These are the types of loans our website & tool support

Unsecured Business Loans Types

Secured Business Loans Types

Additional Types of Financing

General Overview of Loan Types & Interest Rate

Loan TypeSecuritiesTermsAvg Loan SizeEstimated Interest Rate
Unsecured Business LoanUnsecured3-24 months$50,000High
Business Line of CreditUnsecured3-12 months$50,00014%-30%
Invoice FinanceInvoices3-180 days$10,0003%-5%
Merchant Cash AdvancePending Payments1-2 months$20,00015%-25%
Equipment FinanceEquipment1-5 years$75,0006%-15%
Asset FinanceAsset1-7 years$100,0001.6%-15%
Working Capital LoanUnsecured1-24 months$35,0001.75% p/m
Secured LoanSecured1-10 years$100,0003%-12.5%
Business Credit CardUnsecuredOngoingVaries6%-20%
OverdraftSecuredOngoingVaries5%-12.5%

We work with some of the…

Best Small Business Lenders Australia

Our editorial staff have picked the best small business loan options for Australian SMEs in 2024:

  • Best Small Business Loans in Australia: Lend.com.au – Smart algorithmic matching with 50+ different Australian lenders. Covers both unsecured and secured finance. Strong online system with hourly status updates.
  • Most Apt for Bad Credit: Max Funding – Diverse financing solutions, transparent rates.
  • Biggest SME Lender: Prospa – ASX traded company with excellent interest rates for unsecured business loans.
  • Biggest Global Brand: OnDeck – Est. 2007, prominent U.S lender with a strong offering in Australia.
  • Best for Line of Credit: Lumi – line of credit specialists with excellent customer reviews.
  • Best Newcomer: Butn – Buy Now Pay Later for Businesses (up to 75k).
  • Honourable mentions: Capify, Shift, and Business Fuel.

Max Funding: Transparent Small Business Loans, from 1.8% interest rate prospa new logo Capify: The Industry Veteran from 2002 shift OnDeck: The Global Mega-Brand Zip Business: Line of Credit Specialist

Eligibility for an Unsecured Business Loan in Australia?

While many business owners hope for a situation in which they could find a magical “bad credit guaranteed approval loan“, the reality is that a business owner has to demonstrate they are able to actually repay the loan before a business lender would commit funds towards one. More so, for unsecured business loans. Here are examples showing the criteria across 4 leading Australian lenders:

ProspaOnDeckShiftLumi
Min.Time Trading6 months12 months9 months6 months
Min. Turnover$72,000 p/a$100,000 p/a$100,000 p/a$50,000 p/a
Sole Traders
Startups
Bad CreditYes, if borrower shows profitabilityYes (min credit score 500)✖ (Min credit score 500 for Working Capital)Yes – specialising in bad credit loans
Lender ReviewPROSPA REVIEWONDECK REVIEWSHIFT REVIEWLUMI REVIEW

To learn more about how Australia’s online lenders stack up against each other, view this comprehensive guide in which we compare small business loans by product offering, credibility, compatibility, customer reviews and business loan interest rates.

Loan Terms

Funding SizeLending TermsSecurity Required
Short Term Loans$2,000 – $30,0001 – 36 MonthsSecured or Unsecured
Bad Credit Loans$2,000 – $50,0001 – 36 MonthsVehicle or Property
Caveat Loans$10,000 – $50,0001 – 36 MonthsReal Estate Property (mortgage OK)
Second Mortgage Loans$200,000 – $1,000,0001 – 36 MonthsReal Estate Property (mortgage OK)
Low Doc Business Loans$500,000 – $1,000,0001 – 36 MonthsReal Estate Property (mortgage OK)
Fast Business Loans$2,000 – $10,0001 – 24 MonthsVehicle or Property
Unsecured Business Loans$2,000 – $30,0001 – 12 MonthsNone
Franchise Loans$3,000 – $1,000,0001 – 36 MonthsReal Estate Property (mortgage OK)
Equity Business Loans$20,000 – $1,000,0001 – 36 MonthsReal Estate Property (mortgage OK)

Education Centre: Our Business Loans FAQ

FAQ

What is SmallBusinessLoanAustralia?

SmallBusinessLoanAustralia is a brand offering a unique tool to search across 50+ lenders for business loans in Australia. Our platform, powered by Lend™ technology, provides a fast, online process for securing business loans.

How does the SmallBusinessLoanAustralia loan finder tool work?

The loan finder tool integrates with over 50 leading online business lenders in Australia. By filling out one application, you get matched with suitable lenders based on your business information, needs, and security offered.

What types of loans can I find using SmallBusinessLoanAustralia?

You can find various loan types, including unsecured business loans, bad credit business loans, business lines of credit, SME Loan Guarantee Scheme loans, working capital finance, business overdrafts, secured business loans, and more.

Is the application process entirely online?

Yes, the entire process is online. You can apply in minutes without the hassle of endless calls or excessive paperwork.

How long does it take to get a loan offer?

Once you submit your application, you can receive loan offers quickly, often within minutes. The decision-making process is expedited compared to traditional lenders.

Will applying for a loan impact my credit score?

No, using our loan finder tool to get loan offers does not impact your credit score.

What information do I need to provide to apply for a loan?

You will need to provide details about your business, financials, the amount you wish to borrow, the purpose of the loan, and any securities you can offer.

Can startups apply for loans through SmallBusinessLoanAustralia?

Yes, startup financing is available among the types of loans offered by our lending partners.

What is the minimum trading period required to apply for a loan?

The minimum trading period varies by lender. Some lenders require as little as six months of trading history, while others may require up to 12 months.

Do you offer loans for businesses with bad credit?

Yes, we have options for businesses with bad credit. Lenders like Max Funding specialize in offering bad credit business loans.

What are the interest rates for the loans?

Interest rates vary depending on the type of loan and the lender. For example, unsecured business loans can have higher interest rates, while secured loans might offer lower rates.

What is the maximum loan amount I can apply for?

The maximum loan amount varies by lender and loan type, ranging from $5,000 to $1,000,000.

What is the typical loan term?

Loan terms vary based on the type of loan and lender but generally range from 3 months to 10 years.

Are there any fees associated with applying for a loan?

Some lenders may charge origination fees or other costs. These details will be provided during the application process.

Can I repay the loan early?

Yes, many lenders allow early repayment, often without any penalties. This can be confirmed with the specific lender you are matched with.

What is the SME Loan Guarantee Scheme?

The SME Loan Guarantee Scheme is a government-funded, temporary scheme that supports businesses impacted by economic challenges by offering government-backed loans.

How do I know which loan is right for my business?

Our platform provides guidance and recommendations based on the information you provide. Additionally, we offer resources and guides on different types of loans to help you make an informed decision.

Can I apply for multiple loans?

Yes, you can apply for multiple loan offers through our platform, but it’s important to manage the amount of debt your business can handle.

What security is needed for a secured loan?

Security can include assets such as equipment, real estate, or other business assets. The specific requirements depend on the lender.

How do I get started with SmallBusinessLoanAustralia?

To get started, simply fill out the application form on our website. Provide the necessary details about your business and financial needs, and you will be matched with suitable lenders within minutes.

When to use specialised small business lenders and when to use banks?

Bottom Line: Online SME Loans vs Banks

Use an online small business lender in Australia if –

  • You require money urgently. Working capital financing or equipment financing qualify as an urgent need, a construction loan is more long term.
  • You are not able to receive a business loan from the bank.
  • You do not want to go through the hurdles of applying to a bank with all the preparation and paperwork involved.
  • You need the money for only a short period of time.
  • You are looking for unsecured financing.

Use an Australian small business bank loan if –

  • You are an established business that can get a loan with the bank.
  • You are able to complete all the necessary paperwork.
  • You are happy to wait weeks or even months for the application process to end.
  • You can supply the necessary securities.

Proprietary researches and surveys we have conducted

Small Business Loans Australia is the PULSE of small business topics.
We create surveys and do in-depth researches to support the voice of SEMs across Australia.