Zip Business Review (2021)

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Formerly known as Spotcap, Our Zip Business review looks at the business term loan and line of credit hybrid this SME lender offers.  Your credit line can be $10,000 to $500,000 with a payment period of 1 to 36 months, that you can draw down when you need. With interest only on drawn amounts, Zip Business is perfect if you may need one or more loans and you wish to maintain flexibility with how much you loan.

ProductsBusiness Loans
Merchant Cash Advance
Funding Amount$5,000 to $300,000
Loan Terms3 to 12 Months
Min. Trading Period6 Months
Min. Trading Turnover$10,000 a month
Unsecured/Secured Unsecured
Funding SpeedSame day approval
24 hours funding

Zip Business logo with words zip business review under it

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Loan ProductsLine of credit / business loan hybrid
Loan Terms & Funding Size
💰 Loan Amount$10,000 to $500,000
⏳ Loan Length1 to 36 months
📆Payment scheduleWeekly, Fortnightly, Monthly
💳 Line of Credit Option?✔️
Loan Costs
💸Fees (excl. interest)2-3% Origination Fee
﹪Interest Rate TypeInterest only on drawdown
Pay principal and interest over the loan term (pay same each period)
Total Interest Percentage/cost (TIP) and Annualised Percentage Rate (APR) is quoted
🔓 Unsecured Loans?✔️
👍 Early Repayment✔️ (No cost/penalty)
Loan Qualification
🎓 Qualification BasicsAustralian based business
Profitable business
🛍️ Min. Trading Qualification18 Months
📅 Min. Turnover Qualification$200,000 per annum
🗎 Low Doc Loans✔️ Under $150,000
😕 Bad Credit OK?Min. credit score of 300
(400 for construction)
Approval & Funding Speed
🏍 Fast Online Application✔️ Approval within 24 hours
💨 Funding SpeedFunding within 24 hours of approval if you provide your bank details

Zip Business Pros and Cons


  • Line of credit gives flexibility over term loans
  • Only pay interest on funds your draw
  • Unlimited drawdowns in months 1 to 3
  • Integrates with your accounting software
  • The credit line can be extended
  • Low minimum credit score (300)
  • Will businesses with loan default in the past
  • No hidden fees


  • Drawdowns available only in the first 3 months
  • Credit lines are non-revolving
  • Lack of financial products to choose from
  • The business should be profitable
  • Not for start-ups
  • Each drawdown may have a different payment schedule

Zip Business Products – What is a line of credit?

Zip Business offers a short-term business loan and line of credit hybrid. This loan works like a credit card, Zip Business gives your business a pool of funds, that you can access unlimited times in the first 3 months of the agreement. Each drawdown is a separate loan with its own repayment plan, which can be from 1 to 36 months.

Credit lines with Zip Business only apply interest costs on the loan facilities you use. This can mean significant savings over a business term loan, which has interest costs on the full loan amount from the start.

What is line of credit

A line of credit is a business finance arrangement giving you flexible access to funds you can borrow as a loan. Your application is assessed thoroughly and if a line of credit is approved, funds are made available for you to drawdown. You need only borrow what you require, as it is needed.

Your line of credit typically has a term of between one and three months, with the ongoing possibility to renew. During this term, you can repayable in weekly, fortnightly or monthly instalments, usually spread over 6 to 36 months.

When the initial line of credit term of up to one month is completed, you continue to repay, in monthly, fortnightly or weekly instalment, the funds you borrowed. Interest is only charged on the amounts you drawdown, not on the total value of the credit line.

Zip Business line of credit eligibility / qualification

Minimum Time Business Operating

Minimum Time Business

Min. 18 months

Minimum Turnover

Minimum Turnover

Min. $200,000 per annum

Credit History

Credit History

Min. credit score of 300
(400 for construction)
Previous default OK



Valid ABN or ACN
Profitable business
Australia bank account
No existing unsecured loan
(with other lenders)

Zip Business does require business has been in operations for at least 18 months. This is longer than some other lenders which only have a 6 month requirement. This requirement also makes them unsuitable for startups and new businesses, as you will need to have a history of bank statements showing cash flow.

Zip Business has a minimum credit score of 300 (400 for construction) so Zip can be a good option for business with weak credit history. Zip Business consider recent business performance, risk profile and cash flows when assessing any borrowers qualification.

Zip Business funding size and loan terms

Loan Amount

Loan Amount

$10,000 – $500,000

Term Length

Term Length

1 – 36 months

Payment Schedule

Payment Schedule

Weekly, Fortnightly, Monthly

Low Doc Loans


Unlimited drawdowns during months 1-3
Min. for each drawdown is $500
Pay interest only on drawdowns




Short-term loan costs and fees

Origination Fee

Origination Fee

2-3% on the amount you drawdown

Interest Rate

Interest Rate

Total Interest Percentage (TIP)
Annualised % Rate (APR)

Other Costs

Other features


No Hidden fees

No Hidden fees

Early Payment Permitted

Early Payment Permitted

The Fintech lender only charges origination and interest fees on the amount you draw, this means that if you do not end up using the loan, you will not need to pay any fees.

Each drawdown is a new loan with its own repayment schedule. So if you make multiple drawdowns, you could pay each loan at different times. These loans work on an amortisation schedule, you pay the principal and interest over the loan term. You pay a higher amount of interest at the start and less towards the end which means the payable amount remains the same through the life of the loan.

Zip business does not advertise their interest rates so it is hard to know what the cost will be but the loan provider is transparent with their costs.  Small business owners will be presented the Total Interest Percentage/cost (TIP) and Annualised Percentage Rate (APR) in both their conditional and unconditional approvals. In unconditional approvals, Zip includes a SMART Box statement which is a tool for standardising pricing disclosure. This tool provides multiple pricing metrics to help you better understand and assess the cost of your small business loan and compare Zip with other lenders.

Zip Business ease application and application process

Zip Business platform allows you to complete your business loan application in only 5 minutes.

One point to note is that if you applying for a loan under $150,000, then you may not need to provide financial documentation. You simply need to answer the following questions:

  • What was your business revenue (sales) in the last 12 months?
  • What was your business revenue (sales) in the last 3 months?
  • What was your business net profit in the last 12 months?
  • Do you have an overdraft, line of credit or business credit card? If yes, provide limit and limit used
  • Does your business have any outstanding borrowings? If so, provide total outstanding borrowings amount and total monthly payments
  • Does your business have ATO debt outstanding? If so, is this on a payment plan?

The application process comprises 4 steps.

  1. Eligibility Check
  2. Create an account
  3. Basic information (when do you need funds, loan duration, product type – SME government-guaranteed or Zip Business standard, business information (entity name, ABN, industry, personal information))
  4. Financials (upload Income Tax Returns, Annual account final for last 2 years, Business activity statements for last 4 quarters, latest integrated client account from ATO or connect accounting software)
  5. Bank Account (bank account number, BSB, account holder)

When you provide your accounting product, you can choose from the following:

  • MYOB AccoutEdge
  • MYOB Essential
  • Intuit  Quickbooks
  • Reckon
  • SAGE
  • Xero
  • Reckon

Accounting softwares we are integrated with


Should you not wish to provide your banking details, you can provide a PDF or CSV of the bank statement for the last 12 months. If you do this, Zip business can only provide you with a conditional credit line offer as the lender will need to connect to your bank for final approval.

Zip Business funding speed

Online Application

Online Application

5 Minutes



Within 24 hours
(with correct details)



Within 24 hours of approval

Online application with Zip Business can take as little as 5 minutes. If Zip Business has the correct information, they will advise of their decision within 24 hours.

When you apply for a credit line with Zip Business, you will need to provide your bank account. If you do this, then Zip can provide funds into your account the next working day.

What can you use the loan for?

Zip Business allow you to choose how you will use the funds as long as it is for business purposes. You cannot use the credit line for personal needs, The lender suggests a range of ways you can use the loan. These include:

Short term:

  • Marketing campaigns
  • Managing cash flows
  • Unexpected expenses

Long term

  • Remodelling and renovations
  • Hiring staff
  • Bridging receivables
  • Purchase equipment
  • Working capital and inventory

Let your business benefit from Zip Business unsecured lending

It’s your business, so you choose how to use the funds. Our credit lines are a versatile solution for both long and short term activities.


  • Protect your cash flow
    Give your business financial security by preparing for unforeseen expenses. Access to a line of credit can act as your safety net.
  • Refresh your inventory
    A credit line can supply the working capital needed to restock your inventory when you’re preparing for a busy season.
  • Bridge Receivables
    Secure the working capital you need to cover periods between funding rounds.


  • Grow your product range
    Extend your product range by funding purchasing. You could adjust an existing product for a new market, or start selling something entirely new.
  • Enter new markets
    Reach out to new customers, explore new ideas or run a targeted marketing campaign with the help of flexible financing.
  • Boost your reputation
    A credit line can fund a campaign tailored to improving how your business is perceived by customers, partners or the media.

Repayment Terms

  • Choice of Weekly, fortnightly and monthly repayment instalments
  • No charges or penalties for early repayment
  • Credit line can be extended

You repay each drawdown on a weekly, fortnight and monthly basis. The amount you pay each period is the same.

If you wish to extend your credit line then you can do this if there is less than 50% of the loan balance owing or after 3 months of repayment for a 12-month loan and 6 months of repayments for loans longer than 12 months.

Zip Business Review – Customer Support

When you contact Zip Business customer support via their website, you can choose if you would like a reply via email or phone. No live chat is available. Customer service is available business hours 5 days a week. Fast Business loans sent some inquiries to the customer support team as part of our fast finding and replies by email were relatively prompt. We like that there were no follow up calls given we did not request this.

Zip Business also has a handy FAQ section which should answer questions you may have about Zips products and how they can help you with your business needs.

Zip Business Review – Customer Reviews – Trustpilot

As Zip Business has only been operating since 2019, no Trustpilot social media presence is available. When operating as SpotCap Australia, TrustPilot gave SpotCap a score of 4.5 stars out of 5 (Excellent) from 100 reviews.

Zip Business Review Bottom line – Conclusions about Zip Business

Our Zip Business review found the lender offers an excellent product for small business. While the lenders’ financial services target clients that need a line of credit, there is no reason one cannot use the credit line as a short term business loan.

With credit lines as little as $10,000 and as high as $500,000 and a repayment period of up to 3 years, this Fintech has a lending product that is literally flexible enough to suit all SME’s but those that will need exceptionally large loans. You can make multiple drawdowns (up to you credit limit), use your entire credit limit at once and even choose not to use the loan, and you will bear no costs.

About Zip Business

In 2019, Zip co financial services took over Spotcap Australia and New Zealand. Now known as Zip Business, clients should expect the same experience that was provided by Spotcap given Zip Business have the same loan policies, products and platform, the Rocket Internet backed Spotcap offered Australian SME since 2015. This means you should expect the same experience the Berlin, Germany headquartered provider offers lending markets such as the UK, the Netherland and Spain.

Zip Co is known to many for their ‘Buy Now, Pay Later’ products such as Zip Pay, Zip Money and Zip Biz.  Zip Business being an extension of these products for clients needing significantly larger amounts.