Unsecured business loans

Grow your business with an unsecured business loan

Competitive unsecured business finance

Flexible finance for your modern business

Got big plans? Get flexible funding

When you need to take your business to the next level, be it with more inventory, hiring staff, or taking on new competitors, it’s likely (and safer) to use long-term liabilities to achieve long-term goals. Amortising (paying off in instalments) your liabilities with an unsecured business loan can free up cash flow for the day-to-day and help your business excel. With a specialised business consultant helping you through the process, you and your business can find flexible funding from over 25 of Australia’s leading business lenders without a security or existing assets.

Save time and money

When it comes to unsecured loans for small business, banks often say no; or they make you jump through hoop after hoop to get approval. With a Savvy business consultant on your side, you can gain approval faster. This means you can pounce on a new opportunity or get cash flowing immediately.

We offer overdrafts, lines of credit, cash flow loans, invoice financing, traditional unsecured business loans, and much more. In many cases, your business loan can be approved in as little as 24 hours.

Get to the next level with unsecured business loans

We use our extensive experience in commercial lending to provide tailored financing solutions.

Get answers to your unsecured business loan questions

Find out more about unsecured business loans and products

What is an unsecured business loan?

An unsecured business loan is a type of business loan that does not require a security or collateral. Instead, the cash flow and credit rating of the business is taken into account during your application. An unsecured business loan is a fast and flexible way to gain funding for new inventory, cash flow, or growth.

What is a line of credit?

A line of credit is a standing amount of credit a business can access at a time of their choosing. It is not a loan as there is no fixed term, and a business can draw on the credit or repay the facility at any time.

What is an overdraft?

An overdraft is a type of credit that acts as an extension of your cash – for example, a business can pay from their transaction account even if it does not have a positive balance. The overdraft must be paid back with interest, however.

What is invoice financing?

Invoice financing is a type of cash advance paid by a lender or bank. The lender will pay out most of an outstanding invoice at the time of issue. This prevents businesses waiting for the full amount, which can be as long as 90 days in some cases

What is a factor rate?

A factor rate is a type of interest rate applied to cash advances and other short-term credit products for business. Factor rates are expressed as a decimal. You can figure out the factor rate by dividing the financing cost by the loan amount. A $50,000 cash advance with a factor rate of 1.1 over 12 months will give you a repayment amount of $55,000. These can be complicated – ask your consultant for more information.

I run a seasonal business. Can I apply?

Yes – we provide unsecured business loans to seasonal businesses and can package repayments according to your business needs.

Is a business loan the same as a chattel mortgage?

No – a chattel mortgage is a type of secured loan that uses an asset purchase (car, equipment, etc.) as security.

Can I claim tax back on interest and depreciation?

Yes – business can claim the GST back on purchase price and tax deductions on depreciation and interest payments on loans for equipment and vehicles.

Can I apply with bad credit?

Yes – we work hard to find unsecured business loans for businesses with bad credit. See our bad credit commercial loan for more.

Can you lend to a sole trader?

Yes – provided they have an active ABN or ACN. Individuals will need to apply for a personal loan instead.

Is my information secure?

Yes – we follow strict privacy guidelines and use only high-encryption servers.

Your helpful guides to unsecured business finance

Know even more with our guides to unsecured business finance

The two kinds of invoice financing

Invoice financing is a flexible funding option available to business. A bank or lender pays out close to the full amount due on an invoice, which means a business has working capital instantly instead of waiting for payment from a third party (which can extend out to 90 days or more in some cases.) Lenders can pay on a contract basis or “pay as you go.” Some contracts may lock you in for 12 or more months. Other “pay as you go” providers may take a greater percentage of the final amount. Either way, they do help cash flow faster.

Why borrow? Follow the “OPM” rule

If your business is starting out or looking to expand, you should refrain from using your own short-term profits to buy long-term assets. According to the ACCC, this is the most common reason for small business failure. The best way to increase your own profits is to use the “OPM” rule – “other people’s money.” Getting investors in the private sector is difficult, and you may have to sell shares of your business to attract the funding. A loan does not require you to give up shares, and you pay off a loan over time at a fixed cost, that also lets you plan ahead.

What do I need to be approved?

We live in a digital age and in many cases, we can use our accounting software such as MYOB, Xero, and others to gain approval for unsecured business loans. If your business doesn’t use cloud accounting, you may have to submit financial statements, balance sheets, or profit and loss statements the old-fashioned way. In some cases, unsecured business loan products are restricted to new businesses. Businesses that are fewer than six months old will find it hard to gain approval for business loans and lines of credit. New businesses may be eligible for chattel mortgages or hire purchases, as they are a type of secured loan.

Overdrafts, lines of credit, and more

To free up working capital to ride out short-term cash flow problems or seize flash opportunities, a business can apply for overdrafts or lines of credit. An overdraft is attached to your business transaction account. The overdraft comes into effect if your balance goes into negatives. This way you can keep spending to cover wages, sudden expenses, etc. A line of credit is not linked to your account, and can be accessed at any time. Both require your business to pay interest on your borrowed amounts, however.