Business Loans Melbourne

Find the best loan for your Melbourne business by comparing a variety of offers right here with Savvy.

Last updated on June 9th, 2022 at 12:58 pm by Thomas Perrotta

Compare business loans Melbourne

Needing a loan to help ease the financial burden on your business is far from uncommon. Whether you’re in the heart of Melbourne’s CBD or further out in Geelong, Ballarat, Bendigo or anywhere else, it’s important to ensure you lock in the best possible deal by comparing offers with Savvy.

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 Melbourne

Borrow what you need

You can access as much as $500,000 with your finance deal, with small business loans of as little as $5,000 available to fill a wide variety of roles across your business.

Don’t worry about asset security

These finance deals are unsecured, meaning you won’t have to worry about putting up your house or any of your business’ assets as collateral for your loan.

Choose your preferred repayment term

You have the ability to take out a financing deal to suit your needs as a business and ensure your repayments are manageable, from three months to five years.

Pay your loan off ahead of schedule

We partner with lenders who won’t penalise you when it comes to repaying your loan early, enabling you to potentially save a significant amount for your business overall.

Competitive rates and fees

With lenders in the market jostling to help your business out, you can take advantage of competitive interest rates and fees to help you save throughout your loan term.

Apply from the comfort of your office

The application process is highly convenient and 100% online, so you can submit all your documents and application form directly to your lender 24 hours a day.

Why compare Melbourne unsecured small business loans with Savvy?

Top tips for saving on your business loan

Compare as many loans as you can

Perhaps the simplest way to net yourself a great unsecured small business loan deal in Melbourne is to compare your options as thoroughly as possible with Savvy before committing to one single offer. You’ll maximise your chances of saving by doing this one simple thing: taking a bit of time to analyse the market and make an informed choice on not only the most affordable loan but the one whose features best suit you.

Contribute some of your business’ revenue

If you’re in a position to do so, paying some of your business’ available funds towards whatever expenses need covering will help you reduce your loan amount and, in turn, the interest and fees you’ll need to pay. This essentially functions as an interest-free deposit, which could be very helpful in the long run (particularly if your interest rate is on the high side).

Pay out your loan earlier

By shortening your business loan term, you’ll reduce the interest charged on your loan. This is because it’s calculated based on your outstanding loan principal on a daily basis, so if your loan debt reduces more quickly, so too will the interest charged. Opting for a shorter loan term to begin with will help accomplish this, although you shouldn’t take on a greater monthly commitment than you can afford, while making extra repayments will have the same effect.

Take advantage of tax benefits

Finally, you should also be aware of the potential tax benefits which come with a business loan in Australia, namely the fact that interest on your payments can be tax-deductible. This is important to know, as this can save your business hundreds, if not thousands, of dollars over the life of your loan. Your full repayment isn’t claimable, though, as the principal portion will be covered by you.

The business loan application process explained

Our Process

Compare loans and lenders

You can do this here with Savvy. Make sure you choose a lender who offers a product which suits your needs, with affordable repayments and flexible features.

Collect all the required documents

You’ll need to gather all the documents you need for your application, which in most cases will only be personal ID, business bank statements, your ABN/ACN and GST registration and a record of your rent.

Submit your application

The application form offered by your lender will only take a matter of minutes to fill out, which you can then submit with your documents directly to your lender.

Sign off and receive your funds

After receiving an outcome in as little as an hour after submission, you can sign off on your loan contract and receive your funds directly in your account not long after.

Frequently asked business loan questions

What can I use my business loan funds for?

Just about anything you like – business loans are designed to be utilised across any facet of your business. Whether you’re seeking to purchase new equipment (which can also be done via equipment finance), finance the fitting out of your business’ interior or even to purchase an existing business franchise, your loan can help you achieve your goals.

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

A line of credit is seen as a more flexible type of business loan, whereby you’re approved for a certain limit (such as $150,000) and are able to withdraw funds from an account up to that limit at any time you like. You’ll only have to pay interest on the funds withdrawn, meaning if $50,000 ended up being unused, you wouldn’t be charged for it. Businesses prefer this as it presents an option beyond simply advancing a lump sum and starting repayments immediately. However, interest rates can be higher with these loans.

Should I just use my business credit card instead?

Probably not – if you’re only making small purchases which can be paid off within your card’s interest-free period, it may be the better option for you in that instance. However, if that isn’t the case, a loan is likely to be better, as cards come with significant interest rates which can mount up if you leave debt rolling over into the next month.

Can I get a commercial loan in Melbourne if I’m running a startup?

Yes – however, it’s more difficult to do so. Business lenders will scrutinise applications for startup business loans more closely, as they’re considered a greater risk of default than an established, successful operation. You’ll typically need to have run a business before or hold skills transferrable to your new business, but even then, you’ll receive a higher interest rate and significantly lesser borrowing range.

How do lenders work out how much my business can borrow?

There are several factors which weigh on the minds of lenders when assessing how much different businesses are eligible to borrow. Some of these include:

  • Monthly and annual turnover
  • Expenses
  • Time trading
  • Business credit score and that of the owner
  • Assets and liabilities
  • Revenue forecasts (via a business plan)

 

If you wish to crunch the numbers on what different loans might cost you, though, you can make use of Savvy’s business loan repayment calculator to help you compare your options.

What if I don’t have all the documents needed for my application?

Some lenders will offer low doc business loans to borrowers who don’t have the required financials to otherwise complete their application. This is often the case for new businesses, so these present themselves as an option for those in this position. However, these will generally also come with lower borrowing ranges and higher interest rates. It’s important to note that many online financiers have made it far simpler for businesses to get approved without financials, as business bank statements are considered full financials by many operating in the market today.