Unsecured Business Loans

To get an unsecured business loan, you need to meet some basic qualification criteria. To be eligible for an unsecured business loan, you must:

• Have an active ABN;
• Be operating for more than 6 months; and
• Be turning over more than $5,000 per month in the last 6 months.

With the advent of technology, the unsecured business loan application has become simple and paperless without any hassle to take any printouts. All you need is to submit some basic details related to your business by completing the online application form and last 6 months bank statement of your business through a secured link provided by us.

In most of the cases, for an unsecured business loan up to $250,000 you just need to submit a 6 months bank statement and a valid Identification proof to get an approval.

For complex or large ticket loans above $250,000, you would generally be required to submit the financial statements, BAS and ATO transaction statements.

The lenders understand the nature of urgency for small business owners. You may get the funds into your account within 3-4 hours as well. On average it generally takes 24-48 hours to get an unsecured business loan approved.

The interest rate charged by the lenders differs from case to case depending on various risks associated with the business, like Industry, cash flow, credit history, asset ownership and term of the loan.

For e.g. A borrower with poor credit history would be charged a higher rate of interest as compared to a borrower with a good credit history. However, in general the interest rates typically range between 10-20% p.a.

Generally, unsecured business loans are for shorter terms and can be anywhere between 3 months – 36 months. In most of the cases, unsecured business loans are offered for a 12-month period.

A Personal Guarantee (PG) is a legal binding contract from the key person /owner of the business as individually agreeing to be personally liable if the business cannot repay the debt.

Though you do not need to be asset backed for an unsecured business loan, a lender would require personal guarantee from the director/promoter of the business to mitigate their risks to an extent.

Lenders would run a credit check only after obtaining a consent from you.

The loan application is obligation free and there are no application costs involved. You’ll be charged an origination fee only after your loan is approved and disbursed into your account. The origination fees differ from lender to lender and generally ranges between 2%-4% of the loan amount. The origination fee is a one-off fee and is on top of normal interest charged on the loan amount. Please contact us if you wish to know more details about the application process.

We have lenders on our panel who generally lend to almost every sector, so essentially there are no restrictions (barring a very few industries). In case you are sceptical about whether you can get funded in your industry or not, please let in touch for a free consultation with one of our lending experts.

With advancement in technology, submitting a bank statement has become super quick and easy without compromising the security. On receipt of the loan application, we would provide you with a safe and secure link to share your bank statement with us. This process makes the loan approval smooth and fast as we can receive your bank statement within minutes and proceed with the loan approval process instantly.

Please note: With increasing fraud and forged documentation, lenders are no longer accepting PDF bank statements

Generally, lenders consider the cash flow of the business to arrive at your borrowing power. They look into various other fields such as your credit score, past bank dishonours, industry, number of years in the business, age of the promoter/directors, existing personal asset/liabilities etc. to make a lending decision on the file.

An unsecured business loan may not always be the right option for your business as you may have higher funding requirements, be looking for cheaper interest rates, or looking for a more flexible business loan product. There are various alternative business loan options which we can help you with. Some of the popular options are  secured business loan, business line of credit, debtors finance and invoice finance facilities. Please reach out to us on 1300 253 041 or send us a message. One of our lending specialists would get in touch in no time to assist you.

Getting a business loan with bad credit history could be tough and expensive; however, it’s not impossible. We have tie up with lenders who are happy to look at businesses who had bad credit history in the past but have robust cash flow at present. Please get in touch with us for a free consultation.

At Broc Finance, we endeavour to get the most adequate facility suitable to the business requirements of our clients. In most of the cases logged in through us, we try to get an indicative offer from the lender for our client’s consideration before proceeding with formal application and consent to credit check. This approach helps our clients to avoid unwanted rejections and credit checks which can significantly impact their credit score.

We would be happy to answer, if you have any other questions. Please contact us.