Working Capital Finance

Take care of your day-to-day business expenses with a working capital loan.

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A working capital loan is short-term funding provided to a business that allows it to keep running from day to day. This means that the operational expenses of the business are covered, even if the business isn't making enough working capital to cover those expenses.

Find out how this loan works and if it's right for you.

How does working capital finance work?

There are many purposes for a working capital loan, such as finding the money to pay your employees who have been waiting for their wages, to tide your business over until the Christmas period comes round again, growing your team as you and your current employees can't handle the rush or purchasing new stock for your business if demand outweighs supply.

Depending on the lender, a working capital loan is an unsecured business loan, which means you do not have to put down any assets in order to be approved. Rates vary between lenders and some lenders offer risk-based pricing, so the rate will vary between businesses.

What are the main benefits of this loan?

The main reasons you would benefit from this type of loan are as follows:

  • Easy online application process. Most lenders allow you to apply online for a business loan.
  • Flexible repayment terms. As lenders are aware this type of loan is for businesses where cash flow ebbs and flows, they generally offer flexible repayment terms.
  • Loan terms. The minimum loan term is 1 month and the maximum is 18, so you can select the loan terms that work best for your business.
  • Quick finance. As money is needed fast in order to remove pressing business debts, the loan amount, once approved, will be in your account in a short amount of time. Just how quickly varies between lenders but it can be in as little as one business day.

Business loans you can apply for today

Capify Unsecured Business Loan Offer

Capify Unsecured Business Loan Offer

  • Borrow up to $300,000
  • Fast application and turnaround
  • Flexible loan repayments
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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
  • Application fee: $0
  • Minimum loan amount: $5,000
  • Maximum loan amount: $300,000
  • Fast application and turnaround
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Promoted
Updated August 23rd, 2019
Name Product Min. Loan Amount Max. Loan Amount Loan Term Upfront Fee Apply Now
$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.
$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.
$5,000
$100,000
3 months to 1 year
2.5% establishment fee
Apply for up to $100,000 from Lumi and benefit from short loan terms, no early repayment fees and once approved receive your funds in just one business day.
$5,000
$1,000,000
3 months to 5 years
$0 application fee
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
$300,000
3 months to 2 years
3% origination fee
A business loan available up to $300,000 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 application fee
Apply for up to $100,000 and get a response within 60 seconds. No upfront or ongoing fees and a transparent fixed rate.
$10,000
$500,000
6 months to 2 years
$0 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+. Note: The establishment fee will be waived if you apply and are approved before 15 October 2019.
$5,000
$500,000
6 months to 2 years
2% drawdown 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.
$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.
$10,000
$100,000,000
Up to 25 years
0.75% application fee
Borrow from $10,000 with multiple repayment options including optional fixed rate periods.

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Are there any restrictions to be aware of?

There are some restrictions associated with this type of loan, including the following:

  • The money must be used on business expenses. Money is only loaned to you on the provision that it will help out your business and its cash flow problems. Therefore, it must only be spent on items such as stock or employee wages, instead of a new car you might have had your eye on.
  • Your business may not meet the eligibility criteria. It's important to be aware of the criteria lenders will be looking for, such as how long your business has been operating and its annual cash flow.
  • Not all lenders are flexible with repayment terms. This is something to keep in mind before you apply as you don't want to be hit with a late repayment fee if another lender is offering more flexible terms.

Is a working capital loan right for you?

Here are a few things to consider when deciding whether a working capital loan is the right credit option for your business.

  • Can my business afford this loan? It's important to consider whether your business will be able to afford to pay off the loan once it's been approved.
  • Secured or unsecured loan. You can choose between a secured or unsecured loan. It depends whether or not you want to put an asset such as your car, home or a business asset, against the loan you apply for, or take on more risk and go for an unsecured loan.
  • Is there a flexible repayment option? Make sure there is a flexible repayment option that will be manageable against the ebbs and flows of your business' cashflow.
  • What are my options? As working capital finance comes in a variety of options, such as a cash overdraft, a personal loan or discounted invoices, it's important to figure out which will work best for your business and its needs.

Is your business eligible?

Here are some criteria to keep in mind while determining whether or not your business is eligible. In order to apply for working capital finance, you must:

  • be a registered business in Australia
  • meet the turnover requirements set by the lender
  • meet the minimum operating terms set by the lender, and
  • be able to make your repayments under the terms you have agreed.

As long as you can meet these requirements, finding a working capital loan that suits the needs of your business becomes a lot easier.

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