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.
Prospa Business Loan
Prospa Business Loan
Loans up to $300,000
Same-day turnaround
Repay early without penalty
100% confidential application
Prospa Business Loan
Get access to a small business loan from $5,000 - $300,000.
Loan Security: No asset security required to access funds up to $100,000
Alternative finance options for small businesses during the COVID-19 outbreak
If your business has been affected by COVID-19 there are a number of options available to help you financially:
The banks are offering various relief measures to help small businesses during this time of uncertainty. This includes measures such as payment deferrals, fee and interest waivers and discounted rates on business loans.
The government is employing various tax relief measures including: refunds, deferrals, and waivers to help businesses retain staff and purchase new equipment during this time.
We update our data regularly, but information can change between updates. Confirm details with the provider you're interested in before making a decision.
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
We update our data regularly, but information can change between updates. Confirm details with the provider you're interested in before making a decision.
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.
How do I apply for a business loan?
By now, you probably have a good idea of what type of business loan could be the "best" business loan for your circumstances and can compare loans using the table above.
Once you have found a business loan that suits your needs, check through the eligibility criteria for that particular lender and loan product to make sure you qualify.
When you're ready to apply, click the "Go to site" button to begin the loan application process.
Prospa Business Loan
Prospa Business Loan
From
9.9 %p.a.
interest rate
From
11.75 %p.a.
comparison rate
Loans up to $300,000
Same-day turnaround
Repay early without penalty
100% confidential application
Prospa Business Loan
Get access to a small business loan from $5,000 - $300,000.
Loan Security: No asset security required to access funds up to $100,000
We update our data regularly, but information can change between updates. Confirm details with the provider you're interested in before making a decision.
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.
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.
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