Business loans to help you grow

Common types include term loans, lines of credit, equipment financing, invoice financing, and merchant cash advances. Each type serves different business needs.

Approval times can range from a few days to several weeks, depending on the lender and the complexity of the loan application.

The primary difference between secured and unsecured business loans lies in the requirement of collateral:

‍Secured Business Loans: These loans require collateral, which is an asset pledged by the borrower to secure the loan. Common types of collateral include real estate, equipment, inventory, or accounts receivable. Because the lender has the right to seize the collateral if you default on the loan, secured loans typically come with lower interest rates and higher borrowing limits. They are often easier to qualify for, especially for borrowers with less-than-perfect credit. The downside is the risk of losing your collateral if you cannot repay the loan.

‍Unsecured Business Loans: These loans do not require any collateral. Approval is based on your creditworthiness and the financial health of your business. Unsecured loans generally have higher interest rates and lower borrowing limits compared to secured loans because they pose a higher risk to the lender. They may also have stricter qualification requirements, including higher credit scores and stronger financial statements. The advantage is that there is no risk of losing assets if you default on the loan.

Choosing between a secured and unsecured business loan depends on your business’s financial situation, your credit history, and your willingness to risk assets. Secured loans might be preferable if you need a larger loan amount or lower interest rates, while unsecured loans are a good option if you do not have assets to pledge as collateral.

The amount you can borrow with a business loan depends on several factors, including the type of loan, the lender’s policies, and your business’s financial profile. Key considerations include:

‍Business Revenue: Lenders typically look at your annual revenue to determine how much you can borrow. A higher revenue can qualify you for a larger loan amount. Some lenders may offer loans that are a multiple of your monthly or annual revenue.

‍Creditworthiness: Both your personal and business credit scores play a significant role in determining your loan amount. Higher credit scores indicate lower risk and can lead to higher loan approvals.

‍Loan Type: Different types of business loans have different borrowing limits. For example, term loans and commercial mortgages usually offer larger amounts compared to lines of credit or equipment financing.

‍Collateral: For secured loans, the value of the collateral you provide can affect the loan amount. Lenders might offer up to 70-80% of the collateral’s value.

‍Debt-to-Income Ratio: Lenders assess your debt-to-income ratio to ensure you can handle additional debt. A lower ratio means you have more income relative to your debt, which can increase your borrowing capacity.

‍Financial Health: Comprehensive financial statements, including profit and loss statements and balance sheets, help lenders evaluate your business’s financial health and ability to repay the loan.

Typically, small business loans can range from $5,000 to $5 million or more, depending on these factors. It’s essential to present a strong application with detailed financial documentation to maximise your borrowing potential.

Eligibility for a business loan typically includes a strong credit score, a solid business history (usually at least one to two years in operation), and sufficient annual revenue to cover loan repayments. Lenders also look for detailed financial statements, tax returns, and a well-prepared business plan. Collateral might be required for secured loans. Meeting these criteria helps demonstrate your business’s financial stability and ability to repay the loan.

Yes, we support entrepreneurs and business owners across the nation, our brokers offer customised business loans tailored to your unique requirements. We help you fuel your business growth with strategic financial solutions, available wherever you operate in Australia.