$10,000 Business Loans

Name: $10,000 Business Loans
Creator: Savvy
Published: 2022-01-04T16:07:00+10:30

Home > Business Loans > $10,000 Business Loans

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Written by , updated on September 8th, 2023

The features and benefits of $10,000 business loans

Competitive interest rates

With competition in the market growing constantly, you’ll be able to find options starting from the lowest rates available to help you save throughout your loan.

Borrow over as little as three months

Business loan terms are flexible to suit your needs, so you’ll be able to repay your finance deal over as little as three months or as long as several years depending on which is better for you.

Unsecured finance deals

We work with lenders who offer business loans without any collateral requirements, meaning you won’t need to put a valuable asset against your loan to secure it.

No usage restrictions

As long as it’s for business purposes, you can make use of your loan for just about any purpose you may need, making them highly flexible to any business.

Fast online process

Because your application process takes place 100% online, the process can run more efficiently, with fast approvals and funding possible within just 24 hours.

Tax benefits available

The interest on your business loan repayments can be claimed as a tax deduction, potentially slashing the cost of your overall financing significantly.

Types of business loan

Unsecured business loans

The most common type of business finance, unsecured loans enable businesses to access the funds they need without attaching an asset to the loan as security. Some lenders may allow you to borrow up to $500,000 and, because there's no collateral, offer same-day approval.

Secured business loans

If your business already owns valuable assets, such as property or expensive equipment, you may choose a secured business loan instead. These loans may increase your borrowing power beyond what an unsecured loan can offer and, crucially, typically come with lower interest rates.

Small business loans

Business loans don't always have to be worth hundreds of thousands. If you're operating a small business and need a boost to help you keep on top of your expenses or expand your company, you may be able to take out a loan starting from as little as $5,000 and unlock further capital.

Low doc business loans

Just because you don't have all the required documents for a standard business loan doesn't mean you're out of options. Low doc finance enables you to use alternative documentation, such as other business financials, in the application process to access the funds you need.

Lines of credit

A commercial line of credit allows you to draw from your loan account whenever your business needs access to their funds, instead of managing a lump sum and repaying it like a regular loan. This can add flexibility to your finance arrangement, providing money when you need it.

Invoice finance

Invoice finance presents another option to business operators looking to free up cash through outstanding invoices yet to be paid by their customers. Your invoice finance can either be invoice discounting or factoring, which present different options when it comes to your invoices.

Equipment loans

A common reason for seeking out a loan is to purchase commercial equipment. You can do this either with an unsecured arrangement or one with the equipment itself as collateral, with the latter potentially increasing your borrowing power and lowering your interest rate.

Supply chain finance

With this finance, when your business purchases product, your supplier provides an invoice which you send to your financier and pledge to repay by a set date. From there, your supplier sells the invoice to your financier at a discounted rate, while you repay the full amount to your financier.

Inventory finance

Under an inventory finance agreement, your lender pays your supplier directly for inventory, which allows it to be signed off and sent to you. From there, you can pay off your debt within a pre-determined period to your lender, which may be longer than the regular debtor period.

Overdraft facility

An overdraft facility is attached to an existing financial account belonging to your business, such as a transaction or savings account, and enables you to borrow up to a set limit after the account’s balance reaches zero. These overdrafts are repaid with interest, but only on what you use.

Cash flow loans

You may simply be in a position where your business needs a boost to its cash flow. If this is the case, there’s a range of stop-gap solutions which may be suitable for your situation, from standard unsecured loans to specialist cash flow loans, invoice finance or even an overdraft.

Why compare business loans through Savvy?

100% free service

It won't cost you a cent to compare a range of business loans through Savvy, enabling you to come back at any time.

Reputable lending partners

You can compare business loan offers through a range of trusted Australian lenders, giving you more confidence in the process.

Online comparison process

You can fill out our simple online form to generate business finance quotes tailored to your business' needs in minutes.

Top tips for saving money on your $10,000 small business loan

Compare as many options as you can

When you compare different business loans, you can give yourself a better understanding of the costs of different loans when it comes to interest rates and fees in particular. These are two key aspects of your business loan which will form the foundation for its overall cost, so it’s important to consider as many options as possible before selecting your deal. You can save before you even sign your agreement.

Contribute savings where possible

If your business has leftover funds that can be dedicated to your desired purchase or covering of expenses, it might be worth your while doing so. This decreases your loan amount, essentially serving as an interest-free contribution to your finance deal. For example, a $10,000 loan repaid over 12 months at 10% p.a. would cost around $550 in interest overall. Paying $2,000 of your money and reducing this amount to $8,000 would save over $100, which can be a meaningful amount for many small businesses.

Choose a shorter loan term

Interest is calculated daily based on your outstanding loan principal. This means that the faster your loan principal drops, the faster the cost of interest will also. As such, selecting a shorter term over which to repay your loan will cut down on the overall interest paid. For instance, a $10,000 business loan at 10% p.a. paid over six months would cost over $250 less in interest alone than the same loan over 12 months.

Make additional repayments

Following the same principle as a shorter loan term, making additional repayments across your loan will also cut down the interest you’ll be required to pay overall. This is because your loan principal will fall at a steeper rate, producing a similar result to a shorter term. Having this loan off your books sooner will help you increase your business credit rating and potentially secure better financing deals in the future.

Frequently asked business loan questions

How long does my business need to be trading before I can get a loan?

Most lenders will require you to be trading for at least six months before you’re eligible to take out a business loan. This is part of the risk mitigation process taken on by your lender, as they don’t want to approve an application which poses any great risk of not returning their money. There are, however, specialist lenders operating in the market who can approve unsecured small business loans for startups less than six months old.

Which documents will be required as part of my application?

The documents you’ll need to supply alongside your lender’s application form will vary between lenders, but will always contain:

Identification such as your driver’s licence or passport
Active registration for ABN/ACN and GST
Business bank statements (accessed by supplying your account details)
Record of the cost regular expenses, such as rent

Are there any small business loans or grants from the Australian Government?

Yes – the Australian Government offers a range of grants to small businesses, with funding and other benefits available from state governments. Indigenous businesses can look to take out a loan with Indigenous Business Australia, while more rural businesses can receive funding from Regional Development Australia. If you’re just starting your business, you can apply for the New Business Assistance Scheme with NEIS. Check the federal and applicable state government websites to find out if you’re eligible.

Will I be required to provide a personal guarantee?

No – a personal guarantee is usually only required for larger loan sums. We work with lenders who won’t ask you or your business’ directors to provide a personal guarantee as part of the loan process, particularly for micro loans of just $10,000.

Do I need to pay a deposit?

No – deposits aren’t a mandatory part of the business loan process. As mentioned above, businesses are welcome to contribute some of their existing funds as part of the loan deal as a way of reducing the cost of their loan, but this isn’t mandatory. Our lending partners can approve your loan application for 100% or more of the cost of your expense.

Can I receive my loan funds on a weekend?

Probably not – because most lenders aren’t open on weekends, they won’t have the means to process your application before Monday if you send it through on a Saturday or Sunday. Some lenders will automate part of the application process, so you could be pre-approved for financing on the same day you apply, but this won’t always be the case.

Am I still able to take out a secured business loan?

Yes – adding security to your business loan comes with several key advantages. You’ll be able to access lower interest rates on your loan deal and potentially expand your borrowing range beyond the $500,000 cap that usually applies to unsecured small business loans. However, you may find these loans aren’t as common and accessible and that they take longer to process due to your lender’s need to consider your collateral, which will need to pass suitability checks itself. If you decided you wanted to borrow more than $10,000, such as take out a $20,000 business loan, attaching security may help you do that as a small business.