Best Business Loans in Sydney




Sydney Small Business Loans: Your Options Explained

You’ll find that a number of Australia’s most established online business lenders are based out of Sydney. Prospa, which has received over 7,000 client reviews and a review score of 4.9 / 5, has provided short term business loans in Sydney since it launched its first office in Sydney a decade ago. The global lender Capify holds an Australian office in Parramatta and offers business finance throughout Sydney, including; Smithfield, Camden, Brookvale, Parramatta, Windsor, Camden, Sydney CBD and Liverpool. Whilst GetCapital, which has the widest variety of options for business finance in Sydney, is based out of Walker Street in North Sydney.

It’s not essential for an online lender offering business loans in Sydney to be based out of Sydney – after all the whole process from applying for and disbursing of the business loan is done online – but for those who would prefer a more personal touch, there are plenty of options available from local providers of short term business loans in Sydney. After such a heavy period of disruption and change to business processes, SMEs might see the value in being able to meet with a lending expert face-to-face in order to discuss their individual requirements for business finance Sydney.

Unsecured Business Loans Sydney vs Caveat Loans Sydney 

Unsecured Business Loans Sydney 

Unsecured business loans in Sydney (loans that require no business asset to be used as collateral in the lending process) are available to SMEs from pretty much any industry and the loan proceeds can be used for virtually all business expenses. Unsecured business loans in Sydney are generally available up to the value of $100,000 although this varies from lender-to-lender. Capify issues some of the highest value unsecured business loans (up to $300,000) but a personal guarantee from a business director is required and they are personally liable to repay the loan if your business fails. Each business lender will set out its own lending terms so it’s worth checking these before you apply. See our full selection of lender reviews for the best unsecured business loans and their individual lending terms.

Banks like NAB offer unsecured business loans up to $250,000 but be prepared to provide extensive business documentation, including:

  • A copy of your trust deeds
  • ATO Online Services Reports 
  • Personal identification
  • Bank statements 
  • Transaction lists 
  • Profit and loss reports
  • Balance sheet

The approval rate with banks is lower than online lenders for unsecured business loans.

Secured Loans / Caveat Loans Sydney

Business finance over $100,000 will generally require an asset to be used to secure the loan. This could be equipment that you’re looking to buy, a business vehicle, or in the case of a caveat loan, a property that you own. You’ll find that the very same online lenders who provide unsecured business loans in Sydney also provide secured business loans. GetCapital offers a mix of both unsecured and secured business finance options in Sydney including a line of credit, term loans and asset finance (vehicle, fitout and equipment).

Caveat loans, which are short-term business loans secured against a property that you own, can be a good option if your business struggles to attain unsecured financing. Secured business loans are easier to gain approval.

Businesses are usually eligible for caveat loans up to 70-90% of the value of the property which is acting as security, though some lenders will issue caveat loans in Sydney up to 100% of the value of the property. Max Funding offers caveat loans in Sydney from 1.50% per month and businesses can borrow up to 100% of the property value.

Secured loans are readily available for Sydney-based SMEs from both banks and online fintech lenders. Banks tend to take a number of months to process a secured loan but you should get a better rate than with a fast-approving online lender.

Commercial Property Loans Sydney

Commercial property loans in Sydney will provide your business the finance it needs to purchase a business property. Just like residential mortgages, you can opt for either a fixed or variable rate commercial property loan in Sydney.

Funds can be used to to finance the purchase of a wide range of commercial properties, including:

  • Restaurants and pubs
  • Retail outlets
  • Warehouses
  • Offices
  • Shopping centres
  • Factories
  • Hotels/Resorts

More about commercial construction loans here.

Business Finance Brokers Sydney

Business finance brokers have been an ever present in the Sydney commercial loans space, many of them operating long before the rise of Fintechs and online business lenders.

Business finance brokers in Sydney act as a go-between for businesses who are seeking to raise finance and commercial lenders. They arrange the business loan from start to finish and usually charge a fee from the borrower, and in some cases, are also paid a commission by the lender.

Business Finance Brokers in Sydney include:

  • GCC (Global Commercial Capital) – With a panel of over 450 lenders, GCC has originated over $10 billion in commercial loans for its clients. GCC is based in the central business district of Sydney.
  • Centrepoint Finance – A financial group established in 1982, Centrepoint helps thousands of businesses raise capital every year. As a business loans broker in Sydney it has a dedicated Sydney-based team operating from its local office.
  • JEM Finance – Launched by a director with over 20 years of experience in the finance industry, namely credit risk, the JEM finance group specialises in hospitality finance. 

A Unique & Free Alternative to Business Finance Brokers in Sydney

In the past there were a lot of benefits that only a business finance broker in Sydney could provide. However, recent tech developments have meant you can enjoy many of the same benefits by using the free services of a business loan marketplace. These new fintech’s use algorithms and their own proprietary lending tech platforms to do a lot of the work that an individual acting as a broker would do. By submitting just a few basic details about your business and the type of business finance in Sydney it is you’re looking 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.


Sydney Business Loans Statistics

Unsurprisingly, Sydney and New South Wales is home to the largest proportion of SMEs in Australia. Based on data by the Australian Bureau for Statistics, New South Wales had 817,648 businesses in June 2021 and by June 2022 this rose to 862,769. By June 2022, central Sydney was home to 77,587 businesses, a 5.1% increase over the financial year. The majority of central Sydney businesses operate in professional, scientific and technical services.

When selecting a lender from Sydney or New South Wales, there are no specific benefits to working with a locally-based finance provider. SMEs are better off looking at lenders that have demonstrated an ability to lend to your industry and businesses of a similar profile to yours.

Other important factors remain like how favourable the lending terms and the interest rates are.

If there’s a specific type of finance you need, it’s best to find a niche lender that specifically offers solutions in this area.

Coffee shops, restaurants and retail businesses seeking to launch in Sydney can see our guide to fit out finance.

If you’re looking for business finance in Sydney to purchase new or used equipment then see our guide to equipment finance. If you need to purchase a company vehicle including cars, vans or trucks, see our guide to business vehicle finance.

If you’re looking to acquire a new business in Sydney, look at the lenders that specifically offer business purchase loans

If you’re considering a business loan to repay tax debt, then be sure to apply with a lender that is happy to provide business tax debt loans.

Final Say – Small Business Loans in Sydney

Commercial loans in Sydney aren’t just issued by lenders based out of Sydney. There are a whole host of online lenders throughout Australia that offer short term business loans in Sydney that can help Sydney-based businesses grow. With the entire business loan process now done online there is no specific requirement to choose a broker or lender that operates in your local city. That’s not to say there aren’t any business lenders operating out of Sydney though – most of Australia’s major business lenders operate from and issue small business loans in Sydney. 

Additional localised guides:

Business Loans in Melbourne / Victoria

Business Loans & Finance NSW

Business Loans & Finance Queensland / Brisbane