Max Funding Review (2021)

Loan Products	Secured small business loans	Secured large business Loans	Unsecured Business Loans
Loan Types	Fast business loans Short-term loans Bad credit loans	Start-up loans/Franchise loans Low doc loans Caveat loans Second mortgage loans Equity business loans Franchise loans	Unsecured term loan
Loan Terms & Funding Size
💰 Loan Amount	$2,000 to $50,000	$3,000 - $1,000,000	$2,000 to $30,000
⏳ Loan Length	1 to 36 months	1 to 36 months	1 to 12 months
📆Payment schedule	Flexible schedule Lump-sum Combination	Flexible schedule Lump-sum Combination	Flexible schedule Lump-sum Combination
💳 Line of Credit Option?	✔️	✔️	✔️
Loan Costs
💸Fees (exc. interest)
﹪Interest Rate Type	From 1.50% per month (simple interest)	From 1.50% per month (simple interest)	From 1.50% per month (simple interest)
🔓 Unsecured Loans?	❌ (Real estate or motor vehicle)	❌ (Real estate or motor vehicle)	✔️
👍 Early Repayment	✔️(No fee or penalty costs)	✔️(No fee or penalty costs)	✔️(No fee or penalty costs)
Loan Qualification
🎓 Qualification Basics			Australian ABN or ACN
🛍️ Min. Trading Qualification			6+ months
📅 Min. Turnover Qualification			$6,000+ a month
🗎 Low Doc Loans	✔️(optional)	✔️(optional)	❌(required)
😕 Bad Credit OK?	✔️	✔️	❌(required)
Approval & Funding Speed
🏍 Fast Online Application	✔️	✔️	✔️
💨 Funding Speed	Preapproval in 5 minutes Approval and funding within 24 hours of approval	Preapproval in 2 hours Approval and funding in 3 to 5 days	Preapproval in 5 minutes Approval and funding within 24 hours of approval
	Visit Max Funding	Visit Max Funding	Visit Max Funding

Bizcap Pros and Cons

Introduction Max Funding

Max Funding’s strong suit is offering secured business loans to small business owners. If your business has property or vehicle assets to use as security, then you can apply for a large range of loans that will meet most business needs. Unsecured loans up to $30,000 are also available and can be a good option if your business does not have suitable assets to use as collateral.

Max Funding Review – Products Types

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If you are considering getting a Max Funding business loan, then you will find the lender offers flexible solutions that should fit most borrowers business needs.

Max Funding offers 3 types of primary loan categories, these are:

1. Secured small business loans (loans under $50,000)
   1. Fast business loans
   2. Short-term loans
   3. Bad credit loans
2. Secured large business loans (loans over $50,000)
   1. Start-up loans/Franchise loans
   2. Low doc loans
   3. Caveat loans
   4. Second mortgage loans
   5. Equity business loans
   6. Franchise loans
3. Unsecured business loans
   

Max Funding Products Overview	Funding Amount	Repayment Terms	Type of Security
Short Term Loans	$2,000 – $30,000	1 – 36 Months	Registered Vehicle (Finance ok) or Real Estate Property (mortgage ok)
Bad Credit Loans	$2,000 – $50,000	1 – 36 Months	Registered Vehicle (Finance ok) or Real Estate Property (mortgage ok)
Fast Business Loans	$2,000 – $10,000	1 – 24 Months	Registered Vehicle (Finance ok) or Real Estate Property (mortgage ok)
Equity Business Loans	$20,000 – $1,000,000	1 – 36 Months	Real estate property (mortgaged OK)
Caveat Loans	$10,000 – $50,000	1 – 36 Months	Real estate property (mortgaged OK)
Second Mortgage Loans	$200,000 – $1,000,000	1 – 36 Months	Real estate property (mortgaged OK)
Start Up Business Loans	$10,000 to $100,000	1 – 36 Months	Real estate property (mortgaged OK)
Low Doc Loans	$50,000 – $1,000,000	1 – 36 Months	Real estate property (mortgaged OK)
Franchise Loans	$3,000 – $1,000,000	1 – 36 Months	Real estate property (mortgaged OK)
Unsecured Business Loans	$2,000 – $30,000	1 – 12 Months	None Required

All loans except unsecured business loans require backing with security. This security will usually be either property or motor vehicles and it is ok if the asset is still being financed or has a mortgage on it. The requirement for collateral makes the loan suitable for start-ups and businesses with poor credit.

Small business loans can be up to $50,000 and preapproval can be done within minutes following application online. Settlement of the loan should take 24 hours.

Secured loans are much the same as small business loans but start from $50,000 and go as high as $1,000,000. The main point of the difference is the loans the pre-approval and funding time take longer than small business loans. Pre-approval following application takes 1 to 2 hours and settlement 3 to 5 days.

Unsecured business loans can be up to $30,000 and come with a repayment period of $30,000. Pre-approval takes only 3 minutes and settlement of the loan can be within 24 hours.

Security With Max Funding

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Except for unsecured business loans, all loans will require the loan to be backed with an asset. Some loans allow you to choose between registered motor vehicles or real estate property. Other loans must use property.

Max Funding are ok if you still have finance on the vehicle or a mortgage on the property. You can use the equity of the asset you or your business owns.

For example, if a property has a value of $800,000 and there is a $300,000 mortgage remaining then you can use up to $500,000 to secure the loan. The amount you borrow will actually be a bit less

“Property value minus mortgage remaining multiplied by a percentage that Max Funding determines following a business risk assessment.”

Loans of lower amounts can use registered motor vehicles as security. Like with a property that still has a mortgage, it is ok if the vehicle not fully owned. The following rule will apply to determine how much you can borrow:

“Vehicle value minus loan remaining multiplied by a percentage that Max Funding determines following a business risk assessment.”

Costs And Interest Rates with Max Funding

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Loans have a simple interest rate that starts from 1.50% per month which Max Funding claim is one of the most competitive available in the market. These interest rates have no hidden fees

The interest you pay will vary for a range of factors including:

1. How much working capital you borrow
2. The purpose of the loan
3. The type and value of the collateral you use
4. Your business cash flow/revenue
5. Your credit score/history
6. The loan term

There are two things to consider when assessing fees with Max Funding.

1. Interest rate is monthly: this means 1.50% is actually 18% per annum
2. They use a simple interest rate: Max Funding says there are no hidden fees so it is unclear how much more the Annual Percentage Rate (APR) will cost. APR is a true reflection of your final costs as it takes into other costs such as application fee, origination fees, processing fees.

Max Funding Small Business Loans

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In its most basic form, a small business loan is funding from a lender that your business can use for any business purpose. As the name implies, small business loans allow you to borrow smaller amounts.

In the case of Max Funding, these amounts can be range from $3,000 to $50,000.

Loans for business purposes should aim to add value to the business. Classic reasons you can use a (secured) small business loan include:

• Increase working capital
• Pay debts and bills
• Start or grow your business
• Expand business operations
• Commence a marketing campaign

While the name does define which type of loan you should look for, there are only a few minor differences between the loans available.

• Fast business loans – Small amounts (up to $10,000) with exceptionally fast approval and funding
• Short-term loans – loans up to $30,000 with faster repayment
• Bad credit loans – loans up to $50,000 for businesses with poor credit history

Fast Business Loans (Small business loans)

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Fast business loans provide funding when your business needs capital in a hurry. For this reason, the amount you can borrow is lower, allowing the lender to quickly approve without taking on too high a risk.

Max Funding can approve pre-approve requests for fast business loans in 3 minutes and have funding in your business bank account on the same day.

Fast business loans with Max Funding range from $3,000 to $10,000 and have repayment period of 1 to 24 months,

Choose a fast business loan to pay off sudden unexpected expenses such as inventory or office repairs as they often have a higher interest rate.

You will need to provide either a motor vehicle or real estate property as collateral. Given the loan is only up to $10,000, securing the loan with property does appear disproportionate.

Short-Term Business Loans (Small business loans)

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As the name implies, short-term loans allow you to get finance quickly and pay back in a short period.

Short-term business loans have faster repayment terms so your payment schedule may be daily or weekly rather than monthly. Faster repayment can save on interest costs since more repayments reduce your principal faster.

Choose short-term business loans over fast business loans when you need over $10,000.

Bad Credit Loans (Small business loans)

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Sometimes (correctly or incorrectly) called no credit check loans, bad credit business loans may be a good option if your business has:

• A poor credit score
• A record of payment dishonours
• A history of loan defaults
• A previous bankruptcy

Max Funding strives to understand all applicants’ circumstances when assessing an application as they appreciate there can be many reasons to explain bad credit issues.

To qualify for a bad credit loan, you will likely need to show Max Funding that your business has good financial health. While it is optional if you show financial paperwork, being able to show a strong balance sheet and cash flow mean lower interest rates and an increased likelihood of loan approval

Regardless if your business shows financial papers or not, one should expect higher interest rates than other loans. Poor creditworthiness means the lender is taking on greater risk so charge accordingly.

Max Funding Large Secured Business loans

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Max Funding large secured business loans are much the same as small business loans but allow you to borrow over $50,000 and below $1,000,000.

These loans are term loans and since they are of larger amounts, are for more specialised purposes.

• Equity business loans – Allows you to use collateral for loans between $20,000 and $1,000,000
• Start-up loans – Suitable for starting a new business even if the business has no turnover or trading history
• Low doc loans – Loans that do not require finance documentation
• Caveat loans – Place a caveat on your property as a security
• Second mortgage loans – Use property that still has existing mortgage as collateral
• Franchise loans – loans that allow you to use the franchise as collateral when purchasing a franchise
  

Equity Business Loans (large business loans)

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Using an equity business loan allows you to use assets the business has acquired as collateral to get finance.

An equity business loan is Max Funding’s most flexible product for loans over $100,000. Max Funding has designed this loan so that it easy to qualify for, can be used for a range of purposes, and has fast funding.

Loans can be up to $1 million and come with a 3 year repayment period.

To qualify for this loan, all one needs is property equity to use as collateral and to use the capital for business purposes. Assuming no issues are found during assessment, then funding can be provided within 24 hours (despite the advertised 3-5 days).

Start-up Loans (large business loans)

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Start-Up loans are the most popular type of loan Max Funding offers. If you are looking to start your own business then Max Funding is one of the few lenders that provide this type of funding.

Getting funds to start a new business can be a challenge as banks are no an option. Banks consider start-ups to be high-risk candidates for loans so prefer to cater to businesses that can provide evidence of consistent profitability over 2 to 4 years. 

Max Funding aims to help business owners overcome this by removing red-tape such as financial documents, business plans, and credit checks during pre-approval when applying and approving start-up loans.

Choosing Max Funding means you can obtain up to $1 million in funding but can be as little as $3,000. Most loans range between $10,000 and $100,000 and have a 3-year repayment term.

Low Doc Loans and No Doc Loans (large business loans)

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A low documentation (low doc) business loan is a loan that requires only a minimum level of financial documentation to achieve approval. Low doc loans are sometimes called alt doc loans and are tailored for self-employed businesses, contractors, and small businesses and a good option for start-up businesses.

No documentation loans (no doc) are the same but require no documentation as all. To get a No Doc loan, you will need an Australian Business Number (ABN).

Many lenders require financial documentation as proof to show the capacity to repay the capital the business borrows. Typical documentation includes:

• Cash flow and cash flow projections
• Business activity statements
• Profit and loss (P&L) statement
• Balance sheets
• Business assets

However, the requirement for paperwork can be an issue for several reasons such as:

1. You lack paperwork: Start-ups may not have the financial documents other loans require
2. Paperwork is not up to date: Self-employed, contractors and small businesses may the resources to keep their papers in order
3. Time: Small businesses may not have the time to organise paperwork when applying for a loan
4. Lack cash flow: If your business doesn’t believe it will satisfy cash flow requirements for loan

Second Mortgage Loans

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A second mortgage loan allows business owners to increase their financial options for more capital.  With this loan, the business owner uses a second mortgage as security against a property that already has an existing first mortgage.

While a second mortgage loan can be a good option, it is important to know these loans come with higher interest costs. This is because the lender of the first mortgage has the first rank in the event the property is sold. The lender for the second mortgage will only be able to claim what funds remain after the first rank lender has been repaid.

Second Mortgage loans can be between $3,000 and $1,000,000 and come with a 3 year repayment term.

The amount you can borrow will depend on how much equity the property you use as collateral you own and how much the lender with first rank can claim. Once these considerations are taken into account you can borrow up to 100% of the loan to value ratio

Second Mortgage loans are best when:

• You need a short-term loan and have a solid plan for you will pay the loan in the term period
• The business needs funding fast
• Other lending options can’t get approval
• The business needs access to more capital than available with other loan options
• Taking out a first mortgage can reduce the business credit rating
• You wish to avoid refinancing which can delay approval of the loan
• There may be tax benefits over other loans options (speak with your accountant)
  

Caveat Loans (large business loans)

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A caveat loan means the lender places a caveat on the property you use as collateral. The has two impacts:

1. You (or the business) cannot sell the property
2. You (or the business) cannot use the property as security for any other form of funding (i.e. a second mortgage loan)

Once you repay the loan, the lender (in this case Max Funding) will release the caveat.

Choosing a caveat loan with Max Funding means you can borrow up to 100% of the property’s value * Mortgaged amount as long as the loan amount is below $1,000,000. Since you are using property you own as security, this is one of the easiest loans to get with Max Funding. Most caveats are between $10,000 and $5,00,000

One appealing feature of a caveat loan is that Max Funding allows refinancing of your existing loans to be part of one caveat loan.

Max Funding will consider most types of property for security as long as they cover the value of the caveat, examples include:

• Residential
• Commercial
• Real-estate only
• Farm
• Industrial

Note: Max Funding is unlikely to accept overseas property for the caveat.

Franchise Loans (large business loans)

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Starting a franchise business is often a stronger and safer option than starting your own business venture however starting a franchise will come with higher start-up costs. Max Funding can help provide you with a franchise loan to cover your start-up costs.

A franchise loan is much the same as a secured business loan but you will usually secure the loan against the store, restaurant, or outlet that you are looking to buy from the franchisor, Max Funding however accept property which is slightly unusual for a franchise loan.

Max Funding will lend up to $1,000,000 to buy your franchise. This high amount covers costs such as franchise fees, stock, and other business assets however you are buying into a mature business with established branding, management operations, and marketing which can reduce business risks.

Loans are available for all franchises and it is ok if you have no business experience and a poor credit history. Decisions on your loan application can be made on the same day,

Max Funding Unsecured Business Loans

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An unsecured business loan means you don’t have to put up any collateral to secure your loan. But the lender will charge a higher interest rate to cover the greater risk. Unsecured loans allow you to get funds fast with minimal paperwork. Despite the higher cost, sometimes this may be the best type of loan. Examples include:

• You only need a short-term loan
• The business does not own suitable assets to use as collateral
• The guarantor has a better credit history than the business
• The business needs funding fast (unsecured loans are quicker to approve)
• Unsecured loans often have a shorter repayment period
• The business is not an established business (has an operating month less than 6 months)
  

In place of collateral, the business owner will need to provide a personal guarantee.

Types of loans you might use an unsecured business loan include

• Short-term loans
• Equipment finance
• Trader finance
• Invoice finance (debtor finance)

Unsecured business loans with Max Funding range from $2,000 to $30,000. The repayment term can be between 1 and 12 months.

Ease of application and application process

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There are two stages for the Max Funding application process, application for pre-approval, followed by formal approval. The first stage is for pre-approval takes under five minutes, as you only need to provide basic details about the loan you need and the assets the business has. With this information, you will get pre-approval on the spot unless you don’t meet Max Funding’s lending requirements.

Questions Max Funding ask include:

• The loan amount you wish to borrow (enter the maximum you wish to borrow)
• The purpose of the loan (start-up, resolve your cash flow, grow your business, other)
• A rating for the credit history of the business (good, fair, poor)
• Information about any property suitable for collateral
• Information about any vehicles suitable for security
  

Should you proceed past the pre-approval stage, then you will need to complete other details such as

• Business income details
• Photo verification
• Bank account details for funding
  

It is at this stage Max Funding specialist will work with you to find a loan for your needs. This stage of the process will involve a business or personal credit check.

Funding speed

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While pre-approval for a business loan can take just minutes. Settlement can will take slightly longer

• Loans under $50,000 = same day or within 24 hours
• Loans above $50,000 = Within 243 to 5 days
• Unsecured loans = same day or within 24 hours

Payment Schedule

Max Funding offers the most flexibility of any lender in the market. Max Funding will work with you to find the best schedule for your needs Options for payment include:

• Periodic payment schedule (such as daily, weekly, fortnightly, monthly, quarterly, seasonal),
• Lump-sum payment
• Combination of periodic and lump-sum.

Line of credit option

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All loans with Max Funding are straight business loans. This Max Funding will deposit the full amount should your application be successful and you accept the loan. Repayment will begin immediately following settlement.

Except for unsecured business loans, most Max Funding products have the option of attaching a line of credit to your loan. To get a line of credit, you will need to request this directly with Max Funding.

Max Funding Review – Customer Service

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The lender has a client care team based in Sydney, NSW available 9 am to 5.30 Monday to Friday. Contact methods include telephone, Fax, Email, and web email (via the website). There is no live chat facility.

Max Funding Review – Trustpilot

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Trustpilot does not appear to have a Max Funding account. Instead, they appear to use Reviews.io and Google maps for their reviews.

The overall score on Reviews.io is 4.98 star rating from 617 reviews. Of these reviews over 600 reviews are 5 stars and the remainder are 4 stars.

Google Maps has 360 reviews. Of these 31 gave a one star rating, 12 gave a 2 to 4 stars rating and the remaining 317 gave a 5 star rating.

It is definitely interesting that Max Funding doesn’t use Trustpilot for their review. One thing we did notice is that the Max Funding list some of the best reviews from google maps on their home page but designed the review layout section so that it looks exactly like it is coming from Trustpilot.

Max Funding Website review

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The Max Funding website can appear disjointed and confusing as the lender offers many loans. Some loan pages lack details while other pages have information that is outdated or wrong. These issues make it difficult to find and make sense of the information about the loan you need. Examples of issues include:

• Every business loan type appears to have a line of credit option. However, Max Funding does not explain how its line of credit works on the website.
• Max Funding says they offer some of the lowest interest rates starting from 1.50% simple interest.  However, the lender doesn’t clearly explain what they call simple interest. Simple interest is the loan amount (principal) x interest rate x length of the loan so does not include other fees that may apply to the loan. Max Funding promises no hidden fees, so it is interesting they do not advertise their fees as an annual percentage rate (APR) interest.
• Max Funding advertises a simple interest rate starting from 1.50% for all their loans. This is likely accurate, however, in some sections of the website, they state the interest is 1.80% (this might be an error an meant to mean 18% per annum)
• Max Funding has too many types of loans, and many of them can be hard to find on the website and lack information. While Max Funding provides some explanation about the loans, many details are not clear or missing. Franchise loans, for example, don’t explain what type of asset security you can use and some loans don’t say how much you can borrow.

Conclusions about Max Funding

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If you need an equity business loan and you have a property or vehicle to use as collateral, the range of loans available with Max Funding increases. With low simple interest rates from 1.50% per month and 3-year loan terms, Max Funding should have a loan that works for you. Our major criticism with Max Funding is their website, as it could present information about each loan type with better detail.

Max Funding is also an option if you don’t have collateral to secure the loan. Max Funding offers up to $30,000 for unsecured loans as long as the business has a turnover of at least $6000 a month and 6+ months of trading operations. However, if you need loans over $30,000 or specialty loan types like a merchant cash advance, line of credit or credit card style loan, then you may wish to consider other lenders.