$30,000 Business Loans

Name: $30,000 Business Loans
Creator: Savvy
Published: 2022-01-05T09:02:33+10:30

Home > Business Loans > $30,000 Business Loans

It won't affect your credit score.

Written by , updated on July 26th, 2023

The features and benefits of $30,000 business loans

No asset security needed

The loans our lenders offer are unsecured, making them more open to smaller businesses who don’t have eligible assets or simply don’t want to attach any collateral.

Competitive rates and fees

With the wealth of options in the market, you’re bound to find offers starting from low interest rates and offering affordable fees to take advantage of and save.

Choose your repayment term

Another key part of the small business loan process is selecting the term over which you repay your finance agreement, with loan lengths available as short as three months up to several years.

100% online application process

Save on the hassle of producing a stack of paperwork at a bank branch by submitting digital copies of all of your documents via your lender’s secure online portal.

Receive your funds in 24 hours

Our lenders work tirelessly to help you gain access to the funds you need fast, with same-day approvals and 24-hour funding both possible to lend the helping hand you need.

No required money upfront

You won’t need to provide a lump-sum deposit at the beginning of your loan, or indeed pay any of your own money to cover your expenses, if you don’t wish to.

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.

How to maximise your business loan approval chances

Work on your business credit score

Another key aspect of the business loan application process is your business’ credit score. This indicates to your lender whether your business is considered a reliable borrower and servicer of debt, with a higher score leading to increased approval chances and a lower interest rate. If you have outstanding debts, such as loans or other bills needing to be paid, doing so before you apply will help increase your score, as will minimising limits on any credit cards.

Display stable revenue

As mentioned, your lender wants to see evidence that your business will be capable of supporting your repayments across your chosen term. As such, having a business which generates a consistent revenue stream will help increase their confidence in you as a borrower, enabling you to be approved more easily. Too much fluctuation between months indicates instability, casting doubt over whether you’ll be able to support your repayments comfortably and consistently, so lenders value this highly.

Select a shorter loan term

Business loan applications are assessed through the lens of risk. In general, the longer the loan term, the greater the chance of something changing with your business which affects your ability to repay it. For example, lenders will see a one-year term as less risky than a three-year term, as it’s more difficult to forecast the trajectory of your business in the long term. By opting for a shorter loan term, you’re often more likely to be approved (provided you can afford to repay it).

Have all of your documents ready to go

By gathering all of the correct documentation, you’ll give yourself the best shot at getting approved for your loan. The primary documents you’ll need are your ABN/ACN and GST registration, business bank statements and personal identification, as well as other business financials like tax returns and profit and loss statements. If you don’t have all of these (namely your business’ tax returns), you can still be approved, albeit for a loan with less favourable terms (lower amounts and higher interest rates).

$30,000 business loan questions answered

Who’s eligible to apply for a business loan?

The eligibility criteria for business loans can vary slightly between lenders, but you’re likely to need to meet each of the following points as a minimum:

You must have no record of prior bankruptcies
You must have been trading for at least six months
You must be generating a monthly turnover of at least $5,000
You must be able to supply all of the relevant documentation required

Am I able to borrow $30,000 for my startup business?

You may be – some lenders in the market can approve applications for small businesses which have been operating for fewer than six months, with typical maximums sitting at around $30,000 in this instance. However, whether you’re approved will depend on several factors, with lenders looking for experienced business owners with skills transferrable to their new business and those who can potentially provide a guarantee for the finance deal’s repayment. If you're able to wait for a few months until your business is established, you may be able to borrow more, such as a $50,000 business loan.

Can I pay out my loan early?

Yes – we’re partnered with lenders who make it possible for you to repay your micro business loan ahead of schedule without penalising you for doing so. This will help shorten your loan and considerably reduce your payable interest. Early repayment fees can sometimes partially negate the benefit of paying off your loan sooner, so you should always look for offers which give you the flexibility to pay it off sooner.

Will my loan have a fixed or variable interest rate?

Business loans usually come with fixed interest rate terms, which involve locking in your business loan’s rate from the beginning to enable more accurate budgeting around your repayments throughout your term. Variable rates may be sought, though, as they can enable you to take advantage of decreases in your lender’s interest rate.

Am I still able to take out a small business loan on Centrelink?

Yes – some lenders can approve business owners for financing even if part of their income comes through Centrelink payments. However, there are limitations on how much you can be approved for and business loan interest rates are likely to be higher given your lower income. You may find that you’re not approved for $30,000 even if that’s the amount you need, as lenders may deem it too great a risk to do so.

How can a guarantor help me get approved for a business loan?

A guarantor is a third-party individual who agrees to guarantee the repayment of your loan in the event your business becomes unable to do so. This is someone in a strong financial position who can also afford to take on the repayments on the off chance they’re required to. With a guarantor, lenders will be more willing to approve loans, as they’re seen as being more secure overall. Guarantors are particularly useful for startups or inexperienced business owners.