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Borrow between $5,000 and $750,000 for up to 3 years and use for any business purpose. Trading for at least 9 months with a minimum monthly turnover of $10,000 is needed.
Businesses can either be lent a lump-sum payment or a revolving line of credit, which is repaid, with interest, over an agreed term (generally anywhere from three months to five years).
Business loans come as either secured or unsecured loans and allow businesses to borrow from $5,000 to $1,000,000, though some lenders do not have limits on their borrowing amounts. Most business loans come with a fixed interest rate and you will need to make repayments on a daily, weekly or monthly basis.
Am I eligible for a business loan? What's the best loan for my business? How do I compare business loans? How do business loan applications get approved? We take you through your business loan application to help you get it across the line.
You'll usually need to have been operating for at least six months to a year for most unsecured business loans offered by alternative lenders and banks, but some do offer unsecured start-up finance. Invoice factoring and equipment loans have less stringent criteria on business age, but you'll need to have been operating for at least one year for business overdrafts or lines of credit.
Your business may need to be making a certain amount of turnover in order to be eligible for a loan. This revenue may be monthly or yearly and can range from $50,000 to $200,000+ p.a. Other lenders simply require you to connect your business's accounting software or financials as part of the application process so they can calculate a loan your business can afford.
The lender may check the personal credit histories along with the company's credit (unless you're a start-up). If the business has unpaid defaults or tax debt, you may need to find a bad credit business loan. However, most invoice financing companies also do not require perfect credit histories.
You'll need to have an Australian Business Number (ABN) or Australian Company Number (ACN) to qualify for any form of business finance.
The best loan for your business will vary depending on a number of factors, such as:
Every business is different and will therefore have different needs and requirements. Luckily, nobody understands your business better than you do – all you need is to understand your options. That's what we're here for.
You can find details of the eligibility criteria involved with each loan product by clicking the "More info" buttons on the comparison table. Checking whether you meet the minimum eligibility criteria before you apply is the first step in your comparison process. This will help you to narrow down choices that are the most suitable for you. If you do not meet the minimum eligibility criteria for a loan, do not apply for that loan.
If you know what loan you need, the next step is deciding what your business can afford. Look at your incomings and outgoings to see what you could comfortably repay without putting too much strain on the business. If it's a loan for a start-up, you'll need to rely on cash flow projections.
Once you've determined what you can afford to borrow, you should compare the rate and any fees or charges for a variety of business loans to find the one that represents the best value for your business.
Lenders offer repayment terms of varying flexibility. Some will allow you to repay daily, others weekly and some will require you to repay your loan monthly. Work out which will best meet your business's needs in terms of your cash flow.
Lenders use a variety of criteria to see if you fit their risk profile and ensure your business can repay the loan.
Start-up finance is usually harder to find and be approved for, so if your business is established, you will find it easier to get a loan. The business turnover is also considered and lenders usually have a minimum requirement for monthly or annual turnover. They may also use your turnover to determine what the business can afford to repay.
The lender will assess the company directors' personal credit scores as part of the application process, and if the business is established, the lender will also check the company's credit score. Assessing credit scores allows lenders to determine how risky your business is to lend to.
If you receive credit card payments in your business, lenders may use the volume of these payments to judge your ability to repay the loan. The assumption among some new lenders is that you will use this volume to repay the loan.
Similar to credit card volume, lenders may factor your accounts receivable value into their asset ratios to help them make a decision.
Lenders will check what company structure you have and how long you have been in the existing structure. If you have recently undertaken a restructure or are applying for finance in the middle of restructuring, lenders may not want to finance you at this time.
Does your business have an existing debt with another lender? This will be considered as part of your application.
For various business loans, including for example a revolving line of credit, your business will usually need to be profitable to be approved.
Read our guide on how to get approved for a business loan
No matter where in Australia you're looking for business finance, there are loan options available. Take a look at the map below to see what some of your options could be.
There are a number of mistakes that applicants make when applying for a business loan, from choosing the wrong loan option to submitting an incomplete application.
In terms of the type of loan, it's always a good idea to try to think realistically about what would best suit the business in terms of finance volume, flexibility and repayments.
When it comes to submitting the documents, you should always understand what you'll need to provide to the lender before beginning your application. Omitting or forgetting to submit vital information or documents may lead to an application being delayed or rejected altogether.
See the common mistakes to avoid when applying for a business loan
There are a number of reasons why a lender may reject a business loan application. It is important to ask for feedback from your lender if they do reject your application. This feedback will give you insight into what you did wrong, which you can improve on for the next time you apply. If the lender is unable to provide this feedback, you may want to review your application and see if you can spot any red flags yourself.
Read our guide on why your business loan application may have been rejected
The lender will specify which credit history they will need to check, but generally, the lender will want to verify the company directors' credit histories. Your business's financials may also be checked using accounting information that you supply as part of the application process.
Read the guide on business loans and your credit file
Business finance is split into two main categories: debt finance and equity finance. Equity finance is provided by an owner or an external investor, whereas debt finance is provided by a bank, credit union or business lender. Below, you can find out more information about the different types of short-term and long-term business debt finance that are available.
You have a set limit and can use up to that limit when you need it. Repayments are flexible as long as you keep the account in good standing.
You can get funds that you are required to pay over a set term, which is usually between 3 and 12 months.
This works just like a personal credit card except it's for business expenses, and you can add multiple additional cardholders.
If you have outstanding invoices and you need them to be paid, you can sell them to an invoice financing company and receive what you're owed minus a fee.
This is a secured loan available for businesses of all sizes with leases also being available.
There are various options available to let you purchase or lease equipment.
Business overdrafts are attached to your business banking account and allow you to overdraw up to a specified limit on that account. You only pay interest on your outstanding balance.
This is a long-term business loan that allows you to borrow a set amount of money and repay it in pre-determined repayments.
This type of lending allows you to use your expected cash flow as collateral for the loan.
This type of finance allows you to fund the purchase of goods from domestic or international suppliers.
i am recently retired man. i am on aged pension. i need business loan to purchase established business. i want to put some $25000 –$ 35000/ in to it from super annuation funds. i am regularly getting aged pension from centrelink.please guide me the lenders who are liberal in granting business loan to me.
Hi Vinod!
Thanks for reaching out to us.
To apply for a business loan, generally, you will need a summary of your business’ financials, a business plan, financial forecasts (including cash flow forecasts) and your personal information. However, many new lenders simply request to log into your business’ accounting software to get this information for themselves.
You can visit these pages to help you choose the lenders for your business.
Business loans receiving Centrelink payments.
This page shows all business loans but doesn’t sort our pension applicants.
Hope this helps. Feel free to read through and message us should you have further questions.
Regards,
Nikki
my question is l am looking for information for a business online banking account, what will be the monthly fees be to have this online account? l have obtained information from NAB and CWB that the account will be zero a month for an online account when you do not use the branch, all banking is done online. to have an OD attached to this online banking business account the fees are below for an unsecured amount.
for OD facility NAB is 14.5% with 1.75% annual fees
for OF facility with CWB 14.75% with 1.75% annual fees
what is will the account fees be with ANZ and Westpac
l cannot see where l find these on your site.
also how long back did a zero fee for online banking start with an online banking account, what year?
Hi Claire,
Thank you for your questions.
1. l am looking for information for a business online banking account, what will be the monthly fees be to have this online account?
Depending on the type of account, some banks have nil monthly fees, others may charge as much as $20. The business bank accounts you can compare in the market is listed here. Most banking accounts these days can be done easily through online.
2. What is will the account fees be with ANZ and Westpac?
You can find more information about ANZ business accounts and its fees on this page. For Westpac, Depending on the account, they charge $10 monthly account fee for their Westpac Business One Account – Low Plan and $20 for Westpac Business One Account – High Plan
3. How long back did a zero fee for online banking start with an online banking account, what year?
I’m afraid we don’t have information in that regard. But most banks offer cheaper if not zero fees on some of their online bank accounts to their customers helping them save money on monthly charges.
Hope this helps.
Cheers,
May
small business unsecured loan of 300,000. to buy an existing profitable business , with low fixed interest , no early payout fee ,over 5years approx. Have financial statements of business and $800,000. assets of my own , so could be secured loan.
Hi Tom,
Thank you for your inquiry. Please note that we are not affiliated with any company we feature on our site and so we can only offer you general advice.
Whilst we can’t really recommend a specific lender to you as we are a comparison website, you may like to check our guides on these pages:
Secured business loans
Unsecured business loans
Secured vs. Unsecured business loans
You’d be best to confirm directly with the lender about your loan options and eligibility.
Best regards,
Rench
Hello,
Just wondering if there are any finance options available for me. Right now all I have is my business plan and projections from my account. That’s it, no assets, no defaults on my credit score however I do have 3 inquiries(Business related). I’m looking for funding for my equipment, without the equipment we can’t start. Is there any chance at all for me?
Regards,
Mike.
Hi Mike,
Thanks for contacting finder.
You may visit these links https://www.finder.com.au/determining-your-business-finance-options and https://www.finder.com.au/equipment-finance for you to get a better look on the business loan, equipment funding and funding options available to you, and how you can determine the best type of financing for your business.
Cheers,
Joanne
Is there a possibility of being funded without collateral and a guarantor? Low doc, etc..?
Hi Trevor,
Thank you for your inquiry.
You may want to consider the following low doc loans.
Low Doc Personal Loans
Low Doc Home Loans
I hope this information has helped.
Cheers,
Harold
A lot of small businesses sell on the basis of sec-52 statement? I want to obtain a business loan on that basis. Please help me.
Hi Gun,
Thanks for your inquiry.
You’re actually already on the correct page on where you can compare your options for business loans. They also cater to small businesses. Please click on the name of your preferred loan to see more details, then you can click on the ‘Go to Site’ button to submit an online application.
This page will also be helpful. You can make use of the business calculator and get more information.
Cheers,
Rench
I want to invest in a business and I want to know how much I can borrow
Hi Joss,
Thanks for your question.
The amount you can borrow would depend on the assessment of the lender of your income, assets, credit history, etc. You can discuss your loan options with a lender featured above. Be sure to review the criteria and requirements before you apply.
Hope this helps.
Cheers,
May
I’m an international student. I want to open a fancy clothing store here in perth.
what i really wanted to ask is, can i get loan? and what should i have to do for that? please help me through this.
Hi Aashim,
You can find out more about temporary resident loan options on this page but I’m unaware of any lenders that can offer business financing if you’re on a student visa. However, you may be eligible for a personal loan. If you’re looking to purchase property or already own property you may be eligible for a secured loan with a bank – you can find out some more information on this page.
I hope this helps,
Elizabeth
seeking an unsecured (start up) business loan of $60,000.00 over 6 years. The proposed business is the same type of business I have been establishing in shopping centers since 1984 (experienced) and have never defaulted.
your thoughts?
Hi JH,
The only lender we have available for comparison that will allow you to fund a new business venture is Max Funding – you can find out more about its loan here.
Hope this helps,
Elizabeth
Hi,
I’m a new migrant on PR, wanting to buy land to build houses to sell. As I currently do not have a job, could you advise avenues that I can utilize to get loan to purchase the land and loan for construction too. Thanks
Hi Sam,
The business loan available on this site are outlined on the page above, but the only one available for new businesses is Max Finance. You’ll need to get in contact with them directly regarding your current situation and eligibility.
Hope this helps,
Elizabeth