Unsecured business loans
Unsecured business loans
- Up to $250k without collateral
- Up to 36-month term (typically 12-month term)
- Used for any business purpose
- Trading for a minimum of 3 months
- Quick approval process
- Same day funding
- Rates change from lender to lender subjected to application strength
Please use the loan calculator and fill out the contact form. Our experienced finance brokers will get in touch with you to discuss your needs
Unsecured business loan: definition
Unsecured business loans allow a business in Australia to get money for business purposes without the need to provide any collateral. This type of loan can help to make the best of the seasonal ups and downs. Unsecured business loans are generally not secured against the assets of the business. Most of the time, the lender assess the application based on the business cash flow and the borrower’s credit history. Financial institutions such as banks are usually stricter in terms of lending funds than alternative lenders who are willing to take a higher risk. This is one of the reasons why finance provided by alternative lenders is provided at a higher rate than the banks due to the greater risk they are generally taking. Furthermore, lower interest rates are available for secured business loans, as the lenders have security they can access via a property, vehicle or some type of equipment.
Unsecured business loans: repayment terms
Unsecured business loans: benefits
Unsecured business loan: other benefits
Quick and easy application process
Relationship building with a lender
Improved business credit score
No personal or business collateral required
Fast access to the funds
Simple to get access to
Unsecured business loans: disadvantages
- The lender still allows access to the credit funds but the downside is that generally a higher interest rate is applied to the loan. Keeping the repayment terms as shortest as possible allows a business to pay less interest and therefore to reduce the cost of the loan.
- Personal guarantees – this is often expected to be provided through a director’s guarantee as a part of the unsecured business loan.
- Short term loans: lenders want to reduce their risk, and they approve the application based on a short-term repayment plan.
- Repayment penalties: if a business wants to repay the debt before the end of the loan term, in some cases, the lender’s terms and conditions include penalties to the borrowers. The reason for that is straightforward: lenders do not want to lose out on potential interest that they will obtain for the full duration of the unsecured business loan.
Unsecured business loans: refusal reasons
At Lending Connect, we work with many lenders, and over the years, we have developed a strong relationship with them. We know precisely what their lending criteria are. Contact us to check your eligibility. We are a finance broker, and we put our client’s interest first. As a result of that our refusal rate is very low because we know what lender is suitable for our clients. However, the final decision on approving an unsecured business loan is not on us. From our experience, the most common reasons for refusing unsecured business loans are:
Inconsistent Revenue
Outstanding repayments
Business open too recently
Weakening Industry
Seasonal Business
Low credit score
Unsecured business loan: how to apply
Thanks to our industry knowledge, we guide you through the process to find the lender that can provide the type and size of business loan that you are looking for. Our lenders are business specialists and are dedicated to funding eligible small businesses with unsecured business loans. Let us help you to find the one that best suit your needs. It all starts with an enquiry. Call Lending Connect on 1300 911 621 or click on “get started now” and we call you back to see if you qualify for unsecured business loans.
Our lenders usually require a combination of the below as a part of an application:
