download the finder app!App

Non-bank lender business loans

Some non-bank business lenders can let you borrow more than the big banks and have lower interest rates.

Avatar
Elizabeth Barry

&

Avatar
Bria Horne
Updated
Fact checked

We’re reader-supported and may be paid when you visit links to partner sites. We don’t compare all products in the market, but we’re working on it!

Swoop Finance Business Loan

Swoop Finance Business Loan

  • Access a range of partnered lenders
  • Quick online application
  • Good and bad credit options
Security Logo

100% confidential application

Swoop Finance Business Loan

Borrow up to $100,000,000 with terms from 1 to 30 years to fund businesses of all sizes.

  • Loan security: Secured
  • Upfront fee: Depending on your loan contract
  • Minimum loan amount: $1,000
  • Maximum loan amount: $100,000,000
  • Minimum loan term: 12 months
  • Maximum loan term: 2 years
Go to site
Promoted

Compare a range of non-bank business loans

Data updated regularly
Data updated regularly
Name Product Min. Loan Amount Max. Loan Amount Loan Term Upfront Fee Filter Values
Swoop Finance Business Loan
Swoop Finance Business Loan
$1,000
$100,000,000
1 to 20 years
Depending on your loan contract
Apply online and borrow between $1,000 and $100,000,000. Options for good and bad credit borrowers.
Go to site
More Info
Zip Business Loan
Zip Business Loan
$10,000
$500,000
Up to 5 years
No establishment fee
Borrow up to $500,000 with loan terms of up to 5 years. Flexible weekly, fortnightly and monthly repayment options available with no early repayment fees.
Go to site
More Info
Lumi Unsecured Business Loan
Lumi Unsecured Business Loan
$5,000
$300,000
3 months to 3 years
2.5% establishment fee
Apply for up to $300,000 from Lumi and benefit from short loan terms, no early repayment fees and once approved receive your funds in just one business day.
Go to site
More Info
Capify Unsecured Business Loan
Capify Unsecured Business Loan
$500,000
3 to 13 months
3% origination fee
Unsecured small business loans up to $500,000 . Businesses operating for a minimum of 6 months and having turnover of at least $10,000 a month can apply.
More Info
ebroker Business Loan
ebroker Business Loan
$5,000
$5,000,000
1 month to 30 years
$0 application fee
Small business loans available between $5,000 and $5,000,000. Get access to 70+ non-bank lenders on this independent platform.
Enquire now
Valiant Finance Business Loan Broker
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.
Enquire now
Moula Business Loan
Moula Business Loan
$5,000
$250,000
1 to 2 years
2% Establishment fee
A loan of up to $250,000 that can be approved and funded within 24 hours. Available to businesses with 6+ months operating history and $5,000+ monthly sales.
Go to site
More Info
Max Funding Unsecured Business Loan
Max Funding Unsecured Business Loan
$3,000
$30,000
1 month to 1 year
$0 application fee
An unsecured business loan from $3,000 that offers convenient pre-approval and no early repayment fees.
Go to site
More Info
OnDeck Business Loans
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.
Go to site
More Info
Octet Trade Finance
Octet Trade Finance
$100,000
$10,000,000
1 month to 2 years
Transaction fee 2.5%
Access a line of credit to pay suppliers in over 65 countries. Borrow from $200,000 up to $7 million.
Go to site
More Info
Prospa Business Loan
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.
Go to site
More Info
loading

Compare up to 4 providers

Read our reviews of other brands

View more
Start comparing
Non-bank business lenders often provide businesses with added flexibility as they're privately-owned institutions that aren't subject to the confinements of a banking licence. They do however still have to conform to the same regulations, so they're no less safe to borrow from. Non-bank lenders also get their funding from numerous sources that offer better flexibility and options, making non-bank business loans increasingly preferable among Australian businesses.

If you're thinking about looking for business financing, don't limit your options to regular banks. It's better for your business to consider all of the options available, especially if these options can provide you with more competitive rates, fees, loan conditions and customer service.

What types of non-bank business loans are available?

  • Line of credit. This is a revolving loan, such as a credit card or overdraft, that allows you to withdraw funds up to a maximum limit. As you pay back the loan, you regain access to your funds.
  • Short-term loan. This is an up-front lump-sum loan with a fixed repayment schedule ranging from 3-12 months.
  • Unsecured loan. This type of loan doesn’t require you to attach assets as security for your lender. It could be a term loan with a fixed repayment schedule or a line of credit.
  • Secured loan. This type of loan requires you to attach assets, such as home or business equity, as security for your lender. It could be a term loan or a line of credit.
  • Bad credit business loan. Individuals with bad credit history can qualify for this loan, although interest rates will likely be higher. Bad credit loans may also require asset security.

How to find the best non-bank business loan

There is no one “best” business loan on the market, as it will depend on your particular situation. However, keep the following in mind when weighing up your options:

  • Can my business afford it? As the most important factor in your decision making, be well aware of all loan costs as well as your repayment ability over the next few months.
  • What’s the interest rate? Make sure you know the difference between fixed and variable interest rates and how they can impact your business. Also be cautious of variable interest rates that may exceed your repayment ability.
  • What’s the comparison rate? This combines the loan’s interest rate, fees and other charges into one single percentage to help you better compare your options.
  • What are the fees? Be aware of one-off fees such as application fees, exit fees and termination fees. Other charges include ongoing fees such as service and advance fees.
  • How will I repay the loan? Lines of credit don’t have fixed repayment terms, but lump-sum term loans do and will usually cost you the loan amount plus interest over the loan's term. Also, keep in mind that lenders are usually more flexible with repayments for business loans than personal loans, so check your lender’s repayment terms before applying.
  • Secured or unsecured? The difference between a secured and unsecured business loan is huge, with one requiring you to put up assets as collateral for the lender while the other has no such requirement (usually meaning higher rates). The right choice depends on your particular situation.

Have you weighed up the pros and cons of borrowing from non-bank lenders?

  • Flexible rates. Non-bank lenders are privately-owned institutions, which enables them to be flexible with rates and fees.
  • Customer service. Non-bank lenders usually have better customer service than regular banks. This includes better service, better communication and quicker decision-making.
  • Fewer loan conditions. Generally, non-bank lenders have fewer loan conditions than larger banks, which is a result of the lack of centralisation with decision making. Also, a large portion of non-banks don’t require real estate as security, which is a huge advantage for Australian businesses.
  • Inconsistent rates. Rate flexibility is a double-edged sword, which may mean rate volatility. Since non-bank lenders have several sources of funding, they may or may not pass rate cuts on to consumers.
  • Vulnerability. Non-bank lenders are vulnerable in times of economic downturn due to their dependance on a steady economy and their difficulty accessing capital during these times.

What pitfalls do you need to avoid?

You should always be cautious of debt. Avoid borrowing too much money and learn exactly how much debt your business can handle. Also, try not to apply for amounts that exceed your business needs.

Understand all the fees involved, including one-off and ongoing fees, and be aware of interest rates that exceed the market rates as well as your ability to repay.

You should also be cautious of applying too many times for credit products. Applying and getting rejected for loans will negatively affect your credit history and your ability to be accepted for future loans. Take your time weighing up your options and apply only when you meet all eligibility requirements set out by your lenders.

Compare non-bank business credit card options

Data updated regularly
Name Product Bonus points Complimentary travel insurance Annual fee Interest-free period
American Express Platinum Business Card
American Express Platinum Business Card
200,000
Yes
$1,750
Up to 55 days on purchases
Available to ABN holders w/ $75,000 revenue. Features no pre-set spending limit with up to 55 days to pay for your purchases and a Flexible Payment Option. Plus, rewards, insurance covers and up to 99 additional cards for no annual fee.
Go to site
More Info
American Express Qantas Business Rewards Card
American Express Qantas Business Rewards Card
120,000
Yes
$450
Up to 51 days on purchases
Available to ABN holders w/ $75,000 revenue. Features no pre-set spending limit with up to 51 days to pay for your purchases and a Flexible Payment Option. Plus, Qantas Points, travel insurance covers and up to 99 additional cards for no annual fee.
Go to site
More Info
American Express Gold Business Card
American Express Gold Business Card
100,000
Yes
$169
Up to 51 days on purchases
Available to ABN holders w/ $75,000 revenue. Features no pre-set spending limit with up to 51 days to pay for your purchases and a Flexible Payment Option. Plus, optional rewards and business travel insurance.
Go to site
More Info
American Express Business Card
American Express Business Card
N/A
No
$109
Up to 51 days on purchases
Available to ABN holders w/ $75,000 revenue. Features no pre-set spending limit with up to 51 days to pay for your purchases and a Flexible Payment Option. Plus, the ability to make secure payments via American Express AccessLine.
Go to site
More Info
American Express Velocity Business Card
American Express Velocity Business Card
75,000
Yes
$249
Up to 51 days on purchases
Available to ABN holders w/ $75,000 revenue. Features no pre-set spending limit with up to 51 days to pay for your purchases and a Flexible Payment Option. Plus, Velocity Points, travel insurance covers and Virgin Australia lounge passes.
Go to site
More Info
loading

Compare up to 4 providers

FAQs

Picture: Shutterstock

More guides on Finder

    Ask an Expert

    You are about to post a question on finder.com.au:

    • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
    • finder.com.au is a financial comparison and information service, not a bank or product provider
    • We cannot provide you with personal advice or recommendations
    • Your answer might already be waiting – check previous questions below to see if yours has already been asked

    Finder only provides general advice and factual information, so consider your own circumstances, or seek advice before you decide to act on our content. By submitting a question, you're accepting our Terms of Use, Disclaimer & Privacy Policy and Privacy & Cookies Policy.

    4 Responses

      Default Gravatar
      AMBMay 3, 2019

      I have researched a business idea for 2 years which is new to Australia, done research, ran figures and would like to start. I need to lease land, buy equipment and build one hall. I have found a great property in good location to lease, but how do I go about the financing. $$400,000 would give me enough to pay wages for the first year as well as covering the start up costs. I just don’t know how to go about financing. I have no assets in my name. I researched grants, but for those my business needs to be running for about 9 months before I can apply.

      Reply
        Avatarfinder Customer Care
        JeniMay 5, 2019Staff

        Hi AMB,

        Thank you for getting in touch with Finder.

        Many lenders have strict requirements regarding the amount of time a business needs to have been operating. However, people looking to start a new business can also access funding without the need to offer security. You may find out more about startup loans. I suggest that you speak to your chosen lender regarding your loan application as they can provide options that would suit your business needs most.

        I hope this helps.

        Thank you and have a wonderful day!

        Cheers,
        Jeni

        Reply
      Default Gravatar
      PeterAugust 19, 2018

      I have a startup/early stage online and offline clothing business with patented phone pocket invention that is developed in all respects except sales, which will soon grow through online and offline marketing. Trading for more than 9 months. How can I please get a working capital business loan of $50K-$100K in spite of current very low turnover?

      Reply
        Avatarfinder Customer Care
        JoshuaAugust 27, 2018Staff

        Hi Peter,

        Thanks for getting in touch with finder. I hope all is well with you. :)

        It is true that having a very low turnover would decrease your chance of getting approved for a business loan. However, you may still want to check the non-bank business loan providers on this page. They are less strict compared to traditional banks that follow a meticulous application process.

        Moreover, decreasing your business loan may also increase your chance of getting approved. $50K-$100K is a big amount considering that you have low turnover. Moreover, you can use properties that can serve as securities to convince lenders to give you the money.

        Ultimately, it is the lenders who will assess your application. You might also ask the lender, given with your situation, your other possible options.

        I hope this helps. Should you have further questions, please don’t hesitate to reach us out again.

        Have a wonderful day!

        Cheers,
        Joshua

        Reply
    Go to site