Commercial Business Loans

Name: Commercial Business Loans
Creator: Savvy
Published: 2022-01-20T13:54:25+10:30

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Written by , updated on September 21st, 2023

The features and benefits of commercial business loans

Borrow up to $500,000

You can apply for a business loan for as much as $500,000 or as little as $5,000, so you can be safe in the knowledge you’ll be able to apply for the specific amount you want.

Repay over three months to five years

Businesses can dictate the cost of their monthly repayments by selecting a term to suit their needs, so you can choose either long or short-term commercial loans.

Lock in an unsecured loan deal

Any business can be approved for the loan they’re looking for without the need to put forward a valuable asset, such as property, as our lenders offer unsecured business loans.

Make additional repayments where possible

We also work with lenders who won’t penalise you if you’re in a position to submit additional repayments and pay off your debt before your term is up.

Flexible usage

Commercial loans can be used for whatever you like, from fitting out your current business premises to financing the purchase of an existing business and anything in between.

Diverse finance types

You’re not just limited to standard commercial financing, though, as you can also consider business lines of credit and overdraft facilities to give your business the help it’s looking for.

100% online application

You won’t need to leave the comfort of your home when applying for your loan, as all of our lenders offer online business loans to make things more convenient for you.

Minimum $5,000 monthly turnover

These loans aren’t limited to big businesses, either, as you’ll only need to be generating at least $5,000 per month and have been operating for six months or more to qualify.

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 compare commercial business loans

Available loan amounts

Available loan terms

Fees

Repayment flexibility

Interest rates

Available loan amounts

Available loan terms

Fees

Repayment flexibility

Interest rates

Frequently asked questions about commercial business loans

Do I need to get a commercial property loan if I’m buying property for my business?

Most likely, yes – commercial property finance usually requires greater borrowing amounts, which can be facilitated by securing the loan with the property itself. This can be done via a commercial property loan, which functions similarly to a regular home loan but can offer shorter potential payment terms (as few as five to ten years) as well as allowing you to claim for depreciation of property and assets.

Are there any secured finance options available for my business?

Yes – if you want to buy a specific piece of equipment or machinery, you could look to equipment financing. This is a loan specifically designed to pay for the purchase of an asset, with the loan amount tied to the cost of purchasing it. These come with lower interest rates and longer borrowing terms up to seven years. Additionally, you might simply want to attach an asset, such as property, as collateral to your business loan to increase your borrowing power above $500,000 and access a repayment term of up to ten years.

Which documents will I need for my loan application?

When it comes to applying for a business loan in Australia, the documents you’ll need to submit with your application form include:

ABN/ACN and GST registration
Personal photo ID
Business bank statements
Record of expenses such as rent
Financials for larger loans (usually $200,000 to $250,000+), including:
- Tax returns
- Accounts receivable and payable
- ATO Integrated Client Account (ICA) information
- Record of assets
- Profit and loss statements
- Detailed business plan

Are loans available to startup businesses?

Yes – there are some situations where a lender will be able to approve a loan for a startup business with less than six months of trading time. As an owner, you’ll likely need to have a record of running businesses in the past, as well as have transferrable skills for your new business. These loans will be more restrictive when it comes to loan amounts and are likely to come with higher interest rates.

What if my business has seasonal income?

You can still be approved for a business loan if your business operates on a seasonal basis. You’ll simply have to make sure your loan payments are manageable all year round or take on a finance deal which allows you to contribute significantly more during your operating period in the form of extra repayments. Some lenders can offer specialised repayment plans to businesses in this position, but this won’t always be the case.

What is invoice finance?

Invoice finance is a type of business finance whereby you sell your unpaid invoices to a third-party financier, who usually pays 70% to 90% of the total upfront and the remainder once your client pays them (subtracting their service fees). This type of finance is favoured by businesses who deal in invoices and want faster access to the funds they’re owed, which can add to their cashflow and help cover short-term debtor periods.

How is a line of credit different to a standard business loan?

Lines of credit are seen as a more flexible source of financing for businesses, as they involve being approved up to a pre-determined limit and enable you to draw up to that amount whenever you see fit. Businesses may prefer this method, as they’re not given a lump sum at the start of their loan and forced to repay it all with interest. Lines of credit only charge interest on the amount you’ve drawn (albeit sometimes at a higher rate than regular business loans) and can be revolving, meaning they’re able to stay open as long as they’re viable.

If my business is headquartered in Adelaide but trades in other states, will that affect my loan application?

Yes – you won’t have to look specifically for an Adelaide business loan regardless of whether all your trading is done locally or in other cities such as Perth. Business loans are 100% online and open to companies across the country, meaning there isn’t really such a thing as a Perth business loan anyway. The specific states in which you do business as an operator won’t have any meaningful bearing on your application; the most important thing is whether your business can reach the criteria required to get approved.