Your Guide to Small Business Financing in Australia
Are you a small business owner seeking financing options? Tired of dealing with strict lending standards from traditional banks in Australia? Look no further than BusinessLoansReview.com.au, your comprehensive guide to finding the best unsecured small business loans in Australia. Compare various loan options and find the one that best suits your business needs and goals, without the hassle of navigating the traditional banking system.
Discover The Best Small Business Loans in Australia
The following are the best unsecured business loan lenders by our editorial rating. They all provide unsecured
finance and small business loans with high approval rate, quick application processing, while providing clarity
about the interest and repayment schedules.
Best Australian Business Finance Marketplace
- Fill Only One Form – Apply for Multiple Lenders
- Instant Online Approval or Rejection
- Comfortable Process for Non-Computer-Savvy
- Applicable for Low-Credit Businesses
- 4.8/5 Score on TrustPilot
- Tech Platform of the Year Award 2021
- Smart Matching by LendScore™
- Does Not Impact Credit Scores
- Large Variety of Loan Types (Secured / Unsecured)
- Bank-Level Encryption
- Member of the FBAA, CAFBA, and MFAA
- Highest Rated 2nd Year in a Row
- Doesn’t Operate During Weekends
- No Call Centre, All Online
Business Australian Lenders - In Detail
Top Quick Business Loans in Australia
We have set ourselves a target of comparing and reviewing some of the top non-bank business lenders offering quick-application quickfunding business loans in Australia. We want our readers, potential customers of such business finance services, to be able to understand the types of various loans and services that are provided to them by each online business finance provider in Australia, and the exact lending criteria that makes a small business eligible for funding.
This is our criteria when it comes to online business lenders:
✔ They are approved as a credit provider in Australia. That is the first thing anyone should consider before engaging in business
with any financial entity.
✔ They are offering unsecured business loans specifically.
✔ They are able to provide financing throughout Australia.
✔ We prefer big and diverse companies that are able to offer business loans to various types of small and medium enterprises. That
means there is a higher chance they willl be able to offer you something that meets your own requirements.
✔ There is a quick and easy application process. If you have come to this website, you must have been searching for a fast business
loan. The first part of being quick is being able to receive all the information required online in a simple and intuitive application.
✔ There is a quick response to each application, followed by quick financing (i.e. money in the bank). That is the second part of
providing fast business financing.
✔ There is easy tracking of your loan and a clear repayment schedule with no hidden fees and no fines on early repayments.
✔ A loan can be taken for any business use . For example, you can borrow funds from the lenders featured on this website to buy
machinery, fix machinery, recruit staff, buy vehicles, buy stock, buy inventory, or even acquire another company.
✔ A flexible loan amount is offered that can suit a business that needs money to buy stock the next day for $5,000, right through to
a more established firm that uses a $500,000 loan to acquire a smaller competitor.
✔ You are able to apply for loan with Become or Lend – that means that if that lender rejected your application, you will be
introduced to other business financing options.
Small Business Financing by Category
If you have more specific requests or requirements for the money you borrow, you may want to look at specific small business finance
categories. While the majority of online lenders reviewed and featured on our website are flexible and lend out money for almost any
purpose, there are certain lenders who specialise in certain types of small business financing. To learn more about the lenders view our
extensive small business loan comparison table.
Term Loans
This is a lump sum loan that is paid back over a set period of time with fixed or variable interest rates. Term loans can
Invoice Financing
This type of loan is based on the value of a company’s outstanding invoices. The lender advances a portion of the invoice amount, and the
Equipment Financing
This type of loan is used to purchase equipment for a business. The equipment itself serves as collateral for the loan, and the loan payments
Crowdfunding
This type of financing involves obtaining small amounts of money from a large number of people, typically through an online platform. Crowdfunding can be used
SBA Loans
The Small Business Administration (SBA) provides guarantees for loans made by participating lenders. SBA loans can be used for a variety of purposes, including working
Venture Capital
This type of financing is provided by venture capital firms, who invest in companies with high growth potential. Venture capital firms typically provide a combination
Learn about different types of business loans and finance
Term Loans
This is a lump sum loan that is paid back over a set period of time with fixed or variable interest rates. Term loans can
Invoice Financing
This type of loan is based on the value of a company’s outstanding invoices. The lender advances a portion of the invoice amount, and the
Equipment Financing
This type of loan is used to purchase equipment for a business. The equipment itself serves as collateral for the loan, and the loan payments
Crowdfunding
This type of financing involves obtaining small amounts of money from a large number of people, typically through an online platform. Crowdfunding can be used
SBA Loans
The Small Business Administration (SBA) provides guarantees for loans made by participating lenders. SBA loans can be used for a variety of purposes, including working
Venture Capital
This type of financing is provided by venture capital firms, who invest in companies with high growth potential. Venture capital firms typically provide a combination
Unsecured Small Business Loans FAQ
An unsecured small business loan is a loan that does not require collateral, such as property or assets, to secure the loan. Instead, the lender typically evaluates the creditworthiness of the borrower to determine the risk of default. You will also need cashflow records for at least the past 6 month.
Eligibility for an unsecured small business loan can vary depending on the lender, but generally, a small business owner with good credit and a solid financial track record may be eligible. Some lenders may also require the business to be in operation for a certain amount of time and have a minimum annual revenue.
The amount that can be borrowed with an unsecured small business loan can vary depending on the lender, but it is typically less than with a secured loan. Some lenders may offer loans ranging from a few thousand dollars to several hundred thousand dollars.
The interest rate for an unsecured small business loan can vary depending on the lender and the borrower’s creditworthiness. Typically, the interest rate for an unsecured loan is higher than for a secured loan, as the lender is taking on more risk without the security of collateral.
The repayment terms for an unsecured small business loan can vary depending on the lender, but they typically range from 1 to 5 years. Some lenders may offer flexible repayment terms that allow the borrower to choose a schedule that works best for their business.
The time it takes to get an unsecured small business loan can vary depending on the lender, but it can be as quick as one day or as long as several weeks. The time to get approved for a loan can also depend on the completeness and accuracy of the information provided by the borrower.
The documentation required to apply for an unsecured small business loan can vary depending on the lender, but typically, the borrower will need to provide financial statements, tax returns, and proof of business ownership. The lender may also ask for personal financial information, such as a personal credit report.
Manual Business Loan Comparison or Automated Finders?
Although our aim is to provide you with tools to learn about the best business financing providers in Australia, we did mention that there are a lot of factors involved in choosing the right provider for your own specific circumstances. This is why we recommend using Become or Valiant, services that were built on the idea of a smart algorithm that can enable you to find the financing you need and deserve, quickly. The only thing you need to do is fill in your details once and then receive offers from only the most relevant, approved business lenders. This is an especially useful tool if your business is newer or you have a bad credit score since only a smaller subset of lenders will accept such a business. But remember – there are no guaranteed approvals!
Step 4: Read Reviews
Australian Small Business Lender Reviews
Prospa Review
Prospa, located in Darlinghurst, New South Wales, is the most respected alternative business lender in Australia. With awards such as Winner – FinTech Lender of the Year, MFAA Excellence Awards 2019, #5 Deloitte Technology Fast 50 Australia 2018, #1 Financial Times 1000 High Growth Company 2018 and Lending Innovator of the Year 2017, the firm is definitely recognised as such. Due to its tremendous Prospa, located in Darlinghurst, New South Wales, is the most respected alternative business lender in Australia. With awards such as Winner – FinTech Lender of the Year, MFAA Excellence Awards 2019, #5 Deloitte Technology Fast 50 Australia 2018, #1 Financial Times 1000 High Growth Company 2018 and Lending Innovator of the Year 2017, the firm is definitely recognised as such. Due to its tremendous growth Prospa is the first Australian lender to have registered on the ASX. As a result Prospa is completely transparent with its performance and lending metrics and even goes one step above by being the most transparent online lender with regards to its pricing. Unique to Prospa, their interest rate ranges for each product are clearly detailed on their website. Since inception, Prospa has funded over $1.2 billion to over 20,000 small businesses in Australia! Aside from being one of the most trusted brands in the industry, the firm also offers a great deal of flexibility and has positioned itself to be one of the quickest business lenders in Australia and even globally. You’re likely to get a response to your application within hours. Prospa is in a league of its own when it comes to customer reviews. With a 4.7 / 5 score on Google and a truly astonishing 4.9 / 5 on TrustPilot (based on over 4,250 reviews!), there is no doubt that Prospa, in the eyes of the customer, is the best at what it does. When we searched online specifically for complaints, we could only locate two verified customers in total through all channels. This is extremely unique in the financial services industry. Prospa is a great choice for anyone requiring an unsecured or secured business loan of $5,000 to $300,000. Prospa offers unsecured business loans for businesses with at least six months in operation
Prospa Review
Prospa, located in Darlinghurst, New South Wales, is the most respected alternative business lender in Australia. With awards such as Winner – FinTech Lender of the Year, MFAA Excellence Awards 2019, #5 Deloitte Technology Fast 50 Australia 2018, #1 Financial Times 1000 High Growth Company 2018 and Lending Innovator of the Year 2017, the firm is definitely recognised as such. Due to its tremendous Prospa, located in Darlinghurst, New South Wales, is the most respected alternative business lender in Australia. With awards such as Winner – FinTech Lender of the Year, MFAA Excellence Awards 2019, #5 Deloitte Technology Fast 50 Australia 2018, #1 Financial Times 1000 High Growth Company 2018 and Lending Innovator of the Year 2017, the firm is definitely recognised as such. Due to its tremendous growth Prospa is the first Australian lender to have registered on the ASX. As a result Prospa is completely transparent with its performance and lending metrics and even goes one step above by being the most transparent online lender with regards to its pricing. Unique to Prospa, their interest rate ranges for each product are clearly detailed on their website. Since inception, Prospa has funded over $1.2 billion to over 20,000 small businesses in Australia! Aside from being one of the most trusted brands in the industry, the firm also offers a great deal of flexibility and has positioned itself to be one of the quickest business lenders in Australia and even globally. You’re likely to get a response to your application within hours. Prospa is in a league of its own when it comes to customer reviews. With a 4.7 / 5 score on Google and a truly astonishing 4.9 / 5 on TrustPilot (based on over 4,250 reviews!), there is no doubt that Prospa, in the eyes of the customer, is the best at what it does. When we searched online specifically for complaints, we could only locate two verified customers in total through all channels. This is extremely unique in the financial services industry. Prospa is a great choice for anyone requiring an unsecured or secured business loan of $5,000 to $300,000. Prospa offers unsecured business loans for businesses with at least six months in operation
Compare Now With Additional Reviews for Australian Business Financing:
- Speedy Finance Review
- Max Funding Review
- Lend.com.au Review
- Business Fuel Review
- Captrove Review
- HomeSec Review
- Valiant Review
- Zip Business Loans (SpotCap) Review
- Sail Review
- Speedy Finance Review
- Max Funding Review
- Lend.com.au Review
- Business Fuel Review
- Captrove Review
- HomeSec Review
- Valiant Review
- Zip Business Loans (SpotCap) Review
- Sail Review
- Speedy Finance Review
- Max Funding Review
- Lend.com.au Review
- Business Fuel Review
- Captrove Review
- HomeSec Review
- Valiant Review
- Zip Business Loans (SpotCap) Review
- Sail Review
With an alternative business lender, the decision on your loan is made within as little as 24 hours of application. Much of the
application processing is done online through a sophisticated algorithm.
With small business alternative funding, the decision on whether to offer you a loan and under what conditions will depend on their
independent analysis. They may factor in your credit score, but this is not the only determining factor. You will receive the loan quickly
once the decision has been made (even on the same business day).
Read more on this topic
Term Loans
This is a lump sum loan that is paid back over a set period of time with fixed or variable interest rates. Term loans can
Invoice Financing
This type of loan is based on the value of a company’s outstanding invoices. The lender advances a portion of the invoice amount, and the
Equipment Financing
This type of loan is used to purchase equipment for a business. The equipment itself serves as collateral for the loan, and the loan payments
Crowdfunding
This type of financing involves obtaining small amounts of money from a large number of people, typically through an online platform. Crowdfunding can be used
SBA Loans
The Small Business Administration (SBA) provides guarantees for loans made by participating lenders. SBA loans can be used for a variety of purposes, including working
Venture Capital
This type of financing is provided by venture capital firms, who invest in companies with high growth potential. Venture capital firms typically provide a combination
Step 5: Master The Do’s and Don’ts of SME Financing in Australia
There are plenty of cautionary tales for us to tell you about small business lending. If you thought financing was purely about finding the cheapest rate , then it would be wise to think again. Making a mistake in such a critical aspect of your business can make or break you.
- Do not borrow money that you are unsure you can repay. The eventuality of this will become a real burden in your business career
and personal life. - Do not borrow money if you don’t need it. Consider other alternatives before jumping on a small business loan.
- Do extensive research to understand your options. Don’t jump the gun unless you really have to.
- Realise that the industry works like this: The more urgently you need the funds and the worse your position is (for example, bad
credit) the higher the interest rate will be. - The commercial lending industry is not regulated in the same manner as personal loans. The regulatory authorities believe that as
a business owner, you’re in a much less vulnerable position than an individual and should, in theory, be more educated about these
topics. - Make a sober decision about whether to use banks or alternative business lenders to fund your business. Read the guide below,
which is intended as a starting point for business loan newcomers
For Business Funding Newcomers
We believe the best way is to start off by explaining how this industry works and to lay out the pros and cons of alternative (non-bank) small business loans against a bank business loan. Below are the differences you will experience when dealing with the lenders listed on this website in comparison to Australian banks like Commonwealth, Westpac, ING, ANZ, or Suncorp.
Comparing Australian Alternative Funding to Bank Loans
Non-Bank Lenders
With an alternative business lender, the decision on your loan is made within as little as 24 hours of application. Much of the application processing is done online through a sophisticated algorithm. With small business alternative funding, the decision on whether to offer you a loan and under what conditions will depend on their independent analysis. They may factor in your credit score, but this is not the only determining factor. You will receive the loan quickly once the decision has been made (even on the same business day). With business financing companies, you should receive a clear repayment schedule with no hidden fees in the simplest and most coherent way possible. There are no early repayment fines of any sort. With alternative lenders in Australia, you should be able to score an unsecured small business loan if you desire one (and speak to the right lender that offers such financing). With banks, you always need to present securities for the financing you will receive. With business financing companies, you would pay, on average, higher interest than with banks.
Business Bank Loans
With an alternative business lender, the decision on your loan is made within as little as 24 hours of application. Much of the application processing is done online through a sophisticated algorithm. With small business alternative funding, the decision on whether to offer you a loan and under what conditions will depend on their independent analysis. They may factor in your credit score, but this is not the only determining factor. You will receive the loan quickly once the decision has been made (even on the same business day). With business financing companies, you should receive a clear repayment schedule with no hidden fees in the simplest and most coherent way possible. There are no early repayment fines of any sort. With alternative lenders in Australia, you should be able to score an unsecured small business loan if you desire one (and speak to the right lender that offers such financing). With banks, you always need to present securities for the financing you will receive. With business financing companies, you would pay, on average, higher interest than with banks.
Summary of Comparison: Banks Vs. Non-Bank Lenders
Non-Bank Lenders
With an alternative business lender, the decision on your loan is made within as little as 24 hours of application. Much of the application processing is done online through a sophisticated algorithm. With small business alternative funding, the decision on whether to offer you a loan and under what conditions will depend on their independent analysis. They may factor in your credit score, but this is not the only determining factor. You will receive the loan quickly once the decision has been made (even on the same business day). With business financing companies, you should receive a clear repayment schedule with no hidden fees in the simplest and most coherent way possible. There are no early repayment fines of any sort. With alternative lenders in Australia, you should be able to score an unsecured small business loan if you desire one (and speak to the right lender that offers such financing). With banks, you always need to present securities for the financing you will receive. With business financing companies, you would pay, on average, higher interest than with banks.
Business Bank Loans
With an alternative business lender, the decision on your loan is made within as little as 24 hours of application. Much of the application processing is done online through a sophisticated algorithm. With small business alternative funding, the decision on whether to offer you a loan and under what conditions will depend on their independent analysis. They may factor in your credit score, but this is not the only determining factor. You will receive the loan quickly once the decision has been made (even on the same business day). With business financing companies, you should receive a clear repayment schedule with no hidden fees in the simplest and most coherent way possible. There are no early repayment fines of any sort. With alternative lenders in Australia, you should be able to score an unsecured small business loan if you desire one (and speak to the right lender that offers such financing). With banks, you always need to present securities for the financing you will receive. With business financing companies, you would pay, on average, higher interest than with banks.
Read more about the differences between applying for a bank loan and applying for a loan with an online lender here – online lenders vs bank loans.
Concluding Words on Unsecured Business Financing
We have reviewed more than 25 different Australia-based business loan opportunities, all of which offer unsecured small business loans. They are all credible, effective, and quick. Other similarities between the Australian non-bank funding companies include relatively high interest, strict minimum requirements, and small loan amounts in comparison to revenues (usually up to one month of revenues in financing).
It is not an easy, cheap, and effort-free process to get a small business loan, and you should conduct a comprehensive research to decide which of the SME finance lenders provide the best business loans for your needs.