Home to more than five million people, Sydney boasts thousands of small and mid-sized businesses competing for their share of consumer dollars. Of course, it's only natural that many of these businesses need access to more capital than they currently have, with many even needing extra capital to get started in the first place. Business owners need money to expand, to buy out their partners, to buy new equipment, or to get around a momentary cash flow problem.
When you're looking for a business cash loan in Sydney, you have the option to look beyond large financial institutions to many of the other lenders who specialise in providing business cash loans.
Prospa Business Loan Offer
Prospa Business Loan Offer
Same day funding
Unsecured and secured options
100% confidential application
Prospa Business Loan Offer
Get access to a small business loan from $5,000 - $300,000 with a limited time 6 week repayment pause and the chance to win $6,000 if your loan is settled before 31 December 2019. T&Cs apply, click "go to site" to view on Prospa site.
Loan Security: No asset security required to access funds up to $100,000
Interest rate: from 9.9% p.a. to 26.5% p.a.
Comparison rate: from 11.75% p.a. to 33.5% p.a.
Establishment fee: 3% origination fee
Minimum Turnover: $6,000 per month
6 months trading history as a new business
3 months trading if purchasing an existing business
It can be expensive to borrow small amounts of money and borrowing may not solve your money problems.
Check your options before you borrow:
For information about other options for managing bills and debts, ring 1800 007 007 from anywhere in Australia to talk to a free and independent financial counsellor
Talk to your electricity, gas, phone or water provider to see if you can work out a payment plan
If you are on government benefits, ask if you can receive an advance from Centrelink: Phone: 13 17 94
The Government's MoneySmart website shows you how small amount loans work and suggests other options that may help you.
* This statement is an Australian Government requirement under the National Consumer Credit Protection Act 2009.
How do business cash loan providers in Sydney work?
You can look for a business cash loan that gives you access to approved funds within 24 to 48 hours, and you can use the proceeds from such loans for just about any business purpose. You can borrow as little as $1,000 and some lenders in Sydney provide business loans of up to $500,000. The option to choose between a secured and unsecured business loan exists, but to get an unsecured loan there's a good chance you will have to meet stricter eligibility criteria.
Some lenders offer business loans without requiring financial statements and tax returns, while loan terms typically range from one to 36 months. Repayment plans can also vary.
What businesses can use a cash loan?
There are many businesses that can unexpectedly have a cash shortfall - not just in the retail space. A business cash loan could be used by
Automotive and mechanics
Beauty salons and spas
Hotels and Bed & Breakfasts
Nightclubs and small bars
Daycare and child care centres
Hair Dressers and Tanning Salons
Case Study: Steve's Construction Business
Steve runs a local construction business in Sydney, specialising in home renovations and upgrades. He generally works on family homes and residences but has just picked up a larger contract for a sub-division complex. He will require at least three times as many materials, truck hire and an extra staff member. Unfortunately, he is still waiting on payment for his last job but has had a steady stream of jobs over the last financial year.
Steve really wants to complete the sub-division job but needs to find funds to make his new hire and fund the new equipment. He decides to take out a business cash loan online for $10,000. Steve calculates his repayments and finds out the job and past invoices will cover the future repayments.
Payday providers comparison
Products on offer.
Does the lender in question offer just one type of business loan or does it provide you with alternatives? Some lenders give you the option to choose between secured and unsecured loans, quick-approval loans and loans to buy equipment.
While some business loan providers require you to submit your business activity statement (BAS), tax returns and financials, others do away with these requirements and offer business loans with minimal paperwork.
Make sure you find out about all the fees your loan attracts, starting from the moment you apply until you pay the loan off completely. Some of the fees you might have to pay include application fees, loan disbursement fees and settlement fees.
You can repay a business cash loan in two ways. One way is to pay an agreed-upon percentage of your daily EFTPOS sales until you pay the loan in full. Alternatively, you can set up automatic direct debits to make daily, weekly, fortnightly or monthly repayments. Some business loans allow extra repayments to give you the ability to save on interest by paying your loan off sooner.
In what areas in Sydney can you obtain short term loans?
You can expect to get a loan for your business no matter where it is located just about anywhere in Sydney. Some of the locations these lenders service include the following.
The Central Business District.
We all know where the CBD is—if in doubt, look for all the skyscrapers and the big crowds of people.
The Inner East
This includes areas like Kings Cross, Surry Hills, Woolloomooloo, Darlinghurst and Paddington.
The Inner West
Once home to working-class residents, this area now boasts expensive restaurants, cafes and shopping strips. Suburbs in the inner west include Newtown, Leichhardt, Balmain and Glebe.
The Eastern Suburbs
This is where you can expect to find suburbs like Randwick, Waverley and Woollahra.
The Northern Suburbs
The northern suburbs, with their vast expanses of greenery, is a region which includes Epping, Hunters Hill, Putney and Woolwich.
The Hills district
This refers to the north-western suburbs and includes suburbs like Winston Hills, Pennant Hills, Beaumont Hills and Rouse Hill.
Pros and cons
Quick and convenient. You can complete an online application, lenders can check your credentials online and you can get an almost instant approval. If you don't have the required paperwork, you can expect certain lenders to provide you with loans that require less documentation.
Collateral not necessary. While you have to provide some form of security if you're looking for a secured loan, you can also find a number of unsecured business loan options that don't require you to provide any collateral.
Improve your credit rating. If you suffer from a poor credit rating, you can link your repayments to EFTPOS transactions and this can have a positive effect on your credit rating in the long run.
High interest rates. If you have a poor credit history, there's a good chance you'll only qualify for business cash loans that attract high interest rates. You can also end up with a higher than average rate if you don't compare your options well.
Unethical lenders. Since the business loan sector does not follow strict regulations, it is home to some unscrupulous lenders. Make sure you're dealing with a lender you can trust.
Questions to ask your business cash loan provider
What interest rate do I have to pay? This is amongst the most important questions you should ask because it can have a significant effect on how much you end up repaying.
What fees does this loan include? Before you apply for any loan, make sure you ask the lender about every single fee the loan might attract in the future. This can save you from nasty surprises down the road.
What repayment options do I have? This tells you if you can choose between different payment plans and if you can make extra repayments.
What kind of paperwork do I have to provide? Since different lenders have different requirements when it comes to paperwork, know exactly what you have to submit ahead of time.
While you can use funds from a business cash loan for different purposes, bear in mind that you have multiple options to choose from. Take some time to compare a few loans and pick one that meets your specific needs.
Matt Corke is the head of publishing in Australia for Finder. He previously worked as the publisher for credit cards, home loans, personal loans and credit scores. Matt built his first website in 1999 and has been building computers since he was in his early teens. In that time he has survived the dot-com crash and countless Google algorithm updates.
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