Unsecured business loans

Don't own any assets? You could still borrow up to $1m and grow your business with an unsecured business loan.

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Name Product Min. Loan Amount Max. Loan Amount Loan Term Upfront Fee Filter Values
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.
ANZ Unsecured Business Loan
$10,000
No maximum amount
Up to 30 years
Subject to negotiation and will be detailed in your Letter of Offer
Apply for a loan from $10,000 with no security required and benefit from flexible repayment terms.
BOQ SME Recovery Loan Scheme Business Loan
$20,000
$5,000,000
Up to 10 years
No approval or administrative fees
This loan only applies to businesses eligible under the SME Recovery Loan Scheme. An Australian Government backed business loan to help businesses recover from the Coronavirus pandemic.
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.
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.
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.
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.
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.
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.
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 Secured Business Loan
$10,000
No maximum amount
Up to 30 years
Subject to negotiation and will be detailed in your Letter of Offer
Benefit from a low rate when you secure this loan with property and/or business assets. Loans from $10,000 available.
Prospa Business Loan
$5,000
$500,000
3 months to 3 years
3% origination fee
Small business loans are available from $5,000 - $500,000 on terms of up to 3 years. At least six months trading history and a monthly turnover from $6,000 is necessary. Settle your business loan by 31 December 2021 and benefit from no repayments for the first 8 weeks. Interest will accrue over this period.
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.
Westpac Business Loan
$20,000
$3,000,000
1 to 30 years
$0 application fee
Purchase a new vehicle, equipment or support your cash flow with a business finance solution from Westpac.
ANZ Business Loan under the Government SME Recovery Loan Scheme
$5,000,000
Up to 10 years
No approval or administrative fees
This loan only applies to businesses eligible under the SME Recovery Loan Scheme. Bounce back from lockdowns with a loan of up to $5,000,000 with this Australian government backed business loan. Variable rates between 2.49% p.a. and 2.99% p.a.
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What is an unsecured business loan?

An unsecured business loan is a form of business finance that does not require asset security, such as commercial or personal property, as collateral.

Since asset security isn't required for the loan, business lenders view the loan as more risky. This means the amount you can borrow will likely be less than a secured loan and might mean you'll need to pay a higher interest rate.

  • 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.

How do unsecured business loans work?

The eligibility for these loans is based on your business's capacity to repay the loan, which is determined by examining monthly sales and cash flow.

While it used to be the case that businesses needed security to be eligible for a business loan, this is no longer a hard-and-fast rule. Secured business loans are loans in which businesses use property to guarantee the loan. Using an asset as guarantee means that if the business defaults on repayments, the lender can repossess the property to cover the costs of the loan.

Unsecured business loans can be used for a wide range of business purposes. This includes anything from purchasing new inventory, hiring new employees to boosting your working capital to help the business run day to day. Unlike a line of credit, unsecured business loans are paid on a predictable repayment schedule which can make forecasting your costs and expenses easier.

Why don't I need security?

The small business loans market has changed with the rise of fintech lenders. These lenders are filling a gap in the market left by banks as fewer business owners were able to offer security and were, therefore, unable to access business funding. In response to this, banks have now started to offer their own unsecured business loan products, with some targeted at small or innovative businesses.

Are unsecured business loan rates competitive?

Today there are more options than ever when it comes to unsecured business loans. With more and more non-bank lenders entering the market, competition is fierce. And because a lot of these lenders are based entirely online, they have less overheads and are able to offer potentially lower rates than the bigger banks.

This being said, secured business loans do tend to have lower rates than unsecured loans because they pose less risk to the lender.

How much can I borrow?

Lenders offer varying amounts for unsecured business loans but they can range from $1,000 to $1,000,000. You may find that the amount you're eligible for depends on your monthly turnover. For example, if you make $50,000 revenue per month you may be eligible to borrow that amount.

What are the main types of unsecured business finance?

Lenders offer a few different types of business financing that doesn't require security, whether it be in the form of real estate or something else. Consider the following types to see which one might work best for your business:

  • Unsecured business loan

The lender will consider the financial health of your business and whether or not you're in a position to make repayments. The minimum and maximum amounts vary depending on the lender, but the loan amount depends on the lender's assessment of your business. Online lenders such as OnDeck can approve same-day deposits of up to $150,000 with loan terms it feels you can afford.

Many providers have online application processes with no paperwork required. Your business is evaluated through credit assessment technology and you pay no establishment or monthly fees.

Repayment periods are usually short, ranging from three months to three years. The quicker you repay this loan, the more you save on interest and the better your credit profile. Lenders will more readily grant another loan to a responsible borrower.

  • Invoice factoring

Invoice factoring lets you borrow against outstanding invoices and repay the loan once your clients honour those invoices. This is a quick, easy way to fix a business's cash flow problems without putting up property as collateral.

Depending on the company, you can have the money in your account within one business day of the application. This kind of funding can be an option for when you're unable to fill an order because of a cash shortage.

Name Product Min. Loan Amount Max. Loan Amount Loan Term Upfront Fee Filter Values
Waddle Invoice Finance
$10,000
$4,000,000
From 1 month
$0
Apply to borrow up to $4 million against your unpaid invoices and receive your approved funds within 48 hours.
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.
Thornmoney Invoice Finance
$10,000
$5,000,000
0.5% to 1.25% drawdown fee
You'll receive a rate tailored to you, and have up to 90% of your invoices funded. A 0.5% p.a. to 1% p.a. establishment fee applies, however this will be waived if you apply through Finder until 31 March 2022.
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.
Earlypay Invoice Finance
$50,000
$15,000,000
From 1 month
No set amount
Access a revolving line of credit that grows in line with your accounts receivable. Funding available from $50,000 to $15,000,000+.
Octet Invoice Finance
$100,000
$10,000,000
1 month to 2 years
No Set Amount
Convert up to 85% of your company's receivables into cash flow. The value of your receivables need to be worth at least $250,000 to be eligible.
Earlypay Trade Finance
$20,000
$15,000,000
1 month to 15 years
No set amount
Get finance for 100% of your outstanding supplier invoices. Borrow from $20,000 to $15,000,000 with Earlypay.
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  • Purchase order financing

If you're having trouble filling an order because of cash flow problems, you can apply for a loan where the lender pays your suppliers on your behalf. The supplier ships the order to your customer who pays the lender, and any profit from the transaction is deposited into your account.

Instead of demanding property as security, purchase order financing is approved based on your business profile, the risk of the orders, your clients' and suppliers' reputations and experience in the industry.

Besides providing financial breathing room, purchase order financing helps you take on bigger orders, increase turnover and streamline the supply chain. This boosts your business's profile, thereby extending your customer base and eventually enhancing profits.

Business credit cards with no pre-set spending limit

Name Product Bonus points Complimentary travel insurance Annual fee Interest-free period
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.
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.
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.
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.
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.
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  • Trade finance

Similar to purchase order financing, a trade finance loan pays your supplier on your behalf so that you can deliver an order to your customer. You then repay the lender within the agreed-upon period.

Lenders work with foreign exchange partners to find the best interest rates, usually more competitive than those offered by traditional banks. Maximum loan amounts differ, with some lenders offering up to $5 million depending on the order. Repayment is made over a period of 120 days.

Available as a revolving line of credit, trade finance helps small businesses fulfill their orders without putting up their own assets as collateral. This type of loan can be ideal for businesses with suppliers and overseas customers. The lender acts as a third-party financier to facilitate the business deal while you get on with fulfilling the order.

  • Equipment finance

If you're struggling with old or damaged equipment, you can apply for finance to purchase business equipment. Instead of demanding assets as collateral, lenders take into account the strength of your business and anticipated cash flow when considering your application.

Depending on the lender, you can get different loan types to finance a rental lease, financial lease or hire purchase. You then enter into a tailored contract to repay the loan over the agreed-upon period. Lenders like Capital Finance allow the option to purchase additional equipment during the loan and then adjust the repayment terms accordingly.

Pros and cons of unsecured business loans

There are a number of benefits and drawbacks to getting an unsecured loan.

Pros:

  • Less risk to the borrower. There is less risk posed to your business because if you default on the loan, you won't lose your personal or company property.
  • Increased flexibility. An unsecured business loan may come with less limitations, such as how the loan is used, than a secured loan.
  • Quicker turnaround time. Because unsecured loans usually require less documentation, you could get the funds for your business in as little as a few hours with some lenders.
  • Seize opportunities faster.Unsecured business loans can help you acquire funds quickly to help you capitalise on short-term opportunities.

Cons:

  • Higher rates and fees. Unsecured business loans pose more risk to the lender so they tend to cost more.
  • Less finance available. Depending on the turnover of your business, you may find it difficult to borrow larger sums of money without asset security.
  • Bad credit applicants may struggle. If you have bad credit, you might find it harder to qualify for an unsecured business loan. However, some forms of unsecured business finance such as invoice finance do accept bad credit applicants.

Is my business eligible for a loan?

Eligibility criteria differ between lenders but you will usually need to meet the following in your loan application:

  • Business turnover. Lenders may have a minimum turnover requirement.
  • Time in operation. You may be required to show that you've been operating for a certain amount of time. This is usually 6 months to 1 year.
  • Director's credit history. Your business credit files and the personal credit files of directors may be checked.
  • Business premises. You may be required to have been leasing the same location for a certain period of time.
  • Business structure. The requirement is usually that your business is registered in Australia, but lenders may only lend to sole traders, partnerships or other such business structures.

Can I get an unsecured business loan to start a business?

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. Find out more about start-up loans in our guide.

How to compare unsecured business loans

Unsecured business loans come with a range of features that you can look at to compare your options. Make sure you check the following:

  • Loan amount

    Lenders have set minimum and maximum amounts that they will lend, so make sure the amount you need is on offer from the lender.

  • Turnaround time

    Many lenders can now get your approved funds to you within 24 hours, but other lenders may take longer. If you need your funds by a certain time, make sure the lender is able to accommodate this.

  • Interest rate

    Comparing interest rates is a good way to determine how competitive a loan is. However, remember that fees may also apply, so check this when you're comparing. The best way to get a more accurate representation of the interest rate is by checking the comparison rates on our website, as these take into account additional fees.

  • Repayment period

    How long is the loan term? The length of the term will affect how high your repayments are. You can use a business loan calculator to see what your repayments are likely to be and when you will be able to repay the loan.

  • Fees

    Up-front and ongoing fees such as application fees and monthly fees may apply to your business loan. You may also need to pay a loan documentation fee or direct debit fee. Comparing the level of fees you need to pay can help you determine its competitiveness.

Female financial advisor in discussion with client in office conference room

How does a comparison rate work?

A comparison rate is a calculated interest rate that takes into account any mandatory fees attached to the loan (this usually won't include potential late payment and default fees). These fees are added to the cost of the advertised interest rate and then calculated as a percentage.

Comparison rates give a more accurate representation of what you can expect to pay for a financial product. However, lenders can also base the rate they offer borrowers on factors such as credit rating, employment, income and financial history. So, while comparison rates are more accurate than advertised rates, they are not necessarily definitive of a loan product.

Is there anything to keep in mind before I apply?

The two main things to consider are the cost of the loan and whether your business can afford it. Consider your current profits and cash flow and find out how long the loan term will be. By incorporating the repayments into your budget you can see whether you are able to afford it.

How to apply for an unsecured business loan

Start by comparing your unsecured business loan options on this page using the comparison table. Once you've compared the rates and fees, click "Go to site" on your chosen loan. The application process differs between lenders, but you'll generally need the following to apply:

  • Personal identification such as a driver's licence or passport
  • Details of your business accounting software or your business's financial documents
  • The business's ABN/ACN
  • Information about the business's partners or directors

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