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Office & Practice Fit-Out

Our business finance brokers understand all of your business needs and finance requirements. Whether you are outfitting a medical practice or setting up a new office space, we  will be there with you every step of the way of getting finance sorted. We have access to 45+ lenders who are fighting to get your business and we know how to deal with them.

Franchise Finance

Opening a franchise? Our Financial Engineers can arrange finance for a very large number of franchises ie Subway, Flight Centre, Domino’s, etc.  Drop us a line with the details of the franchise you’re purchasing and we’ll let you know what your lending options are across 30+ lending options.

Equipment & Machinery Finance

Growing a successful business requires purchasing new equipment and machinery.  If your business equipment needs a refresh, our financial engineers can find asset finance lending options best suited for your. Avoid tying up valuable cashflow by financing your equipment as well as acquire vehicles for business purposes.

BUSINESS OWNERS, WE UNDERSTAND

We understand, you’re busy running a business. That’s why we handle everything so you can focus on your business. You will have a personal and dedicated finance manager who will be available at any time of the day to assist with all your finance needs.
Consider us your personal bankeR… for all the banks. 

Why Choose Us

Quick Approval, Easy Process
We will guide you through this ever growing complex pre-approval and application process, helping you achieve your property or business dreams much easier and in much less time. Efficiency and speed is our forte, you'll see.
Access To 45+ Lenders
Not only do we deal with all the major banks and 2nd tier lenders but also a number of building societies, credit unions and specialised lenders that offer discounted rates and have flexible credit policies that other brokers don't even know exist.
Our Customers Love Us
Just check out our online reviews. We've helped countless people get into their first home even when they thought there was no way, or save thousands on their repayments, or secure that new business loan just in time. It's safe to say, we care.
We Welcome Complexity
We take pride in assisting clients who have unusual circumstances or just want extra attention. Where other brokers have failed, we regularly get the approval across the line. Plus, we can negotiate discounted interest rates not publicly advertised.

OTHER TYPES OF BUSINESS FINANCE

What Is Debtor Finance?

Debtor finance is a way for a business to use its accounts receivable ledger as collateral for funding. Debtor financing is most appropriately used by businesses who are heavily reliant on the incomings and outgoings of invoices. It’s usually the most suitable way for these businesses to manage cash flow.

Some times the interest rates can work out to be quite high when annualised. A debtor finance facility is usually managed as a short term cash flow solution.

Generally, the funder will pay you up to 80% of your outstanding invoice value now, and then pay you the balance only after the customers pay the invoice (minus a fee for providing the early money).

Debtor financing is broken in to two different types:

  1. Invoice discounting
  2. Invoice factoring

What Is Invoice Discounting?

Invoice discounting — this is where you as the business will continue to manage the collection of payment from the invoiced customer.

Invoice discounting involves a level of trust on the behalf of the lender in the loan terms. You’ll likely need to be a more established business with larger turnover from trusted debtors to be eligible for this type of lending.

What most business’s like about this is the clients are unaware of any invoice discounting arrangement.

What Is Invoice Factoring?

The other form of debtor financing is invoice factoring – where the lender takes over payment collection process on invoices due to the borrowing organisation. Invoice factoring organisations will therefore call and chase down the customer to request payment when the payment deadline comes up, as well as pursue any further collection processes (if necessary).

Invoice factoring allows the business owners to focus on other areas of the business and not chase payments of debtors. Clients will know that the business owner is using a factoring solution due to collecting their payments.

As invoice factoring is more labour intensive for the lending organisation, invoice factoring arrangements are often more expensive than invoice discounting.

The Pros And Cons Of Debtor Finance

Pros:

✓ Greater Flexibility ✓ Improve Cashflow ✓ Tailorable Financing ✓ Discount Opportunities ✓ Improve Relationships ✓ No Property Security ✓ Improve Payment Terms ✓ Tax Deductions ✓ Maintain Control

Cons:

X High Interest X Credit Rating Impact X Long Contract X Client Perception X Loan Eligibility X Lost Profit

Weighing Up The Pros & Cons

Every debtor finance facility and every business is different, but there are still some standard pros and cons for you to help you make the right decision.

Benefits Of Debtor Finance

Debtor finance enables business owners to solve their mismatched cash flow problems, giving them access to already earned cash. This allows businesses to pay important expenses in the present without fearing about low cash flow issues.

Debtor finance also allows your business relatively quick access to cash compared to other loan products and unlike other products is flexible and develops with your business as it is secured to the accounts receivable ledger – as a business grows its account customers, the ability to increase debtor finance facility also increases.

For organisations with poor account receivable processes, invoice factoring could be an easy solution to outsource and improve the collections process.

✓ Flexible access to cash as required Debtor finance provides convenient and flexible access to cash when you need it. Debtor finance is ideal for businesses that are growing quickly or need to take into account seasonal fluctuations.

✓ Improves your cashflow With debtor finance, you no longer have to wait for debtors to pay. You can improve your cashflow and access your money faster. It quickly provides financial stability, making it easier to manage fluctuations.

✓ Is tailored to your situation Unlike traditional business loans, debtor finance is specifically tailored to your businesses exact requirements. The amounts will vary depending on how your business is running so it is specific to your situation and needs.

✓ Creates opportunities to negotiate With improved cashflow, there are opportunities to renegotiate repayment terms. If you have suppliers, this is a good chance to discuss early repayment discounts that could further reduce business costs.

✓ Property security is not required Debtor finance does not require assets or property as security. Typically, no guarantors are needed. Instead, you offer your debtor ledger as security. This makes it easier for younger businesses and businesses without security to still access financing.

✓ Extend your payment terms With the help of debtor finance, it is easier for you to offer improved repayment terms to your clients. Debtor finance takes the worry out of cashflow, so you can concentrate on offering the best service to your clients.

✓ Lower your tax payments The principal and interest payments on your debtor finance are considered businesses expenses by the government. This means that they can be deducted from your business’s income when it comes to doing your taxes.

✓ Improve your customer relationships (Invoice Factoring) Letting your lender take over payment collection can help you maintain your customer relationships. By removing yourself from the debt collection process, you can concentrate on building positive personable relationships with your clients.

✓ You maintain customer ownership (Invoice Discounting) Invoice discounting allows you to manage the payment collection process. This confidential agreement between yourself and the lender means your clients are not privy to the financing situation of your company.

Drawbacks of Debtor Finance

Debtor finance is a specialised finance solution for organisations that sell products and services on payment terms. Other business forms that do not rely on accounts receivable would not qualify for this form of financing.

Debtor financing also tends to be more expensive compared to other products, and businesses tend to need to have to meet a certain level of revenue in order for a lender to agree to debtor financing.

Business owners choosing invoice factoring will cede overall management of their accounts receivable ledger potentially highlighting to their clients the lending and collections arrangement.

X Often have higher interest rates Your interest rate and total costs will be impacted by your cashflow, credit history, business credit rating, debt history and more. Depending on these factors, you may face a relatively high interest rate.

X It impacts your credit rating Each loan that you take out will be noted on our credit report which will impact your business credit rating. Depending on the terms of the lender you may find yourself paying higher interest on subsequent loans due to higher risk of continuous borrowers.

X Can have long contracts Depending on the lender and the financing terms, you may have to negotiate the length of the contract so that it works for your business.

X Can impact client perceptions (invoice factoring) When a lender is taking care of the payment collection process it could send a message to your clients that you are struggling financially. The communication and collection process should be handled well to avoid negatively impacting your brand.

X It could impact future loan eligibility Using your invoices as collateral can impact your ability to get more conventional business loans. You will not be able to use your accounts receivables as part of your collateral, which could negatively impact your chances of approval.

X Debtor finance costs you money The debt factoring service costs you money. While you may save some amount of time and potential costs by getting funds sooner, ultimately you are paying for this service and this will results in. loss of profit.

Are You Eligible?

Every debtor finance lender has their own eligibility criteria. Although you will find that many have some criteria in common. Our credit specialists work with over 70 lenders, so we can help you find the lender and terms that are right for your business.

  • Australian Business
  • Annual Turnover Of 200K+
  • Trading For 1 Year+
  • Run A Profitable Business
  • Be Creditworthy

Reasons Debtor Finance Applications Are Declined

If you do not meet a debtor finance lenders criteria, your application may be declined. To avoid this situation, we suggest reviewing whether you fall into any of the below situations, and speaking to one of our loan specialists to see which lender will work best for your specific business situation.

  • Poor credit score
  • Outstanding debt
  • Short trading time
  • Weakening industry
  • Inadequate cashflow
  • Limited collateral

Applying For Debtor Finance

Applying for debtor finance is similar to applying for other loans in that you will have to provide business bank/financial statements. A large accounts receivable volume will be a determining factor here for any lender considering the provision of a debtor financing solutions.

1. Provide Some Info Tell us a bit about your business and your debtor finance needs.

2. Compare Lenders See the loans and lender that you pre-qualify for and compare your options.

3. Apply Today Complete your application or chat with one of our business loan advisors.

How To Use Debtor Finance

If your organisation has a large accounts receivable ledger and as such, potentially falls into a temporary period of low cash on hand, a debtor finance solution could be your best response.

Due to the relatively high annualised rate of a debtor finance facility, it is often advisable to view debtor finance as a purely short term cash flow solution – viewing longer term finance solutions for other projects.

Debtor finance is often most useful in the early lifespan of a business when income stability is most critical. This is why debtor finance is so often used to meet day-to-day demands by bringing your cashflow forward.

  • Managing ongoing costs
  • For growth opportunities
  • Managing seasonal fluctuations
  • To get funding when banks can’t help

Frequently Asked Questions

Why would I use debtor financing? Businesses choose to use debtor financing so that they can access the cash that is owed to them immediately, rather than waiting for their debtors to pay them.

Is debtor finance right for me? Debtor finance is used by a range of businesses who may have a long lead time between invoicing and payment. These often include manufacturers, construction businesses, service industries, wholesalers, and growing businesses.

Do I qualify for debtor financing? Lenders want to provide debtor facilities to businesses who sell goods or services to other creditworthy businesses. They may also take into account your credit score, the age of your business, your cashflow and more. If you want to find out what facilities you may qualify for, please contact us and our experts will discuss your options with you.

Do I need to provide security? Most lenders will provide the facility against the assets of your business, rather than requiring property. But this ultimately depends on the lender and your individual circumstances.

How do I apply? It is simple to start the application process, either use our free loan wizard to find the right facility or give us a call to chat about your needs. From there we can help you find the right lender, loan and rate and walk you through the application.

Can my startup get a debtor facility? Debtor finance is ideal for startups as it evens out cashflow helping them to grow. To find out if your business is eligible give us a call on 02 9195 6982 to chat about your specific situation.

A merchant cash advance (also known as an MCA or credit card receivable funding) is a quick, easy way to get a cash injection for your business with no need to provide collateral (putting your house on the line!) or to have a great credit score. It can provide your business with a quick lump sum payment. This payment is then paid back in instalments based on a percentage of your sales.

A merchant cash advance is a unique type of loan facility in that the amount that is loaned (or ‘advanced’) is calculated and approved based on the turnover and sales of your business. Instead of having regularly scheduled repayments like other business loan products, merchant cash advances are paid off daily as a share of your sales.

Merchant cash advances are characterised by speedy funding, lower amounts of documentation & no need for security. All you need to show is that your cash flows are steady and regular.

Since merchant cash advances have such a fast turnaround time and don’t require credit checks or collateral, they are well suited to fast-paced businesses that receive a majority of its payments via card.

Pros & Cons Of A Cash Advance

Pros: ✓ No Collateral Required ✓ Repayments Are Automatic ✓ Access Cash Fast ✓ Steady Your Cashflow ✓ Simple Application ✓ Easier To Qualify ✓ Bad Credit Score ✓ Smaller Loans ✓ No Credit Impact ✓ No Restrictions ✓ Flexible Payments

Cons: X Higher Interest Rate than Bank Loan X Needs Card Payments X Short Term Financing X Less Flexible Repayments

Benefits Of A Merchant Cash Advance

Merchant cash advances often have a far easier approval process when compared to other business loan products. Providers have lower documentation requirements and often can complete an agreement without needing copies of financial statements, tax returns or other business documents. Less weight is also placed on personal credit scores as given the daily repayment structure of the cash advance, merchant cash advance lenders are more concerned about the cash flows of the business rather than your own personal credit history.

✓ Collateral Is Often Not Required Your merchant cash advance will be secured by your future sales. There is no collateral requirement. If you fail to pay, or take longer to pay, your assets are not at risk, nor is there any personal liability to pay off the merchant cash advance. Be careful to check if you are providing a guarantee as a director of the business though! This might mean that if you fail to make repayments, the lender is entitled to seek repayment from you personally.

✓ Repayments Are Made Automatically Repayments on your merchant cash advance are made automatically based on your credit card transactions. The automated payment system means you don’t have to manually make any payments and will be highly unlikely to incur any late fees as long as your business keeps generating sales.

✓ Gain Access To Funds Quickly Merchant cash advances can often be financed within one to two working days. Unlike bank loans that can take weeks or months to finalise, a merchant cash advance is relatively simple to apply for, process, and quick to receive.

✓ Keep Your Cashflow Consistent Merchant cash advances repayments are based on a percentage of your monthly sales. This means that if you have a slow sales month, you won’t have to make the same payment as you would if you had a good sales month. It keeps your cashflow steady.

✓ The Application Process Is Quick & Simple There is minimal paperwork required to apply for a merchant cash advance. They require little documentation, are mostly completed online, and are processed far quicker than typical small business loans.

✓ The Application Process Is Quick & Simple There is minimal paperwork required to apply for a merchant cash advance. They require little documentation, are mostly completed online, and are processed far quicker than typical small business loans.

✓ Less Stringent Requirements If you don’t qualify for a traditional business loan, you may still qualify for a merchant cash advance. Lender underwriting criteria are easier to meet than standard bank loans and they don’t require collateral or a guarantor.

✓ Your Credit Score Is Less Important Standard business loans will typically require that you have a good credit rating. A merchant cash advance however, is not as focused on this number as they are more interested in cashflow. This means you may qualify for a merchant cash advance even if you can’t get a bank loan.

✓ Gain Access To Smaller Loans It can be difficult to find lenders who will provide smaller business loans. A merchant cash advance provides business owners with access to as little as $5,000 cash. This means you do not have to take on more debt than you need.

✓ You Keep Control Of Decisions Unlike other business loans, you are free to spend the money as you please. You are not required to state what you plan to use the money for or provide an explanation to a lender.

✓ There Are No Fixed Payment Dates Or Amounts There is no set interest and the amount you need to pay back never changes. Unlike a typical business loan there are no late fees as payments are made automatically and there is no set repayment deadline to meet as it is based entirely on your cash flow.

✓ Less Stringent Requirements If you don’t qualify for a traditional business loan, you may still qualify for a merchant cash advance. Their underwriting criteria are easier to meet than standard bank loans and they don’t require collateral or a guarantor.

Drawback Of Merchant Cash Advances

Merchant cash advances tend to be more expensive than regular loans, so make sure you know the annual percentage rate (APR) so that you can compare to other loan products. Despite getting an advance of cash, given the lender takes a percentage of your daily sales it will reduce your cash flow relative to if you didn’t have the facility. Being dependent on future sales you should double check that your cash flow will be enough to cover the costs and leave you with enough cash to effectively run your business.

X They Cost More Than Other Business Loans The high cost of a merchant cash advance is reflective of the risk that the lender is taking on. It is the downside to all of the other benefits that is being provided by this form of finance.

X Not Suitable For Businesses With Low Card Payments Merchant cash advances are really only suitable for businesses who have a high volume of credit and debit card payments. They are not ideal for businesses that are paid primarily in cash as repayment would take significantly longer.

X They Are A Short-Term Solution Companies requiring long-term financing are not ideal candidates for a merchant cash advance. Most lenders require that business owners complete their repayments within a year. This is why cash advances are more expensive.

X Some Fine Print Can Reduce Your Flexibility Some lenders may prohibit you from making any fundamental changes to the way you run your business. This can include switching credit card companies, offering cash discounts, or allowing you to revise your hours of operation.

Common Reasons To Take Our A Merchant Cash Advance

Merchant cash advances are one of the fastest ways to secure funding for your business and are suitable for a wide range of business purposes. If you have had any adverse events on your personal credit report but your business has steady sales then a merchant cash advance could be a fantastic product for your business.

  • Pay Urgent Bills
  • Marketing Opportunities
  • For Seasonal Needs
  • Purchase Equipment
  • Hire New Employees
  • Cover Expenses
  • Renovate Or Expand
  • Purchase Stock

Eligibility & Application

Applying for a merchant cash advance is a fairly different process to other business loan products. Lenders do not require as much business information and are less concerned with your personal credit score given the facility is effectively backed by your sales.

What lenders are concerned about is whether your business has predictable, regular steady cash inflow so that they are able to be paid back a percentage of the sales volume for the loan drawn out.

Should You Apply?

Merchant cash advances are suited to businesses that use credit cards to take payments and have a credit card transaction history. It is ideal for businesses that want to avoid making steep payments and want the payments to fluctuate with the sales of the business. The fast nature of MCAs means they are well suited to immediate cash needs.

Some of the common industries who take out merchant cash advances include hospitality and retail businesses.

Ways You Can Apply

Speak To Us Give us a call on 02 9195 6982 for a no-obligation chat with a specialist.

Chat With Us Live chat with one of our loan advisers by clicking the button below.

Top Reasons You Could Be Declined

There are a few requirements lenders make of business owners before offering merchant cash advances. To avoid being declined for an MCA, speak to one of our credit specialists. We work with over 70 lenders so we can help you find a lender, loan and rate that will work for you and your specific needs.

  • Lack Of Credit Card Payments
  • Outstanding Debt
  • Young Business
  • Weakening Industry
  • Inconsistent Revenue

Frequently Asked Questions

What Are The Merchant Cash Advance Fees?

Merchant cash advance fees are unique in the business loan industry. Unlike traditional business loans that have an interest rate, a merchant cash advance providers charge a “cost of capital” fee, usually somewhere between 1.1x to 1.4x of the amount that was advanced i.e., if you borrowed $100k, your total repayments might be between $110k to $140k.

The total fees of your merchant cash advance will depend on the amount you want advanced, the term length and the total holdback amount (i.e., the % proportion of daily sales that are going towards paying off the advance).

In addition to the above merchant cash advance fees, some lenders will charge additional fees. These could include a monthly account keeping fee, assessment fee, processing fee, or establishment fee.

To find out what your total fees would be for your requested merchant cash advance, give us a call on 02 9195 6982.

How Quickly Can I Get A Merchant Cash Advance?

A merchant cash advance is one of the fastest forms of business financing. It does still vary from client to client but can be funded in as little as 24 hours. Factors that influence how fast you get your funds include; the lender, your cashflow, the terms you require, and how quickly the required documents are provided.

How Can I Get A Merchant Cash Advance Online?

The application process for a merchant cash advance is simple and fast, meaning a majority of the application can be done online.  One of our credit specialists will get in touch to process your application and collect the required documentation.

Can I Get A Merchant Cash Advance With No Credit Check?

Because Merchant Cash Advances provided based on your volume of sales and overall health of your business, your credit score is not as important of a factor. For this reason, there may be some lenders who are willing to lend to you either without a credit check or if you have a bad credit score, but rates will likely be higher.

Can I Get A Merchant Cash Advance If I have Bad Credit?

Depending on the lender and your specific business, you may qualify for merchant cash advance even if you have a poor credit score. The lender will take into account the overall health of your business and cash flow to determine if you are eligible, and will typically charge higher fees to mitigate their risk.

Unsecured business loans allow you to borrow money for your business without the need for collateral. Unlike secured loans which require you to borrow against an asset such as a vehicle or property, unsecured loans aren’t guaranteed. As a result of not requiring any collateral, unsecured loan applications are often assessed on the basis of business cash flows and the borrower’s creditworthiness.

This means that for an unsecured business loan, the financial health of your business and your credit score will have a larger impact on whether you are approved.

Unsecured business loans are short-term by nature. Depending on the lender, unsecured business loans can be provided for anywhere from 3 months to 3 years, however, some of our peer-to-business lenders can provide an unsecured business loan for up to 5 years.

The key feature of an unsecured business loan is that it does not require any collateral; i.e. no one can make a claim on an asset of the business if repayments can’t be made. This makes the loan more risky when compared to a secured business loan and as a result, lenders will charge a higher interest rate and provide the funds for a shorter amount of time.

Unsecured loans can be used to finance any business-related costs. It gives you the flexibility to smooth your cash flow, purchase equipment, and access funds quickly.

Pros And Cons Of Unsecured Business Loans

Pros:

✓ Simple Application Process ✓ No Security Required ✓ Funds Available Fast ✓ Builds Lender Trust ✓ Assets Are Protected ✓ Improved Credit History ✓ Higher Credit Limit

Cons:

X High Interest Rates X Personal Guarantees X Difficult To Qualify For X Smaller Loan Amount X Shorter Loan Terms X Liability Requirements X Repayment Penalties

Benefits Of An Unsecured Business Loan

An unsecured business loan allows your business to gain faster access to cash compared to other business loan products and is a great alternative if you do not want to use your personal or business assets as collateral.

If your business defaults on an unsecured business loan, the lender won’t be able to seize any of your personal or business assets like they would if you defaulted on a secured business loan. An exception to this is if you have provided a director’s guarantee as a part of the unsecured business loan. If this is the case then your business assets will still be safe, but you will be personally financially liable for covering any default made by the business.

✓ The application process is fast and simple It is easy to apply for an unsecured business loan, because no security is required. You do not have to itemize your assets and the lender does not have to value that collateral. You can apply for an unsecured loan online, usually in just a few minutes, and the turnaround time is much faster than a secured loan.

✓ There is no security required The main advantage of an unsecured business loan is that no security is required. If you do not have collateral such as property or other fixed assets, you can still access funding. It also means you can liquidate or upgrade your equipment as you need.

✓ You gain access to the funds quickly The unsecured business loan application process is quick. There is less paperwork required and less to evaluate, so they have a much faster turnaround time. A straight-forward unsecured loan application can be approved in as little as 2 hours with same day turnarounds and settlements up to 24-48 hours.

✓ It helps to build a relationship with your lender Approval of an unsecured loan shows a high level of trust between you and the lender. It requires that the lender trust you and your business. Once you have paid it back, it can lead to an even higher level of confidence, easier access to finance, and potentially better terms.

✓ They are easier to access Unsecured loans give businesses who do not meet the bank’s rigorous lending criteria the opportunity to access financing. Even if you do have property to present as collateral, you may still be able to find funding via an unsecured loan.

✓ You and your business assets are safe If you are unable to repay a secured loan, lenders are able to seize the business assets that were used to secure the loan. Comparatively, unsecured loans do not put your assets at risk. If for some reason you go bankrupt, unsecured loans may be able to be discharged.

✓ It improves your business credit score Successfully paying off your unsecured loan will help to build your credit history, improve your business credit score and make it easier to obtain a loan in future.

✓ The loan is not constrained by the collateral value Secured loans are typically constrained by the value of the property or asset being used as collateral. Unsecured loans, however, are dependent on your business credit score and cashflow.

Drawbacks Of An Unsecured Business Loan

Given collateral is not required, unsecured business loans are generally a riskier type of loan to give for lenders. To compensate them for the additional risk of default relative to a secured term loan, unsecured term loan lenders will often charge a higher interest rate and provide the loan for a shorter time period.

When applying for an unsecured business loan, the cash flow health and creditworthiness of your business will have a much higher impact on the approval of any application. Lenders will therefore place most focus on the bank statements of the business, assessing inflows & outflows, conduct and existing commitments, to determine an amount they are able to comfortably lend whilst leaving some surplus. Secured lenders look at more elements when assessing applications, whereas unsecured lenders typically base their decision on bank statements and credit scoring, thus if a business owner accidentally overdraws their account a few times, it may lead to an unfavourable outcome.

X Your interest rate will be higher Unsecured loans are higher risk for lenders than secured loans, and as such the interest rates are often higher. You will likely pay more for an unsecured loan over the long term, depending on the quality of your credit score.

X A personal guarantee is generally required While an unsecured loan does not require you to put down assets or property, this doesn’t leave you completely off the hook as many lenders may require that you provide a personal guarantee. This means you will be held personally responsible for repayment of the loan if your business cannot afford to pay back the loan balance.

X They can be difficult for some businesses to qualify for The high-risk nature of unsecured loans means lenders can be stricter with their lending criteria. This means if you have a poor personal or business credit score or no credit history at all, you may find that you don’t qualify for funding.

X Loan amounts can be smaller To mitigate risk, some lenders will reduce the amount that they are willing to lend without security. This results in lower loan amounts being offered to business owners.

X The tenure of the loan is shorter Some lenders require a tighter repayment schedule to reduce their risk. This can mean you don’t have access to funds for as long as a secured loan and it can be difficult to extend your loan terms.

X Repayment penalties could be applied Lenders want to dissuade their borrowers from paying back their loan balance too quickly. They do not want to lose out on the potential interest that will be gathered for the duration of the loan repayment period. To deter borrowers from paying back their loan immediately, they may charge additional fees or have a minimum stay-in period.

Are You Eligible?

Check the eligibility criteria below to see if you qualify.

  • Australian Business
  • Annual Turnover Of $75k+
  • Trading For 3 Months+
  • Run A Profitable Business
  • Be Creditworthy

Common Reasons Unsecured Loans Are Declined

Unsecured loans are higher risk for lenders, which means that the eligibility criteria are stricter. We work with over 70 lenders, so we can explore all of your options in depth and ensure we find you a loan, rate, and terms that work with you.

  • Poor credit score
  • Outstanding Debt
  • Young Business
  • Weakening Industry
  • Seasonal Business
  • Inconsistent Revenue

Secured Versus Unsecured Business Loans

The main difference between a secured and an unsecured business loan is that a secured loan requires that you have assets that you are willing to put down as collateral against your loan. An unsecured loan does not require that you borrow against an asset or property.

Secured loans Secured loans are more commonly offered by banks. They provide businesses with access to larger loan amounts than unsecured loans because they are lower risk for lenders.

Unsecured loans Unsecured business loans do not require you to put up assets as collateral. They are usually smaller in value and have higher rates than secured loans due to the risk to lenders.

Applying For An Unsecured Business Loan

In order to provide approval for an unsecured business loan, lenders will need to be comfortable that your business will be able to support any required loan repayments.

In order for lenders to assess the stability and risk of your business, they will often require you to provide a combination the below as part of an application for an unsecured business loan:

  • Business financial statements
  • Business tax returns & statements
  • Business bank account statements

As a part of the application for an unsecured business loan, you may be asked to provide a ‘director’s guarantee’. This means that you – as a director – are ‘guaranteeing’ that the loan will be paid back and that if the loan can’t be paid back and goes into default, that you will be personally financially liable for the repayments. This could potentially involve the lender seizing personal assets to recover the value of the loan.

1. Provide Some Info Tell us a bit about your business and your unsecured business loan needs.

2. Compare Lenders See the loans and lender that you pre-qualify for and compare your options.

3. Apply Today Complete your application or chat with one of our business loan advisors.

What Is An Unsecured Business Loan Best Used For?

An unsecured business loan can be used for a myriad of business expenses. Whatever it is that you need for your business, an unsecured loan can help you finance it.

Due to the short life-span of an unsecured business loan, they are best suited to aiding short-term working capital needs rather than funding large, lengthy business projects. As an example, they are a fantastic way to give your business some temporary breathing room when paying wages or suppliers.

Unsecured business loans also provide a great quick cash-boost to allow you to take advantage of and kickstart potential growth opportunities for your business. A great example of this is if there is an opportunity where you know some additional marketing spend would result in an increase in sales but you don’t have the cash for it — an unsecured business loan would be a perfect way to raise the funds to undertake the marketing and grow your business.

  • Purchase property
  • Renovating business
  • Buying inventory
  • Hiring employees
  • Buy equipment
  • Increase working capital
  • For marketing
  • Move premises
  • Pay staff
  • Tax payments

Frequently Asked Questions

Am I eligible for an unsecured loan? A few factors determine whether or not you will qualify for an unsecured loan. These include the length of time you have been trading, your financials, your credit score, your cashflow, and your monthly turnover.

What do I need to apply? Unsecured loans do not require as much paperwork as a secured loan. Basic information, such as your previous 3 banks statements and identification, are required as a minimum.

How much can I borrow? The maximum you can borrow will is typically based on your most recent bank statement. Your cashflow, credit and the lender do impact this number as well. Typically, we see unsecured loans max out at around 250K.

How long will it take me to apply? Applying for an unsecured loan is relatively quick. Our team can help you with the application over the phone and this will typically take just a few minutes.

How long until I know if I’ve been approved? The quick turnaround time for an unsecured loan means our team may be able to get you an answer on the same business day.

How much interest will I pay? The interest rate is impacted by a range of factors, including your cashflow, your credit, the health of your business, the lender, the term, and more. Unsecured business loan interest rates typically sit around 10-20%.

Can I pay off an unsecured loan early? Yes, you can typically pay off a business loan early however most lenders will not allow you to make early lump repayments on top of your usual weekly/monthly payment. However, most lenders will allow you to pay out early in full without penalty i.e. just pay back the remaining principal. A few lenders may charge you for interest of the full term or part of the term as some may have a minimum stay-in or lock in period. Therefore it is important to consult one of our working capital specialists to help you choose a lender that offers flexibility without penalties.

What is the standard loan term? Unsecured loans are typically used as a short term source of financing due to their higher interest rates. They can, however, be anywhere from 3 months to 5 years (less common), with most unsecured loans being repaid over a 12 month period.

When will I get the money? One of the main benefits of an unsecured loan is how quickly you can get your funds. Depending on the complexity of the loan and the specific lender requirements, the funds may be in your bank account in as little as 24 hours.

Who offers unsecured business loans? There is a range of non-bank unsecured business loan lenders in Australia. We work with over 70 of these lenders to provide businesses with a simple way to compare their terms and rates. Our goal is to ensure that you find the right financing solution for your business.

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