Unsecured Business Loans
No Doc and No Credit Checks
Unsecured Business Credit
Same Day Approvals
No Hidden Fees
Hassle Free Process
Serving Since 2001
Lending All Across Australia
Table of Contents
- What is an Unsecured Business Loan?
- Unsecured Business Loans Versus Secured Business Loans
- How do Unsecured Business Loans work in Australia?
- What are the Requirements and How to Apply?
- Why should you choose an Unsecured Business Loan?
- Unsecured loans with Bad Credit?
- What are the Benefits of an unsecured business loan?
- Case Study: Bank Rejected Customer in Melbourne
- Frequently Asked Questions (FAQs)
What is an Unsecured Business 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.
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!
With flexible options up funding is possible in 24 hours
Why should you choose an Unsecured Business Loan?
Unsecured loans with Bad Credit?
What are the Benefits of an unsecured business 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
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?"
What kind of information do I need to provide and how do I qualify?
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?
How are repayments structured?
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?
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.
Talk to a business lending specialist
Leave your details below and one of our Business Lending Specialists will get in touch right away.