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Best Small Business Loans Melbourne
Melbourne Small Business Loans: Your Options Explained
Melbourne is home to an extensive mix of banks, online lenders and business loan brokers. How fast you need finance, the type of finance you’re seeking and the profile of your business will all influence your best option for receiving commercial loans in Melbourne.
Learn about each of the options for attaining a small business loan in Victoria here. Plus, consider a faster and easier way to receive business finance through an online lending marketplace that does the legwork for you.
Mainstream Aussie Banks in Victoria
For most business owners, their first thought when it comes to receiving business finance in Melbourne is to approach a bank. All of the usual major Australian banks – ANZ, Commonwealth, NAB and Westpac – are of course available in Melbourne and remain a popular option for small business loans.
Bank of Melbourne business loans are another very popular option too, providing SME finance from $20k through to $3m, across a variety of different financing solutions.
You should be able to get a better rate through a bank than you would an online lender but be prepared to provide loan security and go through a thorough review of your company financials (usually at least 2-3 years of business accounts are required). This often takes a long time too. Weigh up the factors which are most important to you and learn more about the difference between business loans from banks vs business loans from online lenders.
Melbourne is home to three popular challenger fintechs – Bizcap, Moula & Judo Bank. You’ll find all three have an office in Melbourne in which they provide small business loans. Though the whole point is that these tech firms provide online loans, with no need to visit their offices. None of these firms make it into our top 10 online lenders in Australia (all of which can provide business loans in Melbourne too).
Bizcap provides business loans from $5K to $2M (unsecured loans up to $500K) for a period up to 12 months. Bizcap pride themselves on being “the most open-minded lender in the market” and they can often help, even if you’ve previously been rejected for finance elsewhere or have a poor credit history.
Moula has a slick and easy to use site that promises business funding fast but the fact it’s limited to a 12 – 24 month borrowing term means it automatically excludes businesses seeking short term business loans for under a year.
Applications with Judo Bank can take a little longer and crucially, funding is only for business loans of $250,000 and above – thus neglecting a large portion of Australian SMEs too.
All three lenders do a great job in their niche but competition is high in Australia and none of them make it into our top-10 small business loan providers.
Business Finance Brokers Melbourne
Business finance brokers in Melbourne should have a clear picture of the current landscape for business loans in Melbourne and tailor their recommendations based on the requirements of your business. Whether it’s a business acquisition, a franchise loan or an unsecured business loan in Melbourne you’re after, speaking with a local Melbourne-based commercial loan broker can be a good idea.
Business finance brokers in Melbourne play an important role as the go-between for businesses who are seeking finance and commercial lenders who are willing to provide it. They should handle your business loan application from start to finish and knowledgeable finance brokers in Melbourne should be able to save you time and even money by pairing you with a lender that’s a good fit for your business. Business loan brokers in Melbourne will usually charge a fee from the borrower, and in some cases, are also paid a commission by the lender.
Popular Business Loan Brokers in Melbourne:
- Opulent Finance – With a team full of industry expertise, based out of Mt Waverley, Melbourne, Opulent Finance has a proven track record for securing targeted commercial finance solutions at competitive pricing.
- Aspirus Financial Services – Based in the heart of Melbourne and having been in the industry for decades, the experience and industry knowledge at Aspirus helps them understand how banks and dedicated commercial lenders work – ensuring the most optimal results for borrowers.
- Grange Finance – Grange has access to a variety of business lenders for low doc loans, investment loans and many different commercial loans in Melbourne.
A Unique & Free-to-use Alternative to Business Loan Brokers in Melbourne
Traditionally, there have been a lot of benefits that only a business finance broker in Melbourne would have been able to provide. This isn’t the case anymore – following tech innovations you can now enjoy many of the same benefits of a business loan broker in Melbourne by using the free services of a business loan marketplace.
A business loan marketplace will use algorithms and their own proprietary lending tech platforms to do a lot of the work that an individual acting as a commercial broker would do. Once you’ve submitted a few basic details about your business and the type of business finance in Melbourne you’re searching for, a business loan marketplace should be able to automatically pair you with lenders that offer the highest chances of approval and lending solutions that suit your business needs.
Unsecured Business Loans in Melbourne
The rise of online business lenders providing unsecured business loans has been great for the 6,000 businesses of Melbourne, making it easier to access funding without the need to provide security. No longer are businesses expected to wait weeks or even months for a response from a bank. With a typical online business lender, applications can be completed in a matter of minutes, they’re usually non-committal and you should receive a yes/no response on the same day you apply.
In addition to the big four Aussie banks who retain a presence in Melbourne and Bank of Melbourne business loans, there are only a handful of Melbourne-based online lenders offering unsecured business loans in Melbourne. However, that’s not to say it isn’t easily possible to access unsecured business loans in Melbourne – it’s just that most online business lenders have simply opted for a Sydney HQ. The providers of the best unsecured business loans we review here on SmallBusinessLoansAustralia operate across all of Australia and of course offer unsecured business loans in Melbourne.
Commercial Property Loan Melbourne
Commercial property loans in Melbourne (or commercial construction loans) can provide the much needed finance to purchase or build a business property. As with residential mortgages, you can opt for either a fixed or variable rate commercial property loan in Melbourne.
Commercial property loans can be used to to finance the purchase of a wide range of commercial properties in Melbourne, including:
- Retail stores
- Restaurants and pubs
- Hospitality venues
- Office blocks
Victoria Business Loans Statistics
According to the Australian Bureau for Statistics, there was a 10.9% growth in the number of businesses in Victoria in 2021-22, the largest percentage increase of any territory in Australia. Taking the total to 726,839 businesses, with roughly 600,000 of these deemed to be small businesses (under 20 staff). For one reason or another, most of these businesses will seek a business loan in Victoria. It could be to fast-track growth, smooth over cash flow shortages or invest in key technology or equipment to drive the business forward. Victoria is also home to a number of rural businesses and is Australia’s largest producer of food and fibre products, making up over half of Victoria’s total product exports.
On the whole, we recommend the same providers for small business loans in Victoria as we do Melbourne. The most important aspects of selecting a lender remain things like the loan terms, interest rate on offer and ensuring you can meet the affordability requirements of the loan. And of course only opting for well reviewed, regulated and reputable lenders.
By broadening the net to banks beyond just the Bank of Melbourne and to non-bank lenders based outside of just Victoria, it’s easier to find lenders that are a better match for your requirements. And, as a rural business in Victoria, it may actually be preferable to work with a lender which offers good customer service online or over the phone. A requirement to visit a lender in-branch in Melbourne will just waste time.
It’s more preferable to look for lenders that have a strong track record of offering finance to your sector or for the purposes you’re seeking finance.
Agricultural businesses seeking a small business loan in Victoria can view our guide to agricultural business loans.
Cafes, restaurants and retail businesses seeking Victoria business loans can see our guide to fit out finance.
Small Business Loans in Melbourne and Victoria – Final Take
Business owners have more options for small business loans in Melbourne and throughout Victoria than ever before. The higher level of competition should bring benefits for borrowers such as reduced loan costs and an improved level of service. Commercial loans in Melbourne aren’t just issued by lenders based out of Melbourne. Three of the most well known fintech lenders to have launched in recent years have opted to base themselves here but by our count, there are over 50 online lenders throughout Australia that offer small business loans in Melbourne and small business loans throughout Victoria – providing a mixture of secured and unsecured business loan solutions. Rural businesses seeking Victoria business loans are likely to benefit even more from working with a national lender renowned for providing good service online or over the phone.
Additional localised guides: