Banjo Loans Review (2021)

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RATED:

43.3
🗺️ ProductsBusiness Loans
💰Funding Amount$20,000 to $500,000
📊 Loan Terms6 to 24 Months
💰 Min. Trading Period24 Months
💰 Min. Trading Turnover$500,000 per annum
🛍️ Unsecured/Secured Unsecured if < $250,000
💳 Funding Speed24-72 hours

Banjo Logo with Banjo Review words under it

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Loan ProductsShort-term business loan
Loan Terms & Funding Size
💰 Loan Amount$20,000 to $500,000
⏳ Loan Length6 to 24 months
📆Payment scheduleWeekly, 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 TypeFixed 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 BasicsABN or ACN
Australia citizen
Permanent resident
🛍️ Min. Trading Qualification24 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 ApplicationMedium
💨 Funding SpeedWithin 24 hours of approval

Banjo loan has the following features which make them stand out from other online lenders:

Banjo Pros and Cons

Pros

  • Choice of 4 fixed fee loan terms
  • Flexi-Capital interest expense only repayment period
  • Easy Re-borrowing
  • Choice of repayment schedules
  • Better rates for better businesses

Cons

  • Not for startups
  • Minimum 2 years trading history
  • Large minimum annual revenue
  • Collateral for loans over $250,000
  • Early repayment available but with discount

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.

  1. Short-term business loans

Short-term business loan eligibility / qualification:

Minimum Time Business Operating

Minimum Time Business

2 Years

Minimum Turnover

Minimum Turnover

$500,000 Per Year

Credit History

Credit History

Credit Score of 550 for Directors (Equifax)

Other

Other

ABN or ACN
3 Months Bank Statements

Banjo loan requires your business has a trading history of 2 years and $500,000 of annual turnover or $41,666 in monthly turnover. This is higher than many other online lenders, which can require as little as 3 or 6-month trading history and $100,000 of trading annual turnover from small businesses. More stringent lending criteria can reflect the types of customers the SME lenders represents, small businesses or medium businesses using Banjo Loans will usually have revenue up to $5 million, been operating for an average of 10 years and have less than 20 staff.

Your business will require an ABN or ACN as proof you are an Australian business as Banjo don’t give personal loans. Directors will require an Equifax credit score of 550, which is the average score for Australian borrowers with a credit history and means Banjo may not be suitable for business owners with a history of bad credit. Banjo loans require the directors’ credit score as a Director’s guarantee for the loan may need to be provided in certain circumstances such as loans above $250,000.

Unsecured business loan funding size and loan terms

Loan Amount

Loan Amount

$20,000 to $500,000

Term Length

Term Length

6, 12, 18, 24 Months Fixed  Terms

Payment Schedule

Payment Schedule

Weekly, Fortnightly Monthly

Low Doc Loans

Low Doc Loans

No

Unsecured-Secured

Unsecured/
Secured

Security deed if > $250,000

Banjo loans range from $20,000 to $500,000 and you can have as long as 24 months. Shorter loans will come with a higher interest rate but can save you on costs, as long-term loans may accrue more interest costs over the life of the loan. When making payments for the loan, you can choose from a weekly, fortnightly or monthly cycle, whichever best matches your cash flow.

Flexi Payment Options

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

Origination Fee

1.5% for 6 Months
2.25% for 12 Months
2.5% for 18 Months
2.75 For 24 Months

Interest Rate

Interest Rate

Fixed fee (principal + interest) inclusive of all charges
in equal instalments
3-4 Month Interest-only period available

Other Costs

Other Costs

Security registration

No Hidden fees

No Hidden fees

Early Payment Permitted

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

Banjo’s online application is one of the more extensive online application processes of all online Fintech lenders. While you need to provide a high level of detail, the good news is that the application needs little paperwork and Banjo accept electronic signatures. The application will take you 10 to 15 minutes and faster if you have the information you need ready.

You will know within hours how successful your application is. This is because the Banjo loans platform is able to automatically assess most of the business and personal data through credit checks and ID verification. As part of the application, you will need to provide your business ABN and bank account number and link accounting products such as Xero and MYOB; you can also upload from desktop software such as MYOB and Reckon.

Ease of Application

As part of the application process, you will need to provide the following:

  1. The length of the loan – 6, 12, 18, 24 months
  2. The interest-free period you require
  3. The amount you would like to borrow
  4. Preferred payment frequency
  5. What you will use the loan for
  6. How long the business has been trading for
  7. Expected revenue for the next 12 months
  8. Number of employees
  9. The proportion of revenue from top 4 customers
  10. Late payment history
  11. 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

Online Application

10-15 Minutes

Approval

Approval

Same day

Funding

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?

As long as the loan is for a business purpose, there are no restrictions.

Banjo Loans Review – Discounts

If you repay your loan early, then Banjo will provide a discount on the agreed fixed fee.

Banjo Loans Review – Customer Service

Banjo customer service team are based in Australia. The team comprises of staff with banking experience so that the financial services provider can deliver top customer services and support.

Reviews in Trustpilot speak highly of the experience they had with Banjo. Many reviews comment that application to approval is quick and easy and appreciate that the process is done by humans, not automation. This allowed many businesses to get a loan that reflects their circumstances, especially through the difficult time many experienced with the COVID-19 virus. Some reviewers feel Banjo offer the best value product in the SME lending industry.

Banjo Loans Review – Trustpilot

5 star from 284 reviews shows Banjo has a high level of satisfied clients, 96% rate Banjo as excellent and the remaining 4% as great.

Banjo-TrustPilot-1024x159

Banjo Loans review Bottom line – Conclusions about Banjo

Banjo Small Business Loan Fund ABN 32 713 685 984 (AFSL 468033)