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$50,000 Business Loans
Compare a range of $50,000 business loan options right here with Savvy today.
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The features and benefits of $50,000 business loans
Flexible loan terms
Decide on a loan term which best suits your business’ ability to handle repayments, with varying lengths available as short as three months and as long as five years.
Competitive interest rates
With competitors vying to capture you as a customer, you can take advantage of lower starting business loan rates in Australia and reduce the amount you’ll need to pay overall towards your loan.
Look for repayment flexibility
Some lenders offer small business loans without imposing any charge for paying out your agreement early, offering you flexibility and the opportunity to save further.
24/7 online applications
If you’re working flat out during the day and only have spare time in the evenings, you’re able to submit your application at any time of night via a simple online process.
Unsecured business finance
You won’t need to worry about determining whether your business’ assets are suitable to secure your loan, or indeed put up personal assets, as you can take out an unsecured business loan.
Just six months of trading required
It doesn’t matter if your business is still in its relative infancy at six months old, as we work with lenders who can approve financing for businesses who’ve been trading beyond that period.
Types of business loan
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.
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.
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.
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.
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 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.
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.
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.
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.
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.
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.
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How to compare $50,000 business loans with Savvy
Interest rates
One of the key areas to assess when considering different unsecured business loan offers in Australia is their interest rates. It’s important to get this aspect of your business loan right because it stands to be the most significant cost factor in your agreement. Even small differences in interest rate can save you hundreds of dollars over your term, if not more.
Fees and comparison rates
On top of interest rates, fees can also factor into your business loan. This primarily comes in the form of your application fee (otherwise known as its establishment or origination fee), which can cost either a fixed sum or a percentage up to 3% of your total loan amount.
As such, you should compare offers based on comparison rates, which are percentage figures that incorporate both your loan’s interest and fees to give you a more accurate indication of its cost.
Early repayments
You should look to prioritise loans with free early repayments wherever possible, as it’s useful to leave the door open for yourself should your business’ revenue generation improve. In paying off your loan early, you can shorten its term and reduce its payable interest (which is calculated based on your outstanding principal).
Being able to do so will help increase your business’ credit score and potentially make it easier to access further financing in the future.
Available loan terms
Perhaps most important is finding a lender who offers the loan term you’re looking for. When assessing business loan applications, lenders always look to the proposed loan term and assess whether it’s affordable for your business. This forms the cornerstone of your approval chances, as your loan must be comfortably affordable across your term to be greenlit.
Don’t settle for a shorter term which you’re not wholly comfortable with, nor should you select a longer term than you need and pay more interest overall.
Types of business loan
Finally, you should also give some thought to the type of loan you’re after. While the most popular type of loan, the conventional unsecured business loan, dominates the market, you can also look to a business line of credit if you wish to. These are seen as a highly flexible source of financing, as you can withdraw funds up to a set limit whenever you need them and only pay interest on your outstanding balance.
However, lines of credit can come with higher interest rates.
Frequently asked questions about business loans
As part of your business loan application, you’ll need to supply the following documents:
- Your ABN/ACN and GST registration
- Your business bank account details (to obtain recent bank statements)
- Your regular expenses, such as rent
- Personal identification (driver’s licence and/or passport)
There are several factors which will impact the interest rate you’re offered. This is mainly dictated by the level of risk your lender feels they’re taking on in lending to you, so the length of your loan may affect your interest rate if your lender considers a long term a greater risk. Additionally, the state of your business’ finances, namely its monthly revenue, the stability of cashflow and its credit score, will all factor into your lender’s decision on the rate you’re offered.
The entire application and approval processes for business loans are quick. Your application form will only take five to ten minutes to fill out on your lender’s site, after which you can be pre-approved and approved as soon as the same day. Your lender can then advance the funds directly into your business’ account just 24 hours thereafter, completing an extremely quick process which delivers the funds you need before you know it.
Yes – you can claim the interest portion of your business loan repayments as tax deductions at the end of the financial year. If you’re able to do this, you can save a considerable amount across your loan. It’s important to note, though, that the principal portion of your repayment can’t be claimed on tax, so you’ll need to pay this yourself.
A business overdraft is a facility attached to your business bank account which enables you to withdraw beyond $0 up to an approved limit. It functions in a similar way to lines of credit in that you can withdraw funds whenever you need them and only pay interest on your outstanding balance, although they come without set repayments. However, like lines of credit, interest rates are higher and can cost you more in the long term, while also heightening your business’ available credit (which can negatively impact its credit score).
Probably not – while there are specialist lenders who can offer loans to startups fewer than six months old, it’s incredibly unlikely that you’ll be approved for an amount as high as $50,000 in this circumstance. This is because startups are seen as posing a significantly greater risk than established businesses, which leads to limitations on borrowing power and will incur higher interest rates. In this position, you're more likely to be approved for a maximum of $30,000 on a business loan.
Helpful business loan guides
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