Australian Fast Unsecured Business Loans

  • Updated: 27/07/2021
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Top 10 Australia Lenders In April 2021

Below shows our list of the best unsecured business loan Australia providers.

  • Prospa
  • Prospa
  • – Best for small business loans overall
  • Capify
  • Capify
  • – Best for small business loans overall
  • BizCap
  • BizCap
  • – The top lender for a fast business loan
  • OnDeck
  • OnDeck
  • – True short-term loan specialist
  • Moula
  • Moula
  • – Top SME business loans due to Interest-free period
  • Banjo
  • Banjo
  • – Top for simple application with no paperwork
  • Lumi
  • Lumi
  • – Fixed-rate loans for transparency
  • GetCapital
  • GetCapital
  • – Offers the largest range of loans for all needs

Top 10 Australia Lenders

  • 1Capify

  • Best Small Business Lender Overall

    Capify is Fast Business Loan’s best small business finance provider overall based on their combination of fast loan application and approvals, decent funding amount, and flexible repayment terms.

    Borrowers can choose either unsecured short-term small business loans or merchant cash advances of $5,000 to $300,000 with a loan term of 3 to 12 months.

    To qualify for a short-term business loan, your business needs to have been operating for at least 6 months and have $20,000 in monthly turnover (or 12 months and $10,000 a month). A merchant cash advance by contrast has 3-month trading requirement and $10,000 in monthly turnover. Business loan repayments are fixed daily for business loans and while a merchant cash advance takes a percentage of your turnover using daily direct debit.

    You can complete your loan application online in minutes and you will not financials, tax returns, or BAS if you borrow under $75,000. If you provide all details, then you can expect funding to your business bank account completed with 24-48 hours.

    With such a straightforward process, this allows you to avoid the long application and funding process typical of banks and focus on growing your business.

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  • 2BizCap

  • Best Lender For Fast Finance

    An unsecured business loan with Bizcap takes quick time. The online application takes only 5 minutes and does not require paperwork. BizCap will approve your application in just 1 hour and transfer the funds to your business bank account in as little as 3 hours. Fast funding turnaround means you can focus on growing the business, rather than dealing with paperwork and red tape.

    Bizcap’s unsecured business loans range from $5,000 to $1,000,000 and have a repayment term of 3-12 months. Payments can be daily or weekly and will vary to match your business’s high and low seasons. Should your business wish to repay the loan early, there are no penalties or costs.

    The lender promotes themselves as Australia’s most open-minded lender, as they have a very high approval rate. As long as you meet Bizcap’s minimum eligibility requirement of 5 months of trading and $10,000 in turnover per month, there a high chance of loan approval.

    Bizcap looks at more than the business’s credit score, history of bad credit defaults, bankruptcy, or judgment from previous financial hardship and instead places more value on existing cash flow and existing balance sheet.  Unlike most lenders, Bizcap will even lend even if your business has a loan with a competing lender.

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  • 3Zip Business

  • Good Line Of Credit Up To 500k

    Formerly known as Spotcap, Zip Business offers unsecured business lines of credit. A line of credit has some advantages over a small business loan as it allows your business to maintain control over its borrowings. With this type of finance, your business will only pay interest for the funds that you borrow from the credit facility. Choose Zip Business when you do not know how much funding you need upfront.

    A line of credit with Zip Business can be up to $500,000 and converts to a loan (or advance) when you make a drawdown from the credit facility. Repayment terms for the drawdown range from 1 to 36 months. To be eligible for a business loan, your business needs to have been operating for 18+ months, achieve a turnover of $200,000 per year and be a profitable business.

    Zip is transparent with its costs and has no monthly fees, hidden fees, early repayment fees, or application fees. Each drawdown has an origination fee of 2-3% plus the interest rate costs.

    Consider Zip business if you want access to one of the largest lines of credit facilities around and want to maintain flexible access to a credit facility as your business doesn’t know how much it needs to borrow.

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  • 4Ondeck

  • True Short-Term Loan Specialist

    With a wealth of loan types available, choosing the right loan can be overwhelming. OnDeck solves this by having just one product that is flexible enough for most business needs and the lender works hard to make their product work for your business needs.

    Loans with Ondeck are between $10,000 and $250,000, while these loans are less than some other non-bank lenders, they are perfect for many small businesses. With this amount, you get a generous repayment term of 6 to 24 months.

    To qualify for a loan, your business must have been trading for 1 year or more, have $100,000 in yearly revenue, a business credit score of at least 500, and no previous bankruptcy.

    Ondeck’s online application process takes only 10 minutes as you only need to fill in 15 fields and includes an automatic check of your credit score. Approval and funding take just 1 business day, which allows your business to resolve capital needs fast.

    As a member of the AFIA code of conduct agreement, OnDeck will provide you with a SMART Box™ statement so you can compare their quote with other lenders. This means no hidden fees and full transparency.

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  • 5Moula

  • Best Interest-Free Period

    Moula offers unsecured business loans and Moula Pay, a ‘buy now pay later’ type of finance.

    Cost transparency is important and Moula is one of the few lenders to advertise its interest rate range. With an Annual Percentage Rate (APR) of 14.95% to 34.95% and a provider of SMART Box™ statement for easy quote comparison with other lenders, Moula quotes are an accurate reflection of how much you will pay for the loan.

    Business loans with Moula come as a lump sum between $5,000 to $250,000 and have a 12-24 months repayment term. You can repay early the loan early with no penalty.

    If you prefer flexible access to a credit facility rather than a lump sum, Moula offers Moula Pay. You can use this Buy Now Pay Later style product with any participating Moula Pay merchant. Interest rates are 3% per month with the first 3 months being interest-free meaning if you clear your debt before this time, there will be no costs.

    To apply with Moula, your business needs to have 6 months of trading, earn $5,000+ in monthly sales and have GST registration if the yearly turnover is over $75,000.

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  • 6Prospa

  • Top For Large Low Doc Loans 

    Prospa offers a choice of two types of financial products, small business loans and business lines of credit.

    If you don’t have the time to prepare financial documents such as balance sheets and tax returns, Prospa offers low doc loans of up to $150,000. To get a loan without paperwork, you only need to provide your driver’s license number, ABN, and BSB, and account number so Prospa can verify you meet their qualification and perform a loan assessment.

    Small business loans with Prospa can be up to $300,000 and have a term of 3 to 36 months, with payments either daily or weekly. Choose this loan when you know how much funding you will need as interest rate costs apply throughout the loan. One thing to consider is that loans over $150,000 will require asset security.

    Funding for a business line of credit is between $2,000 and $150,000 and has a renewable 24-month term. A credit facility is ideal for managing cash flow, staff wages, unpaid invoices as you can access a credit facility on an as-need basis.

    When applying for a loan, your business must have been operating for 6 months and earn $6,000 p.m turnover.

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  • 7Banjo Loans

  • Easy Application With No Paperwork

    Banjo Loans offers 3 lending products, Working capital loans and Flexi working capital loans of $20,000 to $5000,000 with a 6 to 24-month term if your business has at least 2 years of trading history and earns $500,000+ p.a in revenue. The other product available is Banjo supply which are short terms loans between $5,000 and $25,000 for 30 to 90 days.

    Working capital loans and Flexi working capital loans are terms loan, the difference is Flexi loans are 12 or 16 months and 3 or 4 months of interest-only payment period. Working Capital loans as principal + interest rates.

    Business loan applications with Banjo have only 10 simple questions, need no paperwork, integrates with your accounting software, and accept electronic signatures which make for a fast and hassle-free process.  The lender’s technology will then access multiple sources of your business data so they can approve your loan in hours. All this means you can have your funds deposited into your account in as little as 24 hours.

    Banjo rewards good business, if your business has good creditworthiness and solid cash flow then the lender can offer better interest rate cost. You can also expect easy re-borrowing in the future as Banjo streamline the process for existing customers.

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  • 8Beyond Merchant Capital

  • Good Merchant Finance Up To $300k

    Beyond Merchant Capital offers unsecured business loans and merchant cash advances. Both products offer business lending between $10,000 and $300,000 as a lump sum payment, with the amount you can borrow being around 1 month of average turnover. Online application only takes ten minutes and has an 80% approval right.

    The difference between each product is the means used for the loan repayment. Business loans have automatic daily payment installments using direct debit while merchant finance takes a percentage (%) of your daily EFTPOS sales.

    Use of a merchant cash advance can be a good business plan if your business makes the bulk of sales through EFTPOS, debit cards, or credit card sales. This is because your daily repayments for the loan will vary in line with your sales, which have seasonal peaks and troughs throughout the year.

    One unique feature with Beyond Merchant Capital is that loan terms are not fixed and come with variable payments that they tailor for your business needs.

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  • 9GetCapital

  • Good Range Of Loans For All Needs

    GetCapital offers a range of finance options to meet the needs of all small business owners. Regardless if your business requires funding upfront as a lump sum or prefers the flexibility of a credit facility, GetCapital will have the right solution for your needs. The following type of loan options are available with GetCapital:

    • Business Overdrafts
    • Term Loans
    • Equipment Finance
    • Vehicle Finance,
    • Fitout Finance

    You can borrow up t0 $1,00,000. Business rate loan pricing for most products ranges from 9.95% to 19.95% (annual percentage rate). To qualify for a loan your business must have been operating for 2 or 3 years and have an annual turnover of $250,000.

    Applications can be done online in 5 minutes with funding possible on the same day or within 24 hours.

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  • 10Lumi

  • Fixed-Rate Loans For Transparency

    Choosing Lumi means no hidden fees and charges as the lender prides itself on total transparency. Lumi is a founding signatory of the industry’s code of lending practice SMART Box™ which means you will know the true cost of your loan in a plain and simple format. The SMART Box™ also has the benefit of allowing for realistic comparison with other lenders that comply with the code.

    Lumi’s first product is a small business loan. If you choose this, Lumi will advise your entire repayment amount upfront, as they don’t believe in variable interest rates. Your payments will follow an amortized payment schedule, which means you will pay the same amount every week. The only certain cost you will have is a 2.5% establishment fee that is deducted at settlement.

    The other product Lumi offer is a line of credit. This option is best if you want to maintain access to a credit facility. Using a credit line has a $25 activation fee for each drawdown and a $30 monthly subscription fee to maintain the facility. Along with your interest, which has a fixed rate and is calculated daily these are your only costs.

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Australian Fast Unsecured Business Loans

Unsecured business loans are a fast option for Australian business owners for cash flow relief. With no capital, businesses cannot grow so unsecured loans have become the most popular option for Australian small businesses in need of business finance. There are several reasons unsecured loans are popular including:

1. Access and ease

Traditional lenders have stringent criteria in order to qualify for a loan such as a minimum monthly turnover, time in the business of at least 3 months, and good creditworthiness.

Many small businesses struggle to meet the bank’s criteria and/or don’t have the means or time to prepare documents such as financial statements and credit history that banks require for proof. There is now a wealth of Fintech lenders with more relaxed eligibility criteria to access a loan. Some lenders will accept low doc or no doc loans and some will even lend if you have a poor credit score.

To qualify for a loan, unsecured lenders simply need your ABN number to show you have a minimum monthly turnover of $4,000 to $6,000 a month or an annual turnover of over $50,000+ per annum.
Unsecured loans also require a minimum trading history of 3 to 6 months and in some cases a minimum credit rating.

While unsecured loans have higher interest rates than secured loans, business owners often find the costs to get immediate finance to be a worthwhile sacrifice.

2. No need for collateral or assets

Many businesses do not have collateral or security to offer for a secured business loan. Many small business owners prefer unsecured loans over the risk of using personal property as security.

As a small business owner, it can be smarter to pay higher interest than lose your home, if the business cannot repay the loan

3. Easy application

Applications for unsecured loans can be done in less than 10 minutes with loans under $150,000 needing few supporting documents as they link directly to your financial accounts.

As a business with many competing priorities, an easy business loan application process is a big appeal.

4. Speed

Traditional lenders such as banks can take weeks and sometimes months to assess loan applications. The application process for unsecured loans takes advantage of technology to assess applications on the spot by checking the business creditworthiness and business data.

Some lenders can provide loan approval and provide business funding on the same business day.

5. Flexible and convenient loans

The market for unsecured business lenders is competitive, which means business borrowers can choose from a large range of unsecured business loans. Loan types small business owners can choose from include:

* Term loans
* Line of credit
* Bank overdrafts
* Merchant cash advance

Lenders can be flexible with the conditions of the loan they can offer. Loans can be as little as $5,000 and as high as $1,000,000. Repayment terms can also vary, with some being as long as 36 months with repayment schedules often being daily, weekly, or monthly.

What is a unsecured Business Loans

Unsecured Business Loans FAQs

Is a small business loan secured or unsecured?

Most short term loans in Australia are unsecured based on flexibility, faster approval times and a more straightforward loan application process. A secured loan is more suitable when the loan amount is higher and required on a long-term basis. Primarily businesses choose a secured loan when purchasing long term assets such as vehicles or equipment.

Can you get a small business loan with bad credit?

Yes, in most cases an Australian business with bad credit are eligible for an unsecured business loan. This is because eligibility is less based on the credit score of the business and more focused on working capital requirements and the ability to pay back the line of credit based on recent history. This is determined by viewing the borrower’s bank statements focusing on monthly turnover to access the creditworthiness of the business.

What happens if you default on an unsecured business loan?

When you default a business loan the lender may renegotiate business finance options or take the matter to court to collect the repayments. Some provider may also use a debt collection agency that goes through processes to collect the funds on the lender’s behalf. Additional fees will be charged on funds reclaimed and interest rates may be increased to cover default costs such as the debt collection agency.

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