Unsecured Business Loans

Unsecured business loans are unsecured lines of credit for small and medium-sized businesses that put your business at ease, so you can focus on growing your business.

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Unsecured Business Credit

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Serving Since 2001

Lending All Across Australia

Unsecured business loans are typically more flexible than secured loans, but they are still based on your personal credit history. Unsecured loans may require no collateral to be transferred.
Hundreds of lenders will offer you unsecured business loans to grow your business. However, the amount of money you receive is evaluated against your cash flow and capability to pay it back. The rise of Fintech-based lenders in Australia has shifted from traditional loans to unsecured financing due to flexibility. Private lenders are alternative business lenders that fill the gap by offering a tailored solution for small businesses – offering them quick business loans without getting into too many financial complexities.

What is an Unsecured Business Loan?

An unsecured business loan is a loan that does not require collateral or a guarantor. This type of loan can be used to purchase inventory and pay for employee costs and other business expenses. Unsecured business loans are typically used by small businesses that have limited credit history and aren’t able to qualify for a secured loan.

However, you can use this type of loan for any purpose, including buying equipment or starting a new venture.

The unsecured business loan is granted without collateral or assets solely on how the business performs over time. But the borrower must have a steady credit score, an outstanding financial history, and adequate financial forecasts for cash flows. However, since private lenders are at greater risk, the interest rates on such loans are mostly a little higher than other types of loans.

Most people acquire unsecured loans to boost their small-time business and for shorter periods. The repayment tenure can be between three (3) months to five (5) years, depending on your feasibility. As for the loan amount range, you can acquire a loan between $6,000 to $600,000 depending on the size of your business.

Unsecured Business Loans Versus Secured Business Loans

There are two types of business loans: secured and unsecured. A secured loan will require collateral before you receive the money. For example, if you get a $100,000 loan from a bank, they may require that you put up property as collateral against it so they can lend money to you without worrying about losing their money if something goes wrong with your business.

An unsecured loan is one where there are no such requirements; therefore, it’s much easier to get approved for one. However, there are still some things to consider when applying for an unsecured business loan versus an unsecured personal loan or credit card debt.

How do Unsecured Business Loans work in Australia?

This type of loan can be used for a wide range of purposes, including relocating overseas, buying a new home, or even starting a small business.

  • You can apply for an unsecured personal loan online through
  • The application process is straightforward, and it only takes a few minutes to complete.
  • There are no credit checks or other checks required during this process.
  • It is also important to note that there are some restrictions on how much money you can borrow with an unsecured personal loan in Australia, so make sure that you check this information before applying for one.
  • There are many different types of unsecured personal loans available in Australia at the moment, so make sure that you compare them all before making your decision about which one will suit your needs best.

What are the Requirements and How to Apply?

Here is the list of things that you will need to submit your application for an unsecured business loan:

  • Active ABN or ACN.
  • Six (6) months old businesses can apply.
  • Your business must have monthly sales of $6,000 at a minimum.
  • After a quick initial assessment of the application, the lender may ask for additional information to confirm the credit score.

Rapid Processing

Be prepared: First, go through the eligibility criteria and arrange all the necessary documents. This is the first step, if you are unable to produce authentic documents, your application will be rejected.

Start by logging into Online Banking: Once you have gathered all documents, then state the reason(s) to acquire and the purpose of the loan. This will help the lender understand how serious of a borrower you are.

Get approval: Once you have applied, it will take about a few minutes or so to get approval. If approved, a confirmation email containing a loan contract will be sent to you. The email should have all the essential details about the applied loan.

You can begin using the loan: This is the happiest step. Once the first three steps are completed, you will instantly receive the loan in your bank account. The transaction period after approval is normally one (1) business day. Therefore, read the contract, sign it and return it – as soon as you do that, you will receive the money.

**Important** It is very important to read the entire contract, understand it, and only then sign it.

Already made up your mind? Awesome.

Contact us and we will make the process very simple and easy for you!

Flexibility

With flexible options up funding is possible in 24 hours

Support

Common sense credit approval process. Fast and fuss free funding on your terms

Confidence

No hidden fees and or charges. Clear & upfront pricing

Why should you choose an Unsecured Business Loan?

One reason is instant acquisition. There are no complex steps, and no dive-deeper verification, just provide essential documents and you will get the loan. In addition, unlike secure loans, the borrower is not bound to provide assets, property, inventory, equipment or any sort of guarantee to the lender for repayment.

Unsecured loans with Bad Credit?

With a bad credit score, you will most likely be unable to obtain financing for your company. However, in certain scenarios, when you’re able to prove your case and create a solid commercial case for yourself, it may be possible to obtain an unsecured business loan.

What are the Benefits of an unsecured business loan?

Since there isn’t any collateral as security, unsecured business loans have higher interest rates than secured business loans. Therefore, you will have to pay more interest throughout the loan, making it more costly than a conventional secured loan.

Unsecured business loans are challenging for businesses because the lender solely determines approval based on the strength and credit score of your business.

Case Study: Bank Rejected Customer in Melbourne

One of our prominent customers was doing business in Melbourne and learned about the unsecured loan for the business program offered by the government. He immediately approached the bank to obtain money under the federal government’s business loan program application but got refused.

He had provided all the required documents. He was running a successful business with tremendous growth before the pandemic swept the globe throughout Australia followed by a lockdown.

He also had an excellent credit rating and a long-lasting relationship with the bank.

Nevertheless, the bank insisted on obtaining a business loan against collateral; no matter which property documents, other banks provided the same response. In addition, the customer was not ready to offer any property documentation.

Then he went online and found Basic Finance. He immediately contacted us and proceeded with an assessment for the loan and within two days, the loan request was approved.

With the timely financing of this company, turnover increased by an incredible length. Hence, business got back on the right prospering track.

Frequently Asked Questions (FAQs)

What can I do with an unsecured business loan?

To boost your business, you can acquire an unsecured business loan for the following most common reasons:

  • Equipment or inventory purchased
  • Remodel or build new buildings
  • Employ new employees or pay for marketing
  • Control the flow of cash
  • Make payments for debts related to business like ATO debt.

An unsecured loan might be the solution to all your financial worries. With a much simpler approval procedure and less paperwork, you can have the flexibility to utilise the money for the purpose your business requires.

What exactly is "unsecured?"

Unsecured in the loan genre means that we do not require any asset or guarantee from you against the loan. However, for corporate lenders, directorial guarantees are very important.

What kind of information do I need to provide and how do I qualify?

To submit your application for the unsecured business loan, you must provide a few documents. These documents should have proof of your income and expense; and the last six (6) months’ bank statement. Unsecured loans are the most suitable option for a specific circumstance.

I was offered a conditional deal for a non-secured business loan on my online banking. However, it has since changed or vanished. Is it still available?

The conditional terms are determined regularly using your financial information at a specific date. Whereas if your financial situation changes, it could impact your borrowing capacity and result in the rejection of any conditional offer.

How are repayments structured?

The interest rate influences most repayments tables. However, it is applied against the balance outstanding on the small business loan. There are no hidden charges or charges.

With reputable lenders, from the beginning, you are aware of the repayments. They offer honest, transparent pricing. In contrast to a business line credit or an overdraft for business, you could see the complete picture of when the loan is paid back based on the scheduled payment.

Additionally, the interest rate is calculated based on the company’s performance and associated risk. In general, unsecured business loans are riskier than secured business loans. Therefore, they are subject to a higher interest rate. But unsecured business loans are evaluated based on the performance of your business. It’s never an all-inclusive approach.

If you’re a start-up company, you’ll need at least six (6) to twelve (12) months of records before applying for an unsecured business loan. For new start-ups, the lender is at high-risk in providing early-stage finance. They can offer loans to growing start-ups with a minimum of 6 months of handsome sales.

Unsecured loans in Australia have helped hundreds of companies across all sectors in the said country.

Can I still apply if I don't use Xero accounting software?

If you’re an existing Zip Funding customer with a condition of approval, you can still apply even if you don’t use Xero Accounting software.

However, If you do not have a condition of approval and do not use Xero Accounting software, then you may want to contact our support to help you out with it.

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