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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.

Must read: Looking for the best business loan?

There’s no single loan that’s best for everyone as all our needs are different - and what’s best for you might not be best for someone else. Keep in mind that we don’t compare every product in the market, but we hope that our tools and information will allow you to compare your options and find the best loan for you.

Valiance Finance Logo

Get access to a wide range of business finance options with Valiant Finance. Fill out this form to speak to an expert.

Valiant Finance works with a large panel of lenders that can help you find a loan for your business.

  • Access to 60+ lenders
  • Dedicated credit specialists
  • Various loan options available

Valiance Finance Lender Logos

Compare business loans now

  • 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.

    State governments have also revealed their own grants schemes, tax relief, and interest-free business loans designed to provide cashflow assistance to SMEs.

Data indicated here is updated regularly
Name Product Min. Loan Amount Max. Loan Amount Loan Term Upfront Fee Filter Values
Valiant Finance Business Loan Broker
$5,000
$1,000,000
3 months to 5 years
$0 application fee
A Business Lending Specialist from Valiant Finance can give you access to competitive business loans from over 70 lenders. Loans between $5,000 and $1 million are available. Request a call – your loan can be funded in 1 business day.
Prospa Business Loan
$5,000
$300,000
3 months to 3 years
3% origination fee
Small business loans are available from $5,000 - $300,000 on terms of up to 3 years. At least six months trading history and a monthly turnover from $6,000 is necessary.
Max Funding Unsecured Business Loan
$2,000
$300,000
1 month to 1 year
$0 application fee
An unsecured business loan from $2,000 that offers convenient pre-approval and no early repayment fees.
OnDeck Business Loans
$10,000
$250,000
6 months to 2 years
3% of loan amount
Apply for up to $250,000 and receive your approved funds in one business day. Minimum annual turnover of $100,000 and 1 year of trading history required.
ANZ Unsecured Business Loan
$10,000
$1,000,000
Up to 15 years
$600
Apply for a loan from $10,000 with no security required and benefit from flexible repayment terms.
Westpac Business Loan
$5,000
$1,000,000
1 to 30 years
$0 application fee
Purchase a new vehicle, equipment or support your cash flow with a business finance solution from Westpac.
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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:

Compare invoice financing products

Data indicated here is updated regularly
Name Product Min. Loan Amount Max. Loan Amount Loan Term Upfront Fee Filter Values
Timelio Invoice Finance
$10,000
$100,000,000
Up to 4 months
$0
Get up to 100% of the value of your invoices without having to wait for customer payments, and with no minimum turnover or operating history required.
ScotPac Invoice Finance
$10,000
$150,000,000
From 1 year
No set amount
Improve your business cash flow by financing your outstanding invoices. No minimum trading history required, but minimum 12 - month term and $10,000 in invoices.
ScotPac Selective Invoice Finance
$10,000
$1,000,000
1 to 3 months
$500
Finance your unpaid invoices on demand with terms of 1 - 3 months. 95% of invoice is paid upfront, with no minimum trading history required.
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If your business doesn't fit any of the situations outlined above, you may want to consider a regular business loan


Am I eligible for a business loan?

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.

Valiance Finance Logo

Get access to a wide range of business finance options with Valiant Finance. Fill out this form to speak to an expert.

Valiant Finance works with a large panel of lenders that can help you find a loan for your business.

  • Access to 60+ lenders
  • Dedicated credit specialists
  • Various loan options available

Valiance Finance Lender Logos

Compare business loan rates below

Data indicated here is updated regularly
Name Product Starting Interest Rate (p.a.) Starting comparison Rate (p.a) Max. Loan Amount Loan Term Upfront Fee
Valiant Finance Business Loan Broker
From 9.9 %
12%
$1,000,000
3 months to 5 years
$0 application fee
You will receive a comparison rate between 12% p.a. and 52.14% p.a. based on your lenders risk assessment
A Small Business Lending Specialist from Valiant Finance can give you access to competitive business loans from over 60 lenders. Loans between $5,000 and $1 million are available. Request a call – your loan can be funded in 1 business day.
Prospa Business Loan
From 14.95 %
0%
$300,000
3 months to 3 years
3% origination fee
You will receive a comparison rate of between 0% p.a. and p.a. based on your risk profile
Eligible businesses can qualify for a loan of up to $100,000 or up to $300,000 with asset security. Eligibility for loans over $150,000 will be determined based on a variety of factors regarding your business.
Max Funding Unsecured Business Loan
From 24 %
24%
$300,000
1 month to 1 year
$0 application fee
You will receive a comparison rate between 24% p.a. and 40% p.a. based on your risk profile
An unsecured business loan from $2,000 that offers convenient pre-approval and no early repayment fees.
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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.

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