Find and compare the best business loans for your needs
Comparing business loans is a crucial part of the process of finding the right loan for your company. With lenders from around the country willing and able to help your business reach its financial goals, you can lock in the best deal by considering your options with Savvy. Start the process today.
|Lumi Unsecured Business Loan|
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.More details
|Lumi Lux Rate Reducing Business Loan|
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 monthsMore details
|Valiant Finance Business Loan Broker|
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.More details
|ebroker Unsecured & Secured Business Loans|
Compare, find and match fast to over 80 bank and non-bank lenders accessing much needed working capital from a unsecured business loan.More details
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.
Best Business Loans
How do I get the best business loans?
There’s a number of factors that can affect the terms you’ll get on a business loan in Australia. Understanding some of those factors – and how you can influence them – can have a massive impact on the terms you’ll be able to get on a loan for your small business. Consider the following aspects of your business loan when applying:
A high or low credit rating can make a huge difference to not just getting approval for a business loan, but also getting the best rates. Look after your credit rating by making sure you pay your debts on time, not letting bills go overdue and keeping credit card limits low.
Your business track record
Most lenders will examine your business and how it’s doing to assess your suitability for a loan. Keep good records for your business to show them how established you are and how your finances are going and be realistic about what sized loan your business could comfortably pay off.
Type of loan
Select a type of loan that’s best suited to your situation. If you need sporadic funds rather than a lump sum, perhaps a business line of credit would be the best financing option for your business rather than an unsecured loan – the interest might be higher, but you’re only paying interest on the money you’re using. Alternatively, if you need a greater sum of closer to $1 million or more, a secured business loan can help you reach that.
The security or collateral almost always sweetens the deal for a lender, lowering the risk and enabling them to offer some of the cheapest loans in Australia. However, you need to weigh this against the risk of losing your asset and the fact that you need an asset to offer.
When it comes to loans, not all lenders are the same. One of the most helpful things you can do to get the best business loan is to shop around and compare your options. Don’t just consider the big banks either – smaller lenders can have some of the best loan options on the market to suit your personal needs.
What is the best type of business loan for my situation?
Probably the most common options of business loan are secured and unsecured loans. Both of these are fairly traditional loans where your business borrows a lump sum of money from a financial institution and then pays it back in regular instalments.
The main difference is that with a secured loan, the business offers an asset of some kind (like a property) as security or collateral, while an unsecured loan doesn’t. As a result, a secured business loan generally offers lower rates and higher amounts, making it the best “cheap” option (with the lowest interest rates).
An unsecured loan doesn’t require collateral, making it one of the best small business loans for start-ups which don’t have many assets to offer. The trade-off is that the interest rates offered are higher compared to a secured loan, they generally need to be paid off sooner and they normally offer less money. However, they offer peace of mind that no collateral is securing the loan and provide a foot in the door for businesses that can’t otherwise meet asset requirements.
Another common financing option is a business line of credit. This is like a credit card on a whole business scale – it’s an amount of money that a lender sets aside for your business to use whenever it’s needed – but you only pay interest on the money you’ve currently borrowed and repay the entirety of the amount by a set date. If your business tends to need access to a pool of funds to be used at need rather than a large lump sum, a line of credit could be the best for your situation.
There are also a number of other finance options on offer, including:
- Business credit card – A business credit card is similar to a personal credit card, and offers similar flexibility to a business line of credit, but is a little more permanent – and with higher fees.
- Invoice financing – A good option for a business which is currently owed a lot of money by customers. This involves selling those invoices to a third party at a reduced rate, and letting them sort out the debt.
- Merchant cash advance – A type of loan where the lender takes a percentage of your day-to-day profits rather than a set repayment amount.
- Bad credit business loan – This is a special type of small loan for a business with a poor credit rating. For some small businesses, this is the best and only finance option available to them.