Australian Fast Unsecured Business Loans

  • Updated: 24/05/2021
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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.

Fast Business Loans provides factual information about lending products for businesses. Information provided is taken from the lender's website or by contacting the lender's support for information. While we make efforts to ensure the information is accurate and up-to-date, the information provided published on this website should be treated as of general nature so
1. Fast Business Loans cannot guarantee information provided on our website matches details on the lender's website
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