unsecured-business-loan

Unsecured business loans

You can use an unsecured business loan to secure funding for your business without risking your much-needed assets.

When considering finance for your business, there are a few things that are often at the forefront of a business owner's mind: reducing costs, maximising benefits and minimising risk to the business. With an unsecured business cash loan, you can access a convenient credit option with minimal risk to your business as you do not have to attach an asset as a guarantee. Compare your options and enjoy fast online approval, a quick turnaround time and flexible repayments to suit your cash flow.

Prospa Business Loan

Prospa Business Loan

  • Loans up to $250,000
  • Same-day turnaround
  • Repay early without penalty
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100% confidential application

Prospa Business Loan

A convenient business loan up to $250,000 that can be applied for online. Same-day turnaround.

  • Interest rate type: Variable
  • Application fee: $0
  • Minimum loan amount: $5,000
  • Maximum loan amount: $250,000
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Unsecured business loans comparison

Updated January 18th, 2019
Name Product Min. Loan Amount Max. Loan Amount Loan Term Application Fee
$5,000
$250,000
3 months to 2 years
$0
A business loan available up to $250,000 that can be funded in 1 business day. Must have a turnover of $6,000+ per month and provide 6 months of trading history, 3 months history for existing business purchases.
$5,000
$500,000
3 months to 2 years
$0
Apply online for up to $500,000 and get access to over 25 lenders through Lending Express.
$5,000
$100,000
1 to 3 years
$0
Apply for up to $100,000 and get a response within 60 seconds. No upfront or ongoing fees and a transparent fixed rate.
$5,000
$1,000,000
3 months to 5 years
$0
A Small Business Lending Specialist from Valiant Finance can give you access to competitive business loans from over 60 lenders. Loans between $5,000 and $1 million are available. Request a call – your loan can be funded in 1 business day.
$5,000
$250,000
6 months to 2 years
$0
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.
$10,000
$500,000
6 months to 2 years
Initial draw down fee
A flexible business loan up to $500,000 with convenient top up and redraw facilities. Business must have been operating for 9 months+ and have monthly sales of $10,000+
$5,000
$500,000
6 months to 2 years
Initial draw down fee
A business loan up to $100,000 for unsecured loans, or $500,000 for secured loans that you can use for any business purpose. Transparent costs and redraw facility available.
$10,000
$250,000
6 months to 2 years
2.5% origination fee
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.
$10,000
$400,000
3 months to 2 years
$0
Benefit from a fixed interest rate and no upfront fees with a loan available up to $400,000. Must have been operating for at least 18 months and have turnover over $200,000.

Compare up to 4 providers

How does an unsecured business loan work?

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. Smaller, unsecured business loans can be accessed through non-traditional lenders as well as some banks. These loans require no guarantee and are based on your business's capacity to repay the loan, which is determined by examining monthly sales and cash flow.

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.

Is my business eligible for a loan?

Eligibility criteria differ between lenders but you will usually need to meet the following:

  • 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.
  • 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.

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.

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 startup 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.
  • 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.

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
  • Information about the business's partners or directors

Compare unsecured business loans

Updated January 18th, 2019
Name Product Min. Loan Amount Max. Loan Amount Loan Term Application Fee
$5,000
$500,000
3 months to 2 years
$0
Apply online for up to $500,000 and get access to over 25 lenders through Lending Express.
$5,000
$250,000
3 months to 2 years
$0
A business loan available up to $250,000 that can be funded in 1 business day. Must have a turnover of $6,000+ per month and provide 6 months of trading history, 3 months history for existing business purchases.
$5,000
$100,000
1 to 3 years
$0
Apply for up to $100,000 and get a response within 60 seconds. No upfront or ongoing fees and a transparent fixed rate.
$5,000
$1,000,000
3 months to 5 years
$0
A Small Business Lending Specialist from Valiant Finance can give you access to competitive business loans from over 60 lenders. Loans between $5,000 and $1 million are available. Request a call – your loan can be funded in 1 business day.

Compare up to 4 providers

Picture: Shutterstock

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