Large Business Loans

Compare large loans for your business with Savvy and access the funding you need to cover more significant expenses.

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, updated on July 26th, 2023       

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How can I get a large unsecured business loan?

In Australia, unsecured business loans are among the most accessible business loans on the market, and they’re available from most business lenders – everything from big banks to modern online-only lenders. The maximum amount your business be able to borrow from a lender will depend on a number of factors.

  • How established your business is – This encompasses both how long you’ve been in business, and also how firmly established your business is – do you have a steady client base and a recognised brand?
  • Your business' current cash flow – How well is your business doing financially? Is your cash flow steady, growing, or in decline? Are you making a solid profit, or just breaking even?
  • Your credit rating – Your business’s credit rating will have an impact on your borrowing power, with good credit scores opening the door to much larger amounts.
  • The lender – Different lenders will offer different amounts. Some are very conservative and only offer large amounts to big business clients (banks are well known for this), whereas other lenders are more open to smaller businesses with a good track record. It pays to shop around, and not just consider the big banks.

When you’re setting out on the hunt for an unsecured loan to invest in your business, one of the best ways to start is by using a comparison website – like Savvy – to easily compare a range of loans side by side and find the best. Savvy allows you to compare interest rates on unsecured business loans – large or small – from some of Australia’s top lenders, and quickly find the best loan for your business. You can also compare term lengths so you can maximise your chances of locking in the short or longer loan term you need.

How do I maximise my chances of approval for a large unsecured business loan?

If you’re looking to do everything you can to maximise your borrowing power for an unsecured loan, there’s a number of things that might help strengthen your loan application.

  • Offer a deposit – Although they’re not normally required for an unsecured loan, offering a deposit can increase lender confidence by showing you now have something invested in the loan. This can potentially mean more borrowing power.
  • Have someone act as guarantor – Having someone in a strong financial position act as guarantor (offering to pick up the bill in the worst-case scenario that you can’t pay) can often translate into a higher maximum amount on the loan, as there’s less risk to the lender.
  • Maintain excellent credit – You can’t necessarily control how successful your business is financially, but your business’ credit rating is one thing you can control. Make sure your bills and loan repayments are paid on time, and don’t be too reckless with any business credit you have available – try not to use more than 30% of your available credit.
  • Keep good business records – Generally lenders want evidence of how well your business is doing, so maintaining good records to show this will help.
 

Any of these factors could have a positive effect on the total amount a lender might offer your business for an unsecured loan. All of them together can make a big difference!

Types of business loan

Why compare business loans through Savvy?

Pros and cons of a large unsecured loan

PROS

Doesn't require a large asset

Most larger loans are normally based on having an asset offered as collateral. If your business is relatively new or doesn’t have a lot on physical assets, that can limit your options a lot. But a large unsecured loan avoids that requirement.

Approval is easier and quicker

Unsecured loans are generally a lot quicker and simpler to apply for an get approved – normally being turned around within a few days. While a lender might take a little more care assessing an unsecured loan application for $100,000 to $300,000, it should still be a lot quicker than the weeks (or even months) sometimes required for getting a secured loan approved.

Maintain control of your assets

An asset offered as security isn’t totally under your control. If you’re using your business property for collateral, you can’t then sell it and move to a cheaper premises to free up capital. An unsecured loan allows you to maintain that control.

CONS

Interest Rates are higher

Unsecured loans come with higher interest than secured ones (which are generally the lowest on the Australian market). That means you’re generally paying a more for the loan overall.

Loan term is shorter

Because unsecured loans typically have shorter loan terms than secured ones (unsecured loans are generally up to about 5 years or so, while secured loans tend to start around there), you have less time to be paying off the money. That also means monthly repayments will be a lot more expensive.

Total amount is less

Unsecured loans can offer substantial amounts of money, but never as much as you can get with security on the loan.

Frequently asked questions about large business loans

How do I compare different unsecured business loans?

The best way to start off is always by jumping online and using a comparison website – like Savvy – to compare your options. Rates change quite regularly, and lenders will offer different rates at different times, so it’s always worth having the most up-to-date information on what lenders are offering.

Can I check my business' credit rating before I apply for a large loan?

Yes. You can apply for a copy of your business’s credit report from one of Australia’s major credit agencies – most notably Equifax, Experian and illion. Unlike personal credit reports, there might be a small cost involved.

Could I get a large unsecured business loan in the short term, and then change loans later?

Yes, refinancing a loan – getting a new loan to pay off the previous one – is quite a common thing nowadays. But before you do so, you should check if your current lender charges fees for paying off a loan early. If the fees are particularly high, it could negate much of the benefit of switching.

Could I use an unsecured loan taken out by another business as a guideline for how much money I could borrow?

No. Loan applications are on a case-by-case basis, and the terms that another business gets offered on a loan won’t tell you much about what terms your business will get.

In Australia, will having a very large unsecured loan impact my business' credit score?

Applying for a loan has a slight impact on your credit, but having the loan will normally only affect your credit rating if you’re missing repayments. The loan will show on your credit report, so lenders might be wary of offering you an additional loan if you already have a substantial one. But this should only be the case while the loan is still outstanding – your credit rating shouldn’t be affected.

Is there anything I can do to get a better interest rate on a large unsecured business loan?

In Australia, the things that increase your borrowing power will generally also improve the interest rates you’re offered on a business loan – be it large or small. So if you’re following the steps to maximise the amount you can borrow, you’ll most likely be getting yourself a better interest rate as well.

Can I purchase a business with a large unsecured loan?

Yes – however, you'll be better off opting for a secured finance deal if there are any assets you can use as collateral, as these will boost your chances of approval and potentially save you money overall. For instance, if you're taking out a loan for a caravan park purchase, you may be able to use an existing building on the property as security for your loan.

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