Working Capital Loan

With flexible repayment terms and an easy online application, you can get fast working capital for your business.

Updated Dec 15, 2021. What changed?

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With a working capital loan, you can get fast funding for your everyday business operations. Even if your business isn't making enough to cover operational expenses, you're still covered. This can be useful if your business experiences reduced activity or sales during certain times of the year.

Business loans you can apply for today

BOQ SME Recovery Loan Scheme Business Loan

Government backed
No fees
General use

100% confidential application

BOQ SME Recovery Loan Scheme Business Loan

This Australian Government backed business loan is designed to help your business recover from COVID19 lockdowns. Eligibility requirements apply.

Loan security: Secured
Upfront fee: No approval or administrative fees
Minimum loan amount: $20,000
Maximum loan amount: $5,000,000
Maximum loan term: 1 year

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1 - 15 of 17

Name	Min. Loan Amount	Max. Loan Amount	Loan Term	Upfront Fee
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.	Go to site More Info	Compare	loading Fetching your data...
Swoop Finance Business Loan	$18,000	$90,000,000	3 months to 30 years	Depending on your loan contract	Apply online and borrow between $18,000 and $90,000,000. Options for good and bad credit borrowers.	Go to site More Info	Compare	loading Fetching your data...
Zip Business Loan	$10,000	$500,000	6 months 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.	Go to site More Info	Compare	loading Fetching your data...
Westpac Business Loan	$20,000	No maximum amount	1 to 30 years	Subject to Negotiation	Purchase a new vehicle, equipment or support your cash flow with a business finance solution from Westpac.	Go to site More Info	Compare	loading Fetching your data...
Heritage Bank Equipment Loan	$20,000	$500,000	Up to 5 years	$450	This business loan is designed to buy new or used equipment and has borrowing amounts between $20,000 and $500,000. No monthly fees and the loan is secured against the assets purchased.	Go to site More Info	Compare	loading Fetching your data...
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. Note: Loans settled by 30 June 2022 are eligible for a no repayment period for the first 6 weeks of the loan.	Go to site More Info	Compare	loading Fetching your data...
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.	Enquire now	Compare	loading Fetching your data...
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.	Enquire now	Compare	loading Fetching your data...
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.	Go to site More Info	Compare	loading Fetching your data...
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.	Go to site More Info	Compare	loading Fetching your data...
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.	Go to site More Info	Compare	loading Fetching your data...
Westpac SME Recovery Loan	$15,000	$5,000,000	3 to 10 years	upon application	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. Borrow up to $5,000,000 over 1 years with this low interest rate loan.	Go to site More Info	Compare	loading Fetching your data...
NAB Business Recovery Loan	$20,000	$5,000,000	Up to 10 years	No approval or administrative fees	An Australian government backed loan with competitive rates to assist businesses after lockdowns. Borrow up to $5,000,000. Variable rates from 4.5% p.a. up to 3.95% p.a.	Enquire now	Compare	loading Fetching your data...
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 $5,000 is necessary. Note: Loans approved by 30 June 2022 are eligible for no repayments for the first 8 weeks of their term.	Go to site More Info	Compare	loading Fetching your data...
Octet Trade Finance	$100,000	$12,000,000	1 month to 2 years	Transaction fee 2.5%	Access a line of credit to pay suppliers in over 65 countries. Borrow from $100,000 up to $12,000,000.	Go to site More Info	Compare	loading Fetching your data...

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What is working capital finance and how does it work?

A working capital loan can provide funding to cover operational costs, helping you run your daily business activities. You can use the funds to cover cash flow gaps, pay bills and staff, purchase inventory or pay for marketing expenses. This type of finance is useful if your business has seasonal sales.

Loan terms are also short, ranging from a few months to 2 years. Repayments terms are also flexible, allowing you to tailor it to the ebbs and flows of your cash flow. These loans are also easy to apply for, with most applications online. They also feature fast turnaround times, and you could receive funding within 1 business day.

How much you can borrow will depend on the lender and your ability to repay the loan.

What are the pros and cons of working capital finance?

Pros.

Quick and easy funding. These loans generally have easy applications and fast turnaround times. This means that you don't have to wait to get finance.
Unsecured options available. You can choose an unsecured option and not put up business or personal assets.
Match repayments with cash flow. This takes off the pressure of repayments when business is low.

Cons.

Can be more expensive. The interest rate may be higher than for a standard business loan. The loan can also be risk-based, so interest rates will depend on your credit score. The better your score, the lower the rate and vice versa.
Short terms. Loan terms are generally short, so it may help you in the short run. But if you need finance again, you'll have to reapply or find a longer term solution. Additionally, if you borrow a large amount, short terms means large monthly repayments.

What should I consider before I apply?

Here are a few things you need to consider before you apply:

How much does the loan cost? As useful as the loan is, you also have to pay it back. Take into account the interest rate and also loan term. WIll you be able to pay back the loan and most importantly, can your business afford it?
How much do I need to borrow? Consider how much you need to borrow and borrow only what your business needs. You'll have to pay it back with interest, after all, and you may end up borrowing more than what you can afford.
Is it secured or unsecured? The loan can be either secured with an asset or unsecured. You could put up an asset and borrow more, or go for an unsecured option. Unsecured loans generally come with lower borrowing amounts.
Are repayments flexible? Make sure you check if the lender offers flexible repayment terms. This can help you manage repayments during the ebbs and flows of your business cashflow.
How does it compare against other options? There are other ways to get finance, including business overdrafts or invoice financing. Consider other options and look into how it compares. Are there cheaper, more flexible options?
How long do you need funding for? If you only need funding for a short period, this loan can be useful. But if you need long term funding, this loan is unsuitable.

Is my business eligible for a working capital loan?

The eligibility criteria will differ based on the lender. In general, you'll need to meet the following criteria:

Minimum income. You'll need to meet the lender's minimum income requirement to qualify. This can be a certain amount of monthly sales.
Age of business. Your business may need to be in operation for a certain amount of time. Some lenders may require your business to be in business for over 6 months, but it can range up to a year.
Active ABN or ACN. You'll need an active Australian Business or Company Number to apply.
GST registration. Your business also may need to be registered for GST.

Apart from this, as for all loans, your business will have to demonstrate it can repay the loan.

How can I apply for a working capital loan?

🤔 Work out how much you need to borrow and what you can afford. You can use a personal loan calculator to help you.
🔎 Start comparing lenders and loan products. Don't forget to compare interest rates, fees and eligibility criteria. You can use the comparison table on this page.
✅ Select a lender. Click "Go to Site" to be directed to the lender's page, or "More Info" if you want to read about the lender.
🖨️ Organise and prepare the required documentation. This will make the application process easier.
📱 Apply. Most lenders have their applications online.

Frequently Asked Questions

Interest can be charged 1 of 2 ways. The first is the standard method, where you receive a rate when you take out a loan. That rate is applied to the amount you borrow. Alternatively, you could also receive a risk-based interest rate. This is when you receive a rate based on the risk the lender is taking by loaning money to you. Generally, if you have good business finances and a good credit score, you'll be considered low risk, and vice versa.

Thank you for your feedback!

Alex Jeffs

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Alex Jeffs is the senior publisher for personal, car and business finance at Finder. He has been building websites since he was 14 years old and has tested cars everywhere from race tracks to Oodnadatta.

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