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A loan is generally borrowed for two purposes, either for personal use or for business use. The loan borrowed for business use is known as a business loan.
Business use could be any business-related expenses like buying stock/inventory, paying wages, rent, marketing expense, renovations/fit outs, purchasing equipment, expansion or other day to day working capital needs. Unlike loans for personal use, you would mandatorily require an active ABN to apply for a business loan.
However, there are few secured business loan products where you don’t require to be trading for a minimum period or be generating any revenue.
In case you are a start-up business or planning to start/buy a business without any trading history or revenue stream, please contact us to discuss your scenario and best suited business loan product for you.
Unsecured business loans are one of the most popular business loan options specially for small business owners. An unsecured business loan can be obtained without the need of pledging any asset as a security.
Business loans backed by security can help businesses in getting ideal loan amounts with favourable terms, because they are considered less risky as compared to an unsecured business loan by the lenders.
There are various business loan products available in the market, and the eligibility criteria depends on the loan product you are looking for. Generally, to be eligible for a business loan, you need to:
There are business loan products where you don’t require to be trading for a minimum period or be generating any revenue. In case you are a start-up business or planning to buy a business, please contact us to discuss your scenario and find best suited business loan product for you.
Gone are the days when there used to be long application forms to be filled manually to apply for a business loan. Apart from the long application forms, you were required to submit number of documents and it used to take weeks or even months to get an approval.
Check the basic loan eligibility of your business and complete the application form which takes 60 seconds
Once you complete your application form. We get in touch to discuss your business requirement and advice the documents required.
Once we get all the documents required, we login your application with the most suited lender and get the loan approval
in as low as 24 hours.
Business loans are essential requirements for any business looking for a growth. Sooner or later all the businesses come across a phase where they need to borrow from external sources like lenders, venture capitalists etc to transition into next phase of the grow. Generally business loans are one of the easiest ways to secure timely funding. However, at times, it becomes a tedious and time-consuming task to compare and choose from the right business loan product for your business.
To save you some time from hassle of going through each business loan product separately and decide on the right fit solution, we have summarized the top 10 business loans in Australia.
A small business loan is a financing option that provides a lump sum of cash in exchange for future repayment of the principal and interest.
They are meant to provide financial assistance to your business. There are daily/weekly/fortnightly repayment options available which makes payback very convenient considering the nature and scale of small businesses.
Small business loans come in many forms, whether you are trying to start a business you have always been passionate about, considering an exciting opportunity to expand your company or simply trying to get over a seasonal setback, there will be one that suits your needs.
Unsecured business loans are one of the most popular business loan options specially for small business owners. An unsecured business loan can be obtained without the need of pledging any asset as a security.
Secured business loans are backed by security in any form. Business loans backed by security can help businesses in getting ideal loan amounts with favourable terms, because they are considered less risky as compared to an unsecured business loan by the lenders.
A business line of credit works like a credit card. Under this loan product, the lender provides an ongoing commitment to a business by setting up a certain limit and business can use these funds based on their requirements. The business is free to draw and repay back the loan as and when needed. The lender only charge interest on the funds utilised by the business.
An invoice finance facility allows you to access funds in advance against your invoices.
The lender approves a limit on your business, and you can draw funds against your invoices within the set limit. Once, the invoice is paid, it gets set off against the amount borrowed in advance and balance is paid back to you net of charges.
An invoice finance is also commonly known as “Invoice Discounting” or “invoice Factoring” facility.
A debtor finance facility is often used interchangeably with an invoice finance facility as there’s not much difference between both these products. Under debtor finance, the lender provides a limit against the accounts receivables ledger of the business.
Businesses can get financed up to 80-85% of their receivable ledger. The limit is secured by receivables ledger, and they don’t require to provide any additional real estate security.
Debtors finance is also commonly known as “Receivables Finance” or “Debtors factoring’.
A Trade finance limit enables you to pay your supplier upfront or in advance before receiving goods. You can get up to 100% of your supplier’s invoice funded and have flexibility to repay up to 150 days term.
A trade finance is also called as supplier finance.
This business loan product is availed by businesses which requires to purchase a vehicle or equipment for the business use. A vehicle or equipment loan is backed by the underlying asset to be purchased so no additional real estate security is required.
A start-up business loan is for businesses which are yet to start trading or generally trading for lesser than 12 months. These business loans are generally secured in nature and need to be backed by a real estate security. The term for these businesses range between 3-24 months.
Every business goes through a bad phase, and some can end up ruining their credit history in the process of recovery. This loan product is especially designed for such businesses to give them a second chance. If the business has a healthy cash flow in present but are turned down by lenders due to past bad credit history. The good news is, there are lenders who specialise in helping such businesses to get back on feet with the much-needed funding as well as give them an opportunity to improve their credit history through timely repayment of the loan.
A quick synopsis of the top 10 business loans in Australia has been presented in the comparison table below.
| Business Loans | Borrowing Limits | Interest rate | Term | Funding Timeframes |
|---|---|---|---|---|
| Small Business Loans | $5k – $1M | Starts from 5.50% p.a. | 3 months – 36 months | 24 – 48 hours |
| Unsecured Business Loans | $5k – $500k | Starts from 5.50% p.a. | 3 months – 36 months | 24 – 48 hours |
| Secured Business/property Loans | Starts from $20k | Starts from 4.99% p.a. | Up to 25 years | 3-7 days |
| Business Line of Credit | $5k – $750k | Starts from 5.50% p.a. | Revolving up to 5 years | 24 – 48 hours |
| Invoice Finance | $10k – $150M | Starts from 4.95% p.a. | Ongoing | 24-72 hours |
| Debtors Finance | $10k – $150M | Starts from 4.95% p.a. | Ongoing | 24-72 hours |
| Trade Finance | $10k – $150M | Starts from 4.95% p.a. | Ongoing | 24-72 hours |
| Vehicle and Equipment Finance | $10k – $1M | Starts from 4.50% p.a. | 2 – 5 years | 24-48 hours |
| Bad Credit Business Loans | $5k- $500k | Starts from 1.5% p.m. | 3-12 months | 24-48 hours |
| Start-up Business Loans | $20k – $30M | Starts from 1.5% p.m. | 3-24 months | 3-7 days |
*The information provided in critical information sheet is intended as a guide only. Please contact us for more information.
Small Business Loans
Unsecured Business Loans
Secured Business Property Loans
Business Line of Cridet:
Invoice Finance
Debtors Finance
Trade Finance
Vehicle and Equipment Finance
Bad Credit Business Loans
Start-up Business Loans
$5k – $1M
$5k – $500k
Starts from $20k
$5k – $750k
$10k – $150M
$10k – $150M
$10k – $150M
$10k – $1M
$5k- $500k
$20k – $30M
Starts from 5.50% p.a.
Starts from 5.50% p.a.
Starts from 4.99% p.a.
Starts from 5.50% p.a.
Starts from 4.95% p.a.
Starts from 4.95% p.a.
Starts from 4.95% p.a.
Starts from 4.50% p.a.
Starts from 1.5% p.m.
Starts from 1.5% p.m.
3 months – 36 months
3 months – 36 months
Up to 25 years
Revolving up to 5 years
Ongoing
Ongoing
Ongoing
2 – 5 years
3-12 months
3-24 months
24 – 48 hours
24 – 48 hours
3-7 days
24 – 48 hours
24-72 hours
24-72 hours
24-72 hours
24-48 hours
24-48 hours
3-7 days
People may take loans for several reasons, however broadly speaking, it could be either for personal purpose or for business purpose. A loan taken for personal purpose could be a home loan or a car loan or a personal loan. Similarly, a business purpose loan could be a term business loan, business line of credit, invoice finance or any other business loan products mentioned above. Both these loans are different from each other in various aspects like nature, usage, amount, term etc. Some of the key differences between both are listed below.
To qualify for a business loan, you at least need to hold an active ABN.
However, generally, to be eligible for a business loan, you need to:
The borrowing capacity of your business depends on various factors like the cash flow position, turnover, financial strength, industry, credit history of the business. If you wish to know your loan eligibility criteria, please send us an enquiry and one of our lending specialists will get in touch to discuss your scenario and suggest an indicative quote for your business.
The timeframe to get a business loan depends on the business loan product you are looking for. However, there are business loan which can get approved within as low as 24 hours.
You need to understand the nature of your business and its financing requirements to select the right product for your business. To highlight few of the factors, you need to assess whether it’s a long term or short-term requirement, seasonal or ongoing requirement, does your business have delayed invoice payment issues etc. We understand that choosing business loan product from the range of options could be a stressful task and hence, we provide an obligation free personal consultation to our customers to understand their requirements and suggest the best suited option for their business.
Yes, absolutely, you can get a business loan either to start a new business or buy an existing business if you hold an active ABN. However, there are limited options for new or start-up business loans and you would require pledging an asset as a security.
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 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. Please feel free to contact us if you have any other questions. We would be more than happy to answer it.
Contact us today and discover how our expertise can help your small business thrive.
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Credit Representative number 540795 is Authorised under Australian Credit Licence Number 389328