• Updated: 13/09/2021
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The Best Small Business Refinance Loans

Paying too much for your loan? try these lenders to save on costs

  • Prospa
  • Prospa
  • - Best lender with High repeat customer rate
  • Moula
  • Moula
  • - Top choice for cost transparency
  • Lumi
  • Lumi
  • - Good payment relief with 4 week interest free period
  • Capify
  • Capify
  • - 2 great products including merchant cash advances
  • Max Funding
  • Max Funding
  • - Top range of lending products up to $1,000,000
  • Valiant
  • Valiant
  • - Good marketplace to compare lending solutions
  • OnDeck
  • OnDeck
  • - Best for same day loans up to $250,000
  • Bizcap
  • Bizcap
  • - Best for fast loans (under 2 hours) up to $1,000,000
  • Swoop
  • Swoop
  • - Top lending platform to find the best loan options

Small Business Refinance Loans

1Prospa

Prospa is one of Australia’s leading online lenders having lent over $2 billion to SME across Australia. One impressive aspect with Prospa is that 50% of customers are repeat customers, highlight to quality of their delivery.

Much of Prospa’s success rests with the efficiency and quality they are able to deliver through their lending platform. The platform utilises technology to make the application process fast (just 10 minutes) and simple (no documents needed for loans under $150,000).

Small business loans range from $5,000 to $300,000 and require no security if under $150,000. These loans come with a loan term of 3 to 36 months which you can pay daily or weekly.

To qualify for a loan, your business should earn around $6,000 a month on average and have been trading for at least 6 months.

If you are looking for a more flexible loan type, a line of credit is also available.

Go To Prospa
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  • Loan Type: Small Business Loans
  • Loan Amount : $300,000
  • Loan Terms: 3 - 36 months
  • Loan Type: Business Line Of Credit
  • Loan Amount: $2,000 - $150,000
  • Loan Terms: renewable 24 month term
    • Min. Revenue: $72,000 p.a
    • Min. Trading: 6 months
    • Unsecured?: (up to $150,000)
    • Credit Score: n/a
    2Moula

    Moula prides themselves on their transparency and this is achieved a number of ways:

    1. A promise that they make responsible lending decisions meaning you won’t get loans your business will find a burden.
    2. A willingness to open about how they make lending decisions
    3. A Promise of no hidden fees (they are a signatory of SMART Box™)

    Most unique among all lenders, is they publish their loan interest rates being 15% to 35% Annual Percentage Rate. No (or few) other lenders publish their rates and if they do, it’s likely simple interest rates that don’t include all costs.

    Moula offers unsecured business loans for refinancing. These loans range from $5,000 to $250,000 for which you can take 12 to 24 months to repay the loan. These payments will be each fortnight.

    Application takes about 5 minutes and is low doc if the loan is under $100,000. To speed up the approval, link your financial data (bank account, Xero, MYOB) and give Moula permission to check your identity and credit.

    To qualify, your business needs $5,000 a month in earnings and to have been operating for 6 months or more. A GST registration is required if your annual turnover is above $75,000.

     

    Go To Moula
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    • Loan Type: Business Loans
    • Loan Amount : $5,000 - $250,000
    • Loan Terms: 12-24 months
    • Loan Type: Moula Pay (Buy Now Pay Later)
    • Loan Amount: $250,000
    • Loan Terms: 12 months (3 with no interest)
      • Min. Revenue: $5,000 p.m
      • Min. Trading: 6+ months
      • Unsecured?:
      • Credit Score: n/a
      3Lumi

      Lumi Finance has 3 points of difference from other lenders. These are:

      1. A 4 week interest-free pause on loans – choose a 4 week period at any stage of the loan and only pay the principal.

      2. Same-day funding – if you provide all the relevant information and you apply before 4 pm, Lumi can provide your funding on the same day.

      3. 5-minute application – applications up to $150,000 are low doc and unsecured meaning a simpler application process.

      Lumi promises flexible, fair, and honest lending solutions. They will never lender to you if they don’t believe you can repay the loan. They also promise transparency so have banished hidden fees and charges. You can even pay the loan early without an early repayment fee. As a signatory of SMART Box™, Lumi ensures your quote will show all costs you need to know.

      Small business loans range from $5,000 to $300,000 and have a simple interest rate cost of 9% to 24% p.a. Repayment terms can be as little as 3 months and up to 24 months. Lumi payment schedules are weekly.

      To apply, you need an ABN, 6 months trading history and a turnover of at least $50,000 per month.

      Note: Business lines of credit are also available

      Go To Lumi
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      • Loan Type: Small Business Loans
      • Loan Amount : $5,000 - $200,000
      • Loan Terms: 3 - 36 months
      • Loan Type: Business Line Of Credit
      • Loan Amount: Up to $250,000
      • Loan Terms: Up to 24 months
        • Min. Revenue: $10,000 per month
        • Min. Trading: 12 months+
        • Unsecured?: (up to $150,000)
        • Credit Score: n/a
        4Capify

        Since starting in 2002 in the US and Canada, Capify have since expanded to to include offices in the UK and Sydeny, Australia in 2008. So have a history of supporting business through difficult times such as the global financial crises (GFC) and Covid-19.

        Like most lenders on this list, Capify don’t have a specific refinancing product but can tailor their product to help with your debt consolidation or refinancing.

        Capify offer two products that can be useful as part of a refinancing plan.

        Most business will look to the small business loan – a lump sum loan with scheduled payments however a merchant cash advance is also available. If the revenue of your business is via card payments such as debit or credit cards the an MCA may be preferable.

        Both products have funding ranging from $5,000 to $300,000 and do not require security. Each come with a payment period of 3-12 month however MCA payment amounts will vary depending on daily revenue while loans always have the same payment amount.

        To be eligible you need to have at least six months’ trading history and a minimum monthly turnover of $10,000. No financials will be required for loans under $75,000.

        Go To Capify
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        • Loan Type: Small Business Loans
        • Loan Amount : $5,000 - $300,000
        • Loan Terms: 3 - 12 months
        • Loan Type: Merchant Cash Advance (MCA)
        • Loan Amount: $5,000 - $300,000
        • Loan Terms: 3 - 12 months
          • Min. Revenue: $10,000 - $20,000 p.m.
          • Min. Trading: 6 months (loans) / 3 months (MCA)
          • Unsecured?:
          • Credit Score: n/a
          5Max Funding

          Since starting in 2011, Max Funding have become one of the top rated online lending providers, having funding over 8500 business across 131 industries.

          Max Funding understand that is challenging for small business owners to obtain funding from traditional banks so offer funding solutions for all kinds of business needs. So whether you business has good or bad credit, short or long term trading history and assets to use as collateral, Max Funding can help you.

          The application process takes under 10 minutes and do not require documentation. Applicant will know in short time if their application is pre-approved. If so, then applicant should expect a call from a Max Funding lender on the same day, to discuss your requirements and find the right solution for your needs. Max Funding place a large focus on personalised service.

          Loans range from $2,000 to $1,000,000 and cover many types of loans including unsecured loans, asset backed loan or fast business loans. Interest rates start from 1.50% per month (simple interest) and loan periods range from 1-36 months. These loans come with flexible repayment terms including daily, weekly, monthly and ever quarterly payments.

          For those looking for unsecured refinance options, your business must have a minimum 6 months trading history and stable income of $7,500 a month (and large enough to replace existing loans) These loans can be up to $30,000. Larger loans (up to $1,000,000) will need security usually in the form of a registered motor vehicle or real estate property.

          Go to Max Funding
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          • Loan Type: Secured small business loans
          • Loan Amount : $2,000 to $50,000
          • Loan Terms: 1 to 36 months
          • Loan Type: Secured large business Loans
          • Loan Amount: $3,000 - $1,000,000
          • Loan Terms: 1 to 36 months
          • Loan Type: Unsecured Business Loans
          • Loan Amount: $2,000 to $30,000
          • Loan Terms: 1 to 24 months
          • Min. Revenue: $6,000 p.m (unsecured loans)
          • Min. Trading: 6+ months
          • Unsecured?:
          • Credit Score: n/a
          6Valiant

          Valiant recommend that looking to refinance your business loan every 2-3 years. This makes sense as the lending market is competitive, so it pays to see what options are available to lower your costs.

          One good option for refinancing is Valiant Finance. Valiant Finance is a loan broker that connects you with their lending marketplace of over 80 lenders. Instead of having to sort through different lenders one by one to find the right lender, Valiant Finance can do the work for you via their lending platform. This marketplace consists of non-bank lenders, peer-to-business and bank funders.

          The Valiant Finance application process will ask you for basic information about your requirements. This information includes how much you are looking to borrow, your industry and avg monthly turnover.

          Once this is done, Valiant will provide a list of options across different loan types such as overdrafts, line of credit, and loans. These options will show you total repayments, monthly and weekly repayments and time to funding. All costs are included.

          Go To Valiant
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          • Loan Type: Unsecured Business Loans
          • Loan Amount : $5,000 - $250,000
          • Loan Terms: 3 months to 5 years
          • Loan Type: Line Of Credit
          • Loan Amount: $5,000 - $250,000
          • Loan Terms: 3+ months
          • Loan Type: Bank Overdraft
          • Loan Amount: $2,000 to $100,000+
          • Loan Terms: Ongoing with no fixed term
          • Min. Revenue: $75,000 p.a
          • Min. Trading: 3+ Months
          • Unsecured?:
          • Credit Score: Be creditworthy
          7OnDeck

          Ondeck is one of the first companies to specialise in online lending having started in the US in 2007 and since expanded to Canada and Australia. OnDeck offers just the one lending product, unsecured business loans which allows them to really specialise in their expertise. That is helping small to medium businesses obtain the funding.

          Applications take just 10 minutes to complete, with funding into the business bank account possible in 2 hours for loans under $100,000 and within 24 hours for larger loan.

          This is possible thanks to advanced risk prediction model developed by OnDeck called KOALA. This model uses big data and credit reporting resources to enable quick approvals.

          While Ondeck are not purely a debt consolidation and refinancing firm, they can assist with refinancing in conjunction with gaining further capital for use in your business.

          Loans range from $10,000 to $250,000 with terms of 6 to 24 months. Funding under $100,000 can take as little as 2 hours to settle.

          To qualify for a loan, your business needs to have been in business for at least year and have an annual turnover of $100,000. The business should also have no existing or recent bankruptcy and a minimum business credit score of 500.

          Go To OnDeck
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          • Loan Type: Business Loans
          • Loan Amount : $10,000 - $250,000
          • Loan Terms: 6- 24 months
              • Min. Revenue: $100,000 p.a
              • Min. Trading: 12+ months
              • Unsecured?:
              • Credit Score: 500
              8Bizcap

              If your business does not have a top credit rating, previous defaults or cannot get finance from other lenders then Bizcap could be your best option for debt refinance. Promoting themselves as ‘Australia’s most open-minded lender’, Bizcap are willing to consider other factors such as cash flow than just your credit score.

              Bizcap’s service is highly personalised, while they only offer one product, it is flexible enough to meet the needs of many businesses. Thanks to a systematic and robust methodology when pricing risks, Bizcap can find solutions that support businesses in a way that is sustainable for both lender and borrower. For this reason, it is always worth having a conversation with their team of lending specialists.

              The lender is also able to assess, approve and provide funds with impressive speed. The time from the loan application (which takes only ten minutes) to funding is just 3 hours.

              Bizcap loans are non-asset backed and range from $5,000 to $1,000,000 and come with terms of 3 to 12 months. These payments can be daily or weekly (excluding weekends).

              To qualify with Bizcap, you must have an active ABN, turnover of $10,000 a month (higher for selected industries) and 6 months in business.

              Go To BizCap
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              • Loan Type: Unsecured Business Loans
              • Loan Amount : $5,000 - $1,000,000
              • Loan Terms: 3 - 12 months
                  • Min. Revenue: $10,000 p.m
                  • Min. Trading: 6+ months
                  • Unsecured?:
                  • Credit Score: n/a
                  9ZipBusiness

                  Zip Business is slightly different to other lenders, as they don’t offer traditional business loans. Instead, Zip offers a business line of credit which means you can draw funding from a credit facility as you need it. The advantage of this is that you only pay interest on the funds you draw, not the entire lump sum

                  As an unsecured lender, Zip won’t allow stacking of loans against another unsecured loan. Instead, they will look at ways to finance existing unsecured debts. Any approval amount would include the refinance portion which would simply be transferred directly to the lender of the existing loan and any balance would then be available for you to draw.

                  A Zip Business credit facility can be up to $500,000 and comes with a 3 month commitment period (which means you must make your first drawdown during this time). The credit line can last up to 24 months.

                  To qualify you will need at least 200k in annual turnover, 18+ months of trading, an ABN and a profitable business. Application online takes 10 minutes and will require the following documentation

                  * BAS returns for the last 4 quarters
                  * Balance sheet for the last 2 years
                  * Profit & Loss statements for the last 2 years

                  Go To Zip Business
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                  • Loan Type: Business Line Of Credit
                  • Loan Amount : Up to $500,000
                  • Loan Terms: Up to 24 months
                      • Min. Revenue: 200,000 p.a
                      • Min. Trading: 18+ months
                      • Unsecured?:
                      • Credit Score: n/a
                      10Swoop

                      It is always good search for refinance options to cut down on your borrowing costs. One way to do this is with Irish based Swoop Funding, who recently entered the Australian marketplace.

                      Swoop Funding is a a one-stop lending platform that connects business seeking finance with over 100 funding providers. In short, Swoop Funding help you to find the best and most suitable loans in Australia all in one place. This process simplifies and speed up the process of finding lenders to refinance existing loan.

                      The process for helping borrowers is quite straight-forward, the Swoop Funding platform will help you build business profiles and then use an algorithm to instantly match you with potential funders. To make things even easier, Swoop Funding will manage the application process once you determine the source of funding you prefer.

                      To apply for funding with Swoop, you need to signup for a Swoop Funding account and then provide business information so an assessment can be made. Information includes, how much funding you need, type of loan and industry.

                      To ensure, your specific requirements are met, Swoop Funding will also contact you via email so you can advise on any further requirements you have and you are free to call for conversation their team of expert finance brokers as well.

                      Go To Swoop Funding
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                              Small Business Refinance Loans

                              Building a business is never easy and one of the biggest challenges is managing your debts which for most is necessary to grow your business. Whether this debt is a short-term business loan to pay for an unexpected bill or a business line of credit to better manage cash flow, chances are these loans have unfavourable interest rates or loan terms.

                              Finding the best loan takes research and time, a luxury not everyone has when there are costs to pay so it means accepting financial arrangements that could otherwise be better.

                              While most business owners accept the cost of the loan for a fast injection of cash, lenders base their loans arrangments on the financial health and credit history of the company. However, circumstances can change, it might be that your business has an improved credit score, the revenue of the business has stabilised or the existing loans are not the best fit for your business.

                              In such circumstances, it may be possible to seek business loan refinancing so to reduce payments and save on money.

                              What is business loan refinancing?

                              Business loan refinancing is simply a way of repacking your debt so that you get more favorable rates and loan terms. Refinancing a loan effectively means taking out a brand new loan and using the funding from this loan to close the debt from existing business loans you hold.

                              Other than reducing your costs for the existing loans, refinancing is a good way to combine multiple loans into one payment that is easy to manage.

                              Needless to say, the choice to refinance any loans should only be done to improve your existing loan conditions.

                              When refinancing your loan can be a good business move

                              In general, business refinancing is a good solution if you will save 5% of your costs overall or in order to extend the repayments to place less immediate stress on your existing payments.

                              The real question you need to ask yourself is what you hope to achieve with refinancing. Common reasons for exploring your loan options for refinancing include:

                              • reduce loan payments or loan amount
                              • extend the repayment period
                              • switch to a different type of loan or interest rate type
                              • unlock extra equity for the business
                              • access assets that are tied as security in existing loans
                              • ease the management of your debts through consolidation
                              • take advantage of tax benefits

                              As your business grows and the financial position of your business improves, it’s a good idea to consider if your business might be in a position to refinance your loans.

                              While lenders, make money through the interest you pay for the loan, it is in their interest to keep you as a customer for the long term. Helping your business successfully grow is one way they can achieve this, for this reason, lenders may be open to considering a refinancing arrangement.

                              Lenders will consider a refinance if you can show the following:

                              • Better business credit score
                              • Longer trading history of the business
                              • Business annual revenue
                              • Business assets such as residential property or commercial property

                              You don’t necessarily have to achieve some or all of the above. Shopping around and seeking a loan with a new lender that offers lower interest rates may be more cost-effective than staying with the existing lender. It may also prompt your current lender to reduce the loan repayment terms as they don’t want to lose you to a competitor.

                              The Cost of Refinancing

                              One of the benefits of refinancing is that it allows you to close expensive existing loans with loans that have lower interest rates. While on the surface, this may appear to be a win for your business, you need to keep in mind that some lenders penalise you for closing your loan before the end of the repayment term. Early repayment or early exit fees are usually applied to fixed-rate or fixed-term loans as these types of loans are less flexible than variable rate loans.

                              In addition to early break fees, you may have expenses such as origination fees, loan broker fees (if you use one), and possibly legal costs.

                              On the flip side, there may also be costs to start a new loan such as upfront fees and valuation fees in the case of a secured business loan.

                              Another disadvantage is that it can impact your business credit score. Regular borrowing can negatively impact your credit score, that said, timely payment of your loans does allow you to build a good credit reputation.

                              Refinancing a Loan to Consolidate Business Debts

                              Having multiple sources of business finance such as business overdrafts, credit cards, working capital loans can make management of your expenses complicated. For this reasons consolidation of your debts into single daily, weekly or monthly payments can make sense.

                              Consolidating your debt into one loan is known as debt consolidation. This is a good strategy to simplify the management of business cash flow. If you do go down this path make sure the refinancing loan rates are an improvement otherwise you may end up back where you started, having to take out a loan to finance debts.

                              How do you Refinance a Business Loan?

                              There are multiple refinancing options available to you and small business owners to manage existing debt. Options can include:

                              • Negotiating better loan arrangements with the existing lender
                              • Changing lenders but carrying across the same lending products but with better terms
                              • Moving to a different loan type such as equipment finance or small business loan
                              • Consolidating debts onto a single new loan
                              • Revising the repayment amount or the frequency of repayments

                              Getting Started with Refinancing

                              Once you know what you want to achieve with refinancing and know which lender you wish to apply with, you are ready to commence the loan application process.

                              When choosing a lender, make sure you the lender has a valid Australian credit licence and AFSL number, has a good reputation for business lending and allows refinancing. You will also want to check the lender’s eligibility requirements, very few lenders will allow refinancing for startups and will not allow you to use the finance as a personal loan.

                              As part of your application, you may need to provide an ABN number, link your bank account details and provide recent bank statements. The lender will also want to know about any existing loans you have. This will allow the lender to do their credit checks and make a decision on your options for refinancing.

                              A loan consultant will then call you and discuss your options. As long as you apply on a business day, you can expect the refinancing to be sorted between 1 and 5 days with a non-bank SME lender.

                              Advantages

                              • Achieve a lower rate or loan term
                              • Increase cash flow
                              • Consolidate debt
                              • Release secured assets
                              • tax benefits

                              Disadvantages

                              • Potential penalties
                              • Longer repayment period may result in higher total amount
                              • May need extra loans to cover refinanced loans
                              • Can reduce credit reputation
                              • Can damage long term relationships with existing lenders

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