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RATED:
| 🗺️ Products | Business Loans |
| 💰Funding Amount | $20,000 to $500,000 |
| 📊 Loan Terms | 6 to 24 Months |
| 💰 Min. Trading Period | 24 Months |
| 💰 Min. Trading Turnover | $500,000 per annum |
| 🛍️ Unsecured/Secured | Unsecured if < $250,000 |
| 💳 Funding Speed | 24-72 hours |
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| Loan Products | Short-term business loan |
|---|---|
| Loan Terms & Funding Size | |
| 💰 Loan Amount | $20,000 to $500,000 |
| ⏳ Loan Length | 6 to 24 months |
| 📆Payment schedule | Weekly, fortnightly or monthly |
| 💳 Line of Credit Option? | ❌ |
| Loan Costs | |
| 💸Fees (exc. interest) | Origination fees - 1.5% (6 months), 2.25% (12 months), 2.5% (18 months), 2.75% (24 months) |
| ﹪Interest Rate Type | Fixed fee (inclusive of interest and other charges) in equal installments |
| 🔓 Unsecured Loans? | ✔️ (Directors guarantee required) If > $250,000 then security deed required |
| 👍 Early Repayment | ✔️ (Discount on fixed fee) |
| Loan Qualification | |
| 🎓 Qualification Basics | ABN or ACN Australia citizen Permanent resident |
| 🛍️ Min. Trading Qualification | 24 Months, 3 months of bank statements |
| 📅 Min. Turnover Qualification | $500,000 per annum |
| 🗎 Low Doc Loans | ❌ |
| 😕 Bad Credit OK? | Veda Score greater than 550 |
| Approval & Funding Speed | |
| 🏍 Fast Online Application | Medium |
| 💨 Funding Speed | Within 24 hours of approval |
Banjo Pros and Cons
Pros
Cons
Products – Banjo business loans available
Only one loan product is available with Banjo loans, which the business lender call their ‘Short-term business loan’. Other lenders may call this type of loan an unsecured business loan, fast business loan, small business loan or working capital loan. The main feature of these kinds of loans is that you do not need to provide collateral with the loan, which means the lender can approve the loan quickly so you can get your business finance fast.
- Short-term business loans
Short-term business loan eligibility / qualification:
Minimum Time Business
2 Years
Minimum Turnover
$500,000 Per Year
Credit History
Credit Score of 550 for Directors (Equifax)
Other
ABN or ACN
3 Months Bank Statements
Unsecured business loan funding size and loan terms
Loan Amount
$20,000 to $500,000
Term Length
6, 12, 18, 24 Months Fixed Terms
Payment Schedule
Weekly, Fortnightly Monthly
Low Doc Loans
No
Unsecured/
Secured
Security deed if > $250,000
Which term length is for you
- 6 months
Perfect for short term working capital needs such as wages,
ATO payments, stock purchases - 12 months
Ideal for medium-term capital needs like marketing campaigns refurbishment of workplaces, etc - 18 months
Consider purchases, project requirements, etc - 24 months
The term option for longer-term cashflow considerations
Unsecured business loan costs and fees
Origination Fee
1.5% for 6 Months
2.25% for 12 Months
2.5% for 18 Months
2.75 For 24 Months
Interest Rate
Fixed fee (principal + interest) inclusive of all charges
in equal instalments
3-4 Month Interest-only period available
Other Costs
Security registration
No Hidden fees
✓
Early Payment Permitted
Discount available
There are two simple standard costs when taking a loan with Banjo Loans, these are obligation fees and fixed fees.
When taking out a loan with Banjo, you will need to pay an origination fee, This will vary depending on the length of the loan, loan of 6 months will be 1.5% while loans of 24 months will be 2.75%. Banjo subtract this fee from the total loan amount you borrow, which means you will receive less capital than you request. Sometimes called an establishment or commitment fee, lender charge this as the cost to verify your application and business details.
Banjo charge fixed fees (sometimes called interest expense) rather than variable interest rates, and this fee is inclusive of all costs. Fixed fee means you will pay the same amount each payment cycle, this means you can plan all your loan expenses in advance. The fees this SME lender charges will depend on the business circumstances and will depend on factors such as the business’s credit history, the number of funds the business requires, and the cash flow the business has. Businesses with a good credit history and a stable history of turnover should expect better rates.
Fixed cost is good for transparency and this lender does not have any hidden fees however there are some minor details to be aware of.
- You will need to pay a fee if you repay your loan early, this comes in the form of a discount on the costs you would otherwise pay
- In some circumstance, you may require collateral (usually loans above $250,000)
- Dishonour or late fees and default costs, these are fees you should expect from all lenders.
- Flexi Working Capital – interest expense only repayment period
- Flexi Working Capital 12 months
The Ability to select an interest expense only repayment period to align with your annual business cashflow cycle - Flexi Working Capital 16 months
The ability to select an Interest Expense only repayment period to align with your business cashflow cycle
Banjo loans honesty and transparency
When taking a loan with Banjo, you can expect the lender to be open and honest with the details of your loan. Before signing a loan agreement, you can expect a statement summarising in detail all your costs. This will include the following metrics:
- Total Cost of Credit
- Simple Annual Interest Rate
- Total Interest Percentage
- Annual Percentage Rate
Of these metrics the most important is:
- Total Cost of Credit, which is fixed fees + origination fees or how much you will actually pay (if you pay normal costs on time)
- Annual Percentage Rate / Average monthly payment which the total amount you can expect to pay each payment schedule
Some lenders quote simple annual interest which does not show your true final costs.
Ease of application and application process
Ease of Application
As part of the application process, you will need to provide the following:
- The length of the loan – 6, 12, 18, 24 months
- The interest-free period you require
- The amount you would like to borrow
- Preferred payment frequency
- What you will use the loan for
- How long the business has been trading for
- Expected revenue for the next 12 months
- Number of employees
- The proportion of revenue from top 4 customers
- Late payment history
- All business bank accounts (and they must allow direct debit)
Once you provide all the above information, Banjo will ask you to upload business financial statements as a PDF, excel or word document and link your Xero or MYOB accounting products.
Personal detail about the directors will also need to be provided so Banjo loan can perform a credit check.
Funding speed
Online Application
10-15 Minutes
Approval
Same day
Funding
Within 24-72 hours of approval
Application takes 10-15 minutes and approval can be done in hours.
Your bank account should receive funding in the next 24 hours but can take to 72 hours.
What can you use the loan for?
Banjo Loans Review – Discounts
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Banjo Loans review Bottom line – Conclusions about Banjo
Banjo Small Business Loan Fund ABN 32 713 685 984 (AFSL 468033)
