Working Capital Finance: How to find fast short term capital loans?

If you are an Australian small business who is needing a short-term working capital loan on an instant basis, you have come to the right place. Small business loans Australia lists the best working capital lenders. These are respectable lenders with great reputation across Australia who are able to approve your loan within hours, and get money in the bank the next day. Some of these working capital financing lenders are more rigid in their requirements and some of them are oriented towards small business with bad credit – just be sure to read through out descriptions and thorough reviews!

Working Capital Loans – Base Figures

Loan TypeSecuritiesTermsAvg Loan SizeEstimated Interest Rate
Working Capital LoanUnsecured1-24 months$35,0001.75% p/m

Best Working Capital Finance Options

#1 Lender in Australia Best Rated on Small Business Loans Australia

Est. 2011

Loans size & Terms

$5,000 to $300,000

Secured and Unsecured Loans

Prospa Business Loans Review
  • Funding: $5,000 to $300,000
  • Recepient of multiple industry awards
  • Funding granted within 48h
  • 4.9 / 5 rating on TrustPilot
  • 20,000+ Australian Businesses Funded to date
  • ASX Traded Company
  • Clear Terms, Conditions and Repayments
  • Excellent website and onboarding
  • Had low approval rate between May-Aug 2020 due to COVID
#2 The Industry Veteran

Est. 2002

Loans size & Terms

$5,000 to $300,000

Unsecured Loans

Capify Business Funding Review
  • Fewest documents required for sign up
  • Industry veteran for 17 years
  • the FIRST Australian online business lender
  • 99% positive client reviews
  • Multiple banking awards
  • More than $500,000,000 in funding since inception
  • Global brand
  • Min monthly turnover $10,000
  • Smaller scale than Prospa
  • 3% origination fee
#3 Diverse Solutions for Established Businesses

Est. 2013

Loans size & Terms

$25,000 to $1,000,000

Secured and Unsecured Loans

GetCapital Review
  • Most bespoke financing solution
  • Term Loans available
  • Line of Credit available
  • Business Overdraft available(with illion Data Solutions)
  • Equipment Financing available
  • Deloitte's 2018 Tech Award
  • No early repayment fees
  • No drawdown fees
  • Low annual fee
  • Min 9 months in business
  • Min $100,000 annual turnover
#4 Bad Credit Businesses Specialist

Est. 2018

Loans size & Terms

$5,000 to $200,000

Unsecured Financing

Lumi Business Finance Review
  • Newer Businesses Accepted
  • Bad Credit Borrowers Welcomed
  • 2 Hour Approval
  • 93% Positive Reviews
  • Potentially higher interest rate
  • Smaller and less experienced lender than our top choices
#5 The Global Mega-Brand

Est. 2015

Loans size & Terms

$5,000 to $250,000

Secured and Unsecured Loans

OnDeck Review
  • Great reputation in Australia and globally
  • 95% satisfaction from clients in Australia
  • Annual interest rate starts at 9.99%
  • Origination fee of 2.5% (lower than most lenders)
  • Traded in the NYSE
  • Application in 10 minutes
  • One of the best known lenders in the world
  • Not headquartered in Australia
  • Min $100,000 annual turnover

Find The Right Option for You Online

Before you rush to apply with multiple companies, you may want to try Lending Express which specialize in small business working capital loans. Their super easy system make it easier to find the right match for you within minutes.

Read Our Become Business Funding Review

Are These Short-Term Working Capital Loans Anything Like PayPal Working Capital?

Paypal working capital is a very popular solution for sellers across the world similarly to Amazon Lending. What they can do is essentially enable individuals and small businesses to borrow a short-term amount based on the average income they had in the recent period. The amount businesses can borrow under PayPal working capital is very limited, up to 35% of your PayPal sale over the past year (up to $200,000 if you are selling for $50,000 per month). The interest rate you would be paying for your PayPal Working Capital financing is between 15%-30%, annualized.

Our recommended online lenders are very much the same. They can provide quick working capital finance directly into your bank account of an amount which is probably between 30 and 50 per cent of your sales last year, with relatively high interest rates. The biggest difference between the two options is as follows:

  • Australian small business lenders are a little more flexible in terms of the financing they can provide and the repayment schedule. They supply longer-term loans and short-term loans that PayPal Working Capital.
  • With Australian small business lenders you are not tied to the amount of money you receive on Paypal. If you are selling through other payment gateways (and you probably are because Paypal is relatively expensive) then the PayPal working capital alternatives can take the proceedings into account while Paypal won’t.
  • Some of the companies offering capital finance in Australia offer higher cap on the amount of money you can borrow through them.
  • When you take capital financing from an Australian lender you are not borrowing money from an international conglomerate, you’re borrowing money from either an Australia-based company (in most instances), or an American lender with a subsidiary in Australia which includes local employees in local offices.
  • Invoice factoring solutions essentially lend you the money against unpaid invoices.
  • With a business lender, you could use the capital financing for other purposes such as equipment financing or fit out. The money is not really designated for a specific purpose!


Sources of Working Capital Loans in Australia

We have listed what we believe are the leading working capital loan providers* in Australia, but this is obviously not your only option. “Working Capital Loan” is a very loose definition that relates to short-term lending for the day to day operations, but it’s something that banks can provide (although slower than online lenders). Additionally you could always sell debt notes to investors, sell a portion of your equity to angels/investors to raise the capital quickly and use it for whichever purpose you need, but we feel our sources of working capital financing in Australia are a good place to start in.

* Our featured online lender also offer other types of loans such as equipment loans.

When Does it Make Sense to Borrow Through Relatively High Interest Capital Financing

Short-term high-interest capital finance is not for every business! it’s for a business that has a very clear vision of what’s ahead in terms of earnings and allocation of funds and has high certainty the amount can be repaid! Small businesses borrowing more than they can afford to repay are going to face a very heavy burden in the form of accumulated high-to-begin with repayments that could very well choke their cash-flows.