Instant Business Loans

Name: Instant Business Loans
Creator: Savvy
Published: 2022-01-27T12:37:08+10:30

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Written by , updated on July 26th, 2023

The features and benefits of instant approval business loans

Fast outcomes within an hour

Once you submit your application, some lenders are able to process it and approve your business for the funds it needs as soon as one hour after and advance them to you in just three.

Flexible repayment periods

Part of the beauty of business loans is that you can decide on a term which best fits your business’ ability to cover its loan repayments, which are offered for as few as three months up to five years.

Access up to $500,000 without security

Borrowing ranges also vary between lenders from $5,000 to $500,000 in some cases, but you can still achieve this without security by taking out an unsecured small business loan in Australia.

Fewer documentation requirements

For smaller business loans and those reaching up to around $200,000, you generally will only need to supply photo ID, ABN/ACN and GST registration, business bank details and a record of rent.

Able to be used for any business purpose

These loans are highly flexible in terms of what they can be used for, with no real restrictions placed on operators on how they distribute the funds across their business.

Available to six-month-old businesses

You can be approved for a fast business loan with as few as six months of trading under your belt, opening the door for newer businesses which are still finding their feet.

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.

Top tips for speeding up the business loan approval process

Only apply for what your business can manage

While there’s no straightforward calculation of how much your lender deems your business able to borrow, it’s important to take stock of your finances and only apply in the realm of reasonability. For instance, if your business generates $10,000 in monthly revenue, it likely wouldn’t be feasible to repay a loan which requires repayments of more than $8,000 each month. Consider what your business needs before you apply.

Ensure you have all the right documents

One of the most common reasons for business loan applications being delayed is that the owner-operator doesn’t have all the right documents for approval. It’s a highly avoidable delay, so you should always double-check what the requirements are with your lender. For larger loans which require business financials, you may need balance sheets, tax returns, profit and loss statements, a business plan and more.

Display a positive credit history

Showing your lender that you have the ability to repay debts in a timely and responsible manner will always boost your chances of receiving swift approval. This may be from previous unsecured business loans or through established relationships with suppliers where you’ve paid invoices on time and in full. With a strong credit score, your lender will be more comfortable greenlighting an application from your business sooner.

Apply earlier in the day and week

By submitting your application as early as possible in the day or week, you give yourself the best chance of having business loans funded on the same day. For example, a morning application will give your lender more time to assess your business’ profile that day compared to one sent through in the late afternoon. Similarly, a Friday afternoon application is more likely to remain outstanding over a weekend than a Monday morning one.

Frequently asked instant business loan questions

Can I actually receive instant approval on a business loan?

No – there aren’t any business lenders who can approve applications instantly for loans in Australia. This is because, unlike other loan types which can largely automate the process, there are more factors to consider when looking to approve a business. The scrutiny and assessment that’s required for these loans is greater, therefore the quickest time you’ll find your application can be processed in is an hour.

Are loans with instant approval available to startup business ventures?

Probably not – however, that doesn’t mean there aren’t startup business loans available in Australia. There are specialist lenders operating in the market who can help startup businesses out with their funding, allowing them to access the funds they need when they otherwise wouldn’t have been approved by other lenders. It’s important to note, though, that these loans are considerably smaller than the standard borrowing range and come with higher interest rates to compensate for the increased risk taken on by the lender.

Will providing a personal guarantee speed up my loan approval?

It can – a personal guarantee is when you, or another of your business’ directors or owners, agrees to take on the loan debt should the business become unable to support its repayments. There are a number of steps which can be taken before you’re required to pay off the debt yourself, as this is more of a last resort. However, because personal guarantees add a further layer of security to the loan, you may find that your lender is willing to approve you for more and signs off on the loan sooner.

What fees will I need to pay on my business loan?

Most business loans don’t come with a huge number of fees, with interest rates forming the main charge associated with the loan, but the primary charge you’re likely to encounter is an application fee. These are usually charged at up to 2% to 3% of the value of your business loan, potentially amounting to a considerable additional cost. However, it’s important to note that this fee can be built into your loan repayments, enabling you to manage it more comfortably rather than be forced to pay a substantial lump sum upfront. You can use Savvy's business loan repayment calculator to help give you a rough idea of what you may be required to pay overall.

Are there any other same-day loan types I can use for my business?

Yes – if your business is particularly small and looking for loans as a startup business, you may also be able to turn to personal loans. Unlike business loans, these are taken out in your name and offer amounts ranging from $2,000 to $50,000. Personal loans are able to be turned around within 24 hours, while small personal loans can be approved and funded within just an hour, albeit for much smaller amounts of $300 to $5,000. Ultimately, unsecured small business loans in Australia are likely to be the best option for your business.

Are secured business loans slower to process?

Yes – if you opt for a secured business loan, you’re affixing an asset to the loan as collateral for the loan. This may come in the form of equity in your home or commercial property or assets your business owns, such as equipment and machinery. Because of this, your lender will need to confirm that the asset you’re looking to utilise as collateral is worth enough to cover the cost of your loan should your business become unable to repay it. This additional assessment will lengthen the approval process but increase your borrowing power significantly and lower your interest rate.

Should my business look at bridging finance instead?

Bridging finance might be an option for your business if you find yourself in between approval for larger financing and still need a cash boost to help you keep up with expenses in the interim. If you have residential or commercial property to use as collateral, this will have to be put towards your bridging loan in most cases. With terms of two weeks to 12 months and amounts of $5,000 up to $1 million, they’re intended to be turned around quickly. However, you may find unsecured financing is the better and more achievable option for your business.