small-business

Small Cash Business Loans

Does your business need some quick funding? Find out about small business cash loans.

Many small businesses have cash flow that fluctuates. While business finance is available to cover these periods, not all business loans suit smaller funding needs. Small cash loans for businesses are available to cover you for just what your business needs.

 

Compare a range of business cash options

Rates last updated February 19th, 2018
Name Product Min Loan Amount Max. Loan Amount Loan Term Application Fee Product Description
Prospa Business Loan
$5,000
$250,000
0.25 to 2 years
$0
Apply for up to $250,000 and receive your approved funds within one business day. Note: Businesses must have a turnover of more than $5,000 per month and be able to demonstrate 6 months of trading history.
Spotcap Loans
$10,000
$400,000
2 years
$0
Take advantage of a fixed interest rate and no upfront fees with this business loan, available up to $400,000. Note: Business must have been operating for at least 18 months and have turnover over $200,000.
Moula Business Loan
$5,000
$250,000
0.5 to 1 years
$0
Small business loans of up to $250,000 approved and funded within 24 hours.
Transparent fees and rates. Note: Business must have been operating for at least 12 months and have monthly sales of at least $5,000.
Sail Unsecured Business Loan
$5,000
$100,000
1 year
2.5% origination fee
Apply for up to $5,000 even if you have bad credit. Note: Business must have been operating for at least 6 months and have turnover over $50,000.
OnDeck Business Loans
$10,000
$150,000
0.5 to 2 years
$0 (2.5% origination fee)
Apply online for up to $150,000 with OnDeck and receive approved funds in one business day.
businessloans.com.au Flexible Business Loan
$5,000
$500,000
0.5 to 1 years
1.5% Initial draw down fee
A 100% online business loan with amounts available from $5,000. Flexible eligibility criteria and transparent rates and fees.

Compare up to 4 providers

How does a small cash business loan work?

These loans are designed to help businesses in need of a small amount of funds. The loans may have shorter repayment terms than a standard business loan (generally between three and 12 months) and repayments are more regular, usually daily or weekly.

Most small business cash loans come with a minimum amount of between $1,000-$10,000 so you're able to borrow just how much you need.

Application of the loans can be conducted online and you will be required to provide some financial information for your loan to be processed.

How should you compare small business cash lenders?

  • Loan term. These are short term business loans which come with short repayment periods. The standard business cash loan will come with terms of less than one year but you may find lenders that offer longer terms. Choose a provider that has terms that meet your business's needs.
  • Fees. Some of the fees you can expect to pay include an establishment fee and a monthly account fee. You'll also be charged fees for late repayments or if you default on the loan. Remember to include the cost of these fees when you're comparing your options.
  • Interest rates. Lenders may charge you an annual rate or a factor rate, which is charged on your loan principal and is usually accompanied by daily repayments.
  • Funding time. If you're in urgent need of funds then this is a good factor to consider. Some business cash lenders can have your loan approved and in your business account by the end of the day, whereas others may take longer.

How to weigh up the benefits and drawbacks

  • Quick approvals. These loans are approved quite fast and you can have your loan approved in as little as 24 hours.
  • Options for bad credit applicants. Some small business cash loans are available to people with less-than-perfect credit. Keep in mind a higher rate may be charged.
  • Easy application. Most lenders allow you to plug your business accounting software into the loan application so your business can be evaluated quickly.
  • Higher interest rates. The majority of lenders will be more expensive than standard bank loans due to the higher risk and shorter loan term.
  • Short repayment term. These loans come with a short repayment term, usually a maximum 12 months. You can get an extension on your loan term, but this will mean that you will pay more.

What are the risks?

  • Terms and conditions you are not comfortable with.
    With any loan, you must read the terms and conditions, fully understand and be comfortable with them. Small cash business loans offer shorter loan terms, higher interest rates and stiffer penalties than other types of loans. You must be comfortable with these terms before you can sign up for one to avoid problems with repayments.
  • Loan amounts you don’t need.
    Just because you are eligible for the maximum loan amount doesn’t mean that you should apply for it. Only apply for what you need and what you can confidently repay.

Frequently asked questions

It depends on the lender because different loan providers will have their different loan approval systems. The good news is that most lenders will give you a response within 24 hours, some even within the hour.

Picture: Shutterstock

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