining an estimated insurance quote through us does not guarantee you can get the insurance. Acceptance by insurance companies is based on things like occupation, health and lifestyle. By providing you with the ability to apply for a credit card or loan we are not guaranteeing that your application will be approved. Your application for credit products is subject to the Provider's terms and conditions as well as their application and lending criteria.