Unsecured business loans

Find and compare flexible business loans that don't require asset collateral

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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. Finding a competitive unsecured business loan can help to achieve all of these goals.

To find out more about how unsecured business loans work and how to find the best one for your business, see below for our comprehensive guide.

Capify Unsecured Business Loan Offer

Capify Unsecured Business Loan Offer

From

10.4 % p.a.

interest rate

From

10.4 % p.a.

comparison rate

  • Borrow up to $300,000
  • Fast application and turnaround
  • Flexible loan repayments
Security Logo

100% confidential application

Capify Unsecured Business Loan Offer

Apply for up to $300,000 from Capify, enjoy a simple application process and with same-day approval you can have your funds within 24 hours.

  • Loan Security: Unsecured
  • Interest rate type: Variable
  • Upfront fee: 3% origination fee
  • Minimum loan amount: $5,000
  • Maximum loan amount: $300,000
  • Fast application and turnaround
Go to site
Promoted

Compare the unsecured business loan rates below

Compare unsecured business loans below. For more information on a loan, click the "More info" button. To apply for a loan or to contact a lender, click "Go to site".

Updated December 16th, 2019
Name Product Starting Interest Rate (p.a.) Starting comparison Rate (p.a) Max. Loan Amount Loan Term Upfront Fee
Capify Unsecured Business Loan
From 10.4 %
10.4%
$300,000
3 months to 1 year
3% origination fee
You will receive a comparison rate of between 10.4% p.a. and 29.9% p.a. based on your risk profile
An unsecured business loan up to $300,000 for eligible businesses. Businesses operating for a minimum of 6 months and having turnover of at least $10,000 a month can apply.
Prospa Business Loan
From 9.9 %
11.75%
$300,000
3 months to 2 years
3% origination fee
You will receive a comparison rate of between 11.75% p.a. and 33.5% p.a. based on your risk profile
Eligible businesses can qualify for a loan of up to $100,000 or up to $300,000 with asset security. Eligibility for loans over $150,000 will be determined based on a variety of factors regarding your business. Note: New loans settled by 31 December 2019 offer a 6 week repayment pause to use when they choose plus the chance to win $6,000. T&Cs apply, click "go to site" to view on Prospa site.
Lumi Unsecured Business Loan
From 15 %
15.64%
$200,000
3 to 18 months
2.5% establishment fee
You will receive a comparison rate of between 15.64% p.a. and 52.14% p.a. based on your risk profile
Apply for up to $200,000 from Lumi and benefit from short loan terms, no early repayment fees and once approved receive your funds in just one business day.
Moula Business Loan
From 8.3 %
15.64%
$500,000
6 months to 3 years
$0 application fee
You will receive a comparison rate between 15.64% p.a. and 52.14% p.a. based on your risk profile
A loan of up to $500,000 that can be approved and funded within 24 hours. Available to businesses with 6+ months operating history and $5,000+ monthly sales. Note: Get the chance to win $2,020 in a prize draw if you submit your application between 1 November 2019 and 30 January 2020.
Valiant Finance Business Loan Broker
From 9.9 %
12%
$1,000,000
3 months to 5 years
$0 application fee
You will receive a comparison rate between 12% p.a. and 52.14% p.a. based on your lenders risk assessment
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.
Max Funding Unsecured Business Loan
From 24 %
24%
$300,000
1 month to 1 year
$0 application fee
You will receive a comparison rate between 24% p.a. and 40% p.a. based on your risk profile
An unsecured business loan from $2,000 that offers convenient pre-approval and no early repayment fees.

Compare up to 4 providers

What is an unsecured business loan?

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

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.

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.

Woman opening her cafe

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.

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:

  • 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

Capify Unsecured Business Loan Offer

Capify Unsecured Business Loan Offer

  • Borrow up to $300,000
  • Fast application and turnaround
  • Flexible loan repayments
Security Logo

100% confidential application

Capify Unsecured Business Loan Offer

Apply for up to $300,000 from Capify, enjoy a simple application process and with same-day approval you can have your funds within 24 hours.

  • Loan Security: Unsecured
  • Interest rate type: Variable
  • Upfront fee: 3% origination fee
  • Minimum loan amount: $5,000
  • Maximum loan amount: $300,000
  • Fast application and turnaround
Go to site
Promoted

Unsecured business loans comparison

Updated December 16th, 2019
Name Product Min. Loan Amount Max. Loan Amount Loan Term Upfront Fee Apply Now
Capify Unsecured Business Loan
$5,000
$300,000
3 months to 1 year
3% origination fee
An unsecured business loan up to $300,000 for eligible businesses. Businesses operating for a minimum of 6 months and having turnover of at least $10,000 a month can apply.
Prospa Business Loan
$5,000
$300,000
3 months to 2 years
3% origination fee
Small business loans are available from $5,000 - $300,000 on terms of up to 2 years.
Note: New loans settled by 31 December 2019 offer a 6 week repayment pause to use when they choose plus the chance to win $6,000. T&Cs apply, click "go to site" to view on Prospa site.
OnDeck Business Loans
$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.
Lumi Unsecured Business Loan
$5,000
$200,000
3 to 18 months
2.5% establishment fee
Apply for up to $200,000 from Lumi and benefit from short loan terms, no early repayment fees and once approved receive your funds in just one business day.
GetCapital Flexible Business Loan
$10,000
$500,000
6 months to 2 years
2% establishment 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+.
Moula Business Loan
$5,000
$500,000
6 months to 3 years
$0 application fee
A loan of up to $500,000 that can be approved and funded within 24 hours. Available to businesses with 6+ months operating history and $5,000+ monthly sales. Note: Get the chance to win $2,020 in a prize draw if you submit your application between 1 November 2019 and 30 January 2020.
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.
Max Funding Unsecured Business Loan
$2,000
$300,000
1 month to 1 year
$0 application fee
An unsecured business loan from $2,000 that offers convenient pre-approval and no early repayment fees.

Compare up to 4 providers

Picture: Shutterstock

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