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Business Loans
Compare business loans from a range of flexible lenders across Australia all in one place with Savvy.
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The features and benefits of business loans
Borrow up to $500,000
Business financing in Australia is versatile and can be taken out for small or large amounts, from as little as $5,000 all the way up to $500,000 with some lenders.
Competitive interest rates
Thanks to a highly competitive market, you can benefit from lenders offering affordable interest rates and fees on their business loans to help you reduce the cost of financing.
Repay over three months to five years
Whether you need a short-term injection of funds or a more significant investment to be repaid over a longer term, you can structure your loan to suit your repayment needs.
No security required
Crucially, you don’t need to worry about putting any personal or business assets up as collateral for your loan, as the lenders we work with offer unsecured financing.
Fast approvals and funding
You can secure the funds you need quickly, with easy online applications and money transferred in as soon as the same day you apply.
Free early repayments available
You’ll be able to compare business loan options without any penalties for completing your repayments ahead of schedule, enabling you to save on interest and fees.
100% online
The entire process is conducted over the internet, so you won’t need to worry about messy paperwork or in-office visits to your lender as part of receiving your funds.
Use it however you like
Whether you need money to boost cashflow, help pay for your employees’ salaries or buy expensive equipment, a business loan can be used for just about any commercial purpose.
Types of business loan
The most common type of business finance, unsecured loans enable businesses to access the funds they need without attaching an asset to the loan as security. Some lenders may allow you to borrow up to $500,000 and, because there's no collateral, offer same-day approval.
If your business already owns valuable assets, such as property or expensive equipment, you may choose a secured business loan instead. These loans may increase your borrowing power beyond what an unsecured loan can offer and, crucially, typically come with lower interest rates.
Business loans don't always have to be worth hundreds of thousands. If you're operating a small business and need a boost to help you keep on top of your expenses or expand your company, you may be able to take out a loan starting from as little as $5,000 and unlock further capital.
Just because you don't have all the required documents for a standard business loan doesn't mean you're out of options. Low doc finance enables you to use alternative documentation, such as other business financials, in the application process to access the funds you need.
A commercial line of credit allows you to draw from your loan account whenever your business needs access to their funds, instead of managing a lump sum and repaying it like a regular loan. This can add flexibility to your finance arrangement, providing money when you need it.
Invoice finance presents another option to business operators looking to free up cash through outstanding invoices yet to be paid by their customers. Your invoice finance can either be invoice discounting or factoring, which present different options when it comes to your invoices.
A common reason for seeking out a loan is to purchase commercial equipment. You can do this either with an unsecured arrangement or one with the equipment itself as collateral, with the latter potentially increasing your borrowing power and lowering your interest rate.
With this finance, when your business purchases product, your supplier provides an invoice which you send to your financier and pledge to repay by a set date. From there, your supplier sells the invoice to your financier at a discounted rate, while you repay the full amount to your financier.
Under an inventory finance agreement, your lender pays your supplier directly for inventory, which allows it to be signed off and sent to you. From there, you can pay off your debt within a pre-determined period to your lender, which may be longer than the regular debtor period.
An overdraft facility is attached to an existing financial account belonging to your business, such as a transaction or savings account, and enables you to borrow up to a set limit after the account’s balance reaches zero. These overdrafts are repaid with interest, but only on what you use.
You may simply be in a position where your business needs a boost to its cash flow. If this is the case, there’s a range of stop-gap solutions which may be suitable for your situation, from standard unsecured loans to specialist cash flow loans, invoice finance or even an overdraft.
Why compare business loans through Savvy?
100% free service
It won't cost you a cent to compare a range of business loans through Savvy, enabling you to come back at any time.
Reputable lending partners
You can compare business loan offers through a range of trusted Australian lenders, giving you more confidence in the process.
Online comparison process
You can fill out our simple online form to generate business finance quotes tailored to your business' needs in minutes.
How to compare business loans
Interest rates
The interest that you’ll pay on your business loan will play a major role in forming the overall cost of financing. As such, you should always keep them front of mind when comparing different offers. For example, a $50,000 business loan over three years at a rate of 10% p.a. would cost you almost $850 more in interest overall than the same loan at 9% p.a. A low-rate business loan could save you thousands of dollars overall. You can make use of our business loan repayment calculator to see how much you could save.
Fees
Fees can also add up over time and end up costing you a great deal of money on your loan. These can include charges such as establishment or application fees (up to 3% of your loan amount) or annual maintenance fees. Prices for these vary between lenders, so you should look to prioritise low-fee loans wherever possible to help you save more.
Repayment flexibility
Another charge you should look to avoid is an early repayment fee. Some lenders will penalise you for paying out your loan ahead of schedule, which could partially or wholly negate the benefit of doing so in the first place. Giving yourself the option to pay out your loan early provides an avenue for you to take advantage of an improved financial situation and pay above the minimum, reducing your loan amount more quickly and your interest overall.
Borrowing range
Not all lenders will offer the full range of loan amounts listed above, so you should always check to make sure the figure you’re looking to take out is offered by your lender. For example, some lenders will enforce a higher minimum amount of $10,000, which might be more than you need or can afford, while others cap their loans at $250,000. It’s worth putting the effort in to find a lender that offers the amount you need.
Term length
Similarly, many lenders will implement more restrictive loan terms for their deals. You might only want to take out a three- to six-month loan, which will rule out lenders who set their minimum length at one year. Others only offer loans up to two years, which might not accommodate your business’ needs when it comes to structuring their repayments.
Applying for a business loan
Review your lender’s criteria
Make sure you’re eligible to borrow. You’ll need to have been trading for at least six months, with some requiring a minimum monthly turnover of $5,000.
Gather your documents
Different lenders will require different documents, but you’ll need your ABN, GST, personal identification and select business financials for larger loans.
Apply and sign your contract
You can fill out your application form and submit it with your documents for a fast outcome and, if successful, your lender will send you a contract to sign.
Funds in your account
Once you’ve returned your contract, your lender can release the funds directly to your listed bank account, after which you can use them how you wish.
Common queries about business loans
No – lenders won’t require you to make a deposit at the beginning of your business loan. You’ll be able to access up to and beyond 100% of the funds you need to cover expenses. However, contributing a portion of your savings towards the purchase or expenses you’re looking to cover will reduce the loan amount required and potentially save you hundreds on interest (if not more).
Yes – there are lenders in the market who can help new businesses who are just starting out access financing to enable them to get off the ground. However, because these are considered riskier than standard business loans, you’re likely to attract a higher interest rate and lower borrowing range of around $30,000 on a small business startup loan. The credit history of any previous businesses and your company’s director/s will be taken into consideration when assessing a startup loan application, as well as any transferrable skills you have as an owner.
Although you won’t need to supply recent business financials in many cases, you may be required to do so for larger loans. Some of these documents include:
- Balance sheets
- Profit and loss statements
- Bank statements
- ATO Integrated Client Account (ICA) information
- Tax returns
- Accounts receivable and accounts payable
- Business plan
Yes – there are many grants available both at the federal and state government level for eligible small businesses and startups. One such program is the New Business Assistance Scheme through NEIS, which helps eligible applicants who are working 25 hours per week or less start up their business idea with a weekly allowance equivalent to JobSeeker payments for single people with no children. Other federal grants include the CSIRO Kick-Start program and Regional Development Australia. Check both your state and federal government websites to find out if you’re eligible for assistance.
Lines of credit are preferred by many borrowers thanks to their flexibility. They function in the same way as a credit card, enabling you to draw down funds up to a set amount established at the beginning of your agreement. You only pay interest on the amount outstanding on your line and can either expire after a set period or be revolving. These typically come with higher rates than loans, though, and you’ll be charged fees even if you don’t withdraw in a given month.
In most cases, business loans come with fixed term interest rates. These are often preferred by borrowers on longer-term loans who believe interest rates will rise throughout their repayment period, with the other key benefit being that they bring stability and consistency to your payments. Variable rates are occasionally offered, which enable you to take advantage of potential decreases in the market, but you’ll be equally susceptible to rate increases.
A personal guarantee is a guarantee made by you to fulfil the legal obligations taken on by your business in agreeing to your loan. If it becomes unable to sustain the financial obligation, your lender will pursue you and your personal assets to ensure the remaining debt is repaid. Some lenders will require personal guarantees from a business’ director/s as part of the application, but this isn’t always the case.
Still looking for the right finance for your business?
Read up on a range of loans suited to different businesses with us to help you work out what your next step might be.