Business Loans Australia

Assess your options for business financing by comparing some of the top offers in Australia all in one place with Savvy.

Last updated on June 15th, 2022 at 03:20 pm by Thomas Perrotta

Compare business loans Australia

With a vast array of businesses trading across Australia, big and small, it’s important to have a range of suitable financing options available to owners and operators. At Savvy, you can consider a variety of business loans from around the country to ensure you walk away with the best deal for your company.

site-logos OnDeck Business Loan
  Min. Loan Amount Max. Loan Amount Loan Term Establishment Fee Annual Fee  
site-logos $10,000 $250,000 6 to 24
Months
3% $0
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Lightning business loans up to $150K can be funded in as fast as 2 hours - simply provide 6 months of recent bank statements.

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site-logos Lumi Unsecured Business Loan
  Min. Loan Amount Max. Loan Amount Loan Term Establishment Fee Annual Fee  
site-logos $5,000 $500,000 3 to 36
Months
2.5% $0
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Boost your business with fast hassle-free funding from Lumi. Apply online in five minutes without harming your credit score and get funds in as quickly as 24 hours. For a limited time: Business Loans with No Repayments for the first 6 weeks. T&C apply.

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site-logos Lumi Lux Rate Reducing Business Loan
  Min. Loan Amount Max. Loan Amount Loan Term Establishment Fee Annual Fee  
site-logos $200,000 $500,000 12 to 48
Months
3.50% $0
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Lumi Lux™ is an innovative rate-reducing business loan that rewards customers with good repayment histories and no contractual breaches throughout their loan term by dropping interest rates by 25 basis points (0.25%) every six months

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site-logos Valiant Finance Business Loan Broker
  Min. Loan Amount Max. Loan Amount Loan Term Establishment Fee Annual Fee  
site-logos $5,000 $1,000,000 3 to 60
Months
$0 $0
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Valiant is Australia’s leading business loan broker with a network of over 80+ lenders. Apply for a business loan between $5,000 and $1 million and get approved in as little as 24 hours.

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site-logos ebroker Unsecured & Secured Business Loans
  Min. Loan Amount Max. Loan Amount Loan Term Establishment Fee Annual Fee  
site-logos $5,000 $3,000,000 6 to 360
Months
$0 $0
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Compare, find and match fast to over 80 bank and non-bank lenders accessing much needed working capital from a unsecured business loan.

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Disclaimer: Savvy is not advising or recommending any particular product to you. We provide general information on products for the purposes of comparison, but your personal situation or goals are not considered here. Although we try to make our comparisons as thorough as possible, we do not have information on all products on the market on our site.

You should always consult a given offer's PDS or further documentation in the process of deciding on which loan to choose, as well as seeking independent, professional advice. If you decide to apply with one of the lenders listed above via our website, you will not be dealing with Savvy; any applications or enquiries will be conducted directly with the lender offering that product.

The features and benefits of business loans in Australia

Competitive interest rates

By comparing the top offers in the market, you can narrow down the lowest, most competitive business loan interest rates from Australian lenders and secure a cheaper deal for yourself.

Borrow what you need

Business loans can be used for large or small purposes, with loans available from just $5,000 up to $500,000 ensuring they’re versatile for just about any business need.

Repay over up to five years

You can also set the term over which you repay your loan to suit your and your business’ needs, with lengths as short as three months up to five years able to be chosen.

Unsecured financing

We work with lenders who offer unsecured small business loans in Australia, meaning you won’t have to put any form of valuable asset up as collateral for your loan.

Pay out your loan early

Our lending partners include those who won’t penalise you for paying out your loan ahead of schedule, allowing you to get your finance deal off the books more quickly and save.

Online process from start to finish

You don’t have to leave your home when applying for your loan, with a simple online application process enabling you to apply for and settle your loan from your smartphone.

Increase flexibility with a line of credit

If you want to access funds whenever you need them from a revolving credit account, you can instead opt for a business line of credit to add greater flexibility to your finance deal.

Tax-deductible

The interest you pay on your business loan is tax-deductible, potentially saving you thousands of dollars over the life of your loan to be spent elsewhere around your business.

Why businesses in Australia compare loans with Savvy

Top tips for increasing the speed of your business loan application

Have all your documents ready

Review your lender’s documentation requirements before applying so you can prepare all of the required pieces of information for submission. Some lenders will require more pieces than others, but you’ll always need to supply your ABN/ACN and GST registration, personal identification such as a driver’s licence or passport and your business bank account details. In some cases, you’ll be required to provide business financials like tax returns, accounts receivable and payable, profit and loss statements and a financial plan.

Apply earlier in the day and week

Although it may seem trivial, getting your application in as early in the week as possible can help you avoid the process dragging out over several days. If you apply on a Monday morning, for instance, you can have your funds available as early as Tuesday morning. In contrast, an application on Friday afternoon could feasibly take until late on Monday or early Tuesday to be fully processed and transferred.

Look after your credit score

Your business’ credit score is a key factor in the type of loan you’re approved for. If your score isn’t the highest, you can look to several strategies which may boost it, such as reducing the limits on your business credit cards, paying off outstanding debts or continuing to do so in a prompt and timely manner. The higher your credit score, the greater the chance of sailing through the application process and receiving immediate approval at the first attempt.

Only apply for what you need

The best way to approach your business loan application is with a firm idea of what you need as a business. It’s often useful to map out exactly which expenses you’re looking to have covered by your loan to ensure you’re not simply shooting in the dark with your application. Determine what you need: are you looking to add to your business’ cashflow, cover a tax debt, help pay for refurbishment or something else? Only applying for what you need will hold you in good stead throughout the process. You can use our repayment calculator to help estimate the cost of different loans.

Common questions about business loans in Australia

What can I use a business loan for?

Pretty much anything you need – provided it’s business-related. Businesses large and small can use loans for an array of purposes, from contributing to their cashflow to fitting out their premises to purchasing another business. Many business owners will use their funds to help cover staff wages, while others might wish to buy substantial equipment they can’t quite afford to pay for upfront. Alternatively, if your business has built up sizeable debts, you can consolidate them into one loan to manage them more easily and potentially save money over the course of your loan.

Do I have to make a personal guarantee?

Not always – we work with lenders who won’t require you to supply a personal guarantee or that of one of your company’s directors as part of your medium or small business loan application. Personal guarantees essentially act in the same way a guarantor would for a home loan: by doing so, you’re guaranteeing the repayment of the loan to your lender, even if your business becomes unable to manage its repayments.

Can I get a business loan in Australia if I’m a temporary resident?

Yes – some lenders in the market can approve temporary residents for small business loans in Australia. However, not all visas are eligible to receive loans or start a business, so you’ll need to cross-reference this with your lender. You’re likely to require a Business Innovation and Investment (Provisional) visa (subclass 188). Additionally, you’ll need to make sure your loan is completed several months prior to your visa’s end date.

How long do I have to work to qualify for a loan?

Most lenders will require you to have been running your business for at least six months before you apply, but some raise this to a minimum of 12 months. Alternatively, there are specialist lenders who can approve startup business loans in Australia, meaning there won’t be a minimum requirement. However, they come with significantly reduced borrowing power and higher business loan interest rates, as well as greater scrutiny on your personal credit file and whether you’ve run businesses in the past and/or have skills transferrable to the business you’re starting up.

What cashflow does my business need to be approved?

Lenders will always set a minimum monthly or annual turnover as part of their set of eligibility criteria. This minimum, in some cases, will sit at around $5,000, although others may require a more substantial annual turnover of greater than $100,000. Always check your lender’s criteria before applying to make sure that your business is generating enough money to qualify.

Can I be approved for a loan if my business has seasonal income?

Yes – seasonal businesses can access business loans, but they’re likely to look slightly different to the standard personal loan. These may be agricultural businesses or those who rely on warm weather. Because of a lack of business in their off-season, lenders consider these types of businesses a greater risk, which can attract higher rates and reduced borrowing power in some cases.

Am I able to supply security for my business loan?

Yes – providing an asset as security for your loan can help you substantially increase your borrowing power and reduce your interest rate. This is because they’re considered safer by lenders, as they have something to fall back on in the event you become unable to support your repayments. You can utilise either commercial or residential property as loan security, as well as vehicles, equipment and appliances (which is known as equipment finance). These loans often take longer to process, as they’re generally larger and require lenders to assess the suitability of your asset.

Should I just use a business credit card instead?

Not necessarily – if you’re looking to make smaller purchases that can easily be paid off quickly, a credit card might be a good option for your business, as they’re convenient and sidestep the need to apply for financing. However, if you want to make a more expensive purchase and aren’t likely to be able to pay it off within your card’s interest-free period, you might be better off with a loan. This is because any outstanding balance on a credit card will attract considerable interest and fees, which are usually much higher than those of unsecured business loans in Australia.