Micro Business Loans

Compare loans with Savvy today to help you ensure you find the best one for your small business today.

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, updated on July 26th, 2023       

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The features and benefits of micro business loans

Flexible repayment terms

You can take the time you need to repay your business loan, with terms available as short as three months and as long as several years to fit your repayment capabilities.

Choose to borrow what you need

Business loans enable you to take out a small amount to cover your lesser (but important) expenses, with loan sums available for as little as $5,000 up to $50,000 or more on the higher end.

Make additional contributions

Of course, you don’t have to stick to your loan’s minimum repayments if you don’t wish to, as many of our micro finance lenders enable businesses to contribute extra payments across your term.

No asset security

Micro businesses who don’t have the asset security, such as property or equipment, to back up their loan, it won’t get in the way of them getting approved for an unsecured small business loan.

Unrestricted business usage

As long as your loan is being used for business purposes, you can distribute the funds however you like, from adding to your cashflow to renovating the premises and everything in between.

Claimable interest

The interest portion of your loan repayment is able to be claimed as a tax deduction, so you can trim hundreds of dollars off the cost of your loan overall.

Types of business loan

Why compare business loans through Savvy?

Top tips for increasing your approval chances

Have all the right documents ready

Part of increasing your approval chances is ensuring you have all the right documents to go with your application. If you don’t have these, your lender simply won’t consider it in almost all cases. Fortunately, with microloans, you’re unlikely to need to supply business financials and instead rely on your personal ID, ABN/ACN and GST registration and business bank statements. Not having these on hand when applying can hold up the process.

Show a positive, consistent trading history

The safer your lender considers you to be, the more likely you are to be approved for the loan you’re looking for. Part of this is displaying a consistent, comfortable trading history to your lender, with longer operating periods always preferred. Additionally, having ample cashflow to comfortably service your loan’s repayments will also boost your approval chances, as micro finance lenders want to leave as much room for revenue fluctuation as possible.

Maintain or improve your credit score

Another part of the ‘safety’ element of your application which your lender will closely assess is your business’ credit score. This is a number which serves as a reflection of your past record paying off debts, such as other finance deals or simply rent or utility bills. The higher your score, the better your record when it comes to paying these on time and in full. You can improve your score by continuing to pay on time or lowering business credit card limits.

Work out exactly what you need

Finally, it’s often useful to map out the expenses which need covering before applying for your loan. This will help you gain a grasp of exactly what you need to borrow, rather than applying blindly for potentially far more or less than you need. If you’re applying for a small startup business loan, your lender may want to see where the money is going, so having this plan can help you increase your chances of approval.

Applying for your micro business loan, from start to finish

It’s useful to enter the online business loan application process with a sense of how everything works and what the steps to expect will be.

While all lenders have their own individual way of assessing applications, they mostly follow the same broad strokes, so these steps are likely to apply across the board.

Read through them before you apply to give yourself the best possible preparation for your application and help ensure it smoothly sails through for approval.

Compare your options with Savvy

Once you have a feel for the sorts of loans available in the market, you can compare from our panel of lenders and proceed with your application on their site.

Gather your documents and apply

Scan all of your documents (or provide access if they’re online) and send them alongside your application form directly to your lender via their online portal.

Receive a fast outcome

Once they’ve had the chance to assess this, you’ll likely receive an outcome on the same day you apply and as soon as an hour afterwards.

See the funds hit your account

After you’ve signed your loan contract, your lender will advance the funds directly into your business bank account, all of which can take place within the same 24 hours.

Common micro business loan queries

Are there any micro business loans available from the government?

There’s always a range of grants available to small businesses offered by both federal and state governments. However, the number of loans offered in general is limited. There are Indigenous business loans offered by Indigenous Business Australia, which can help start new businesses and support or purchase existing ones. Make sure you keep an eye on government sites to ensure you’re able to take advantage of grants wherever possible.

Can I access micro loans if my business has bad credit?

Yes – there are specialist lenders who can work with businesses who struggle with their credit score (as well as business owners in the same boat). You’ll find that a low credit score will inhibit your ability to borrow more than $30,000 over longer terms. Additionally, interest rates and fees are often higher on these loans compared to standard business finance.

What criteria will I need to meet for business microloans?

The main criteria your business will need to meet are related to minimum monthly turnover and minimum trading time. Businesses are required to generate at least $5,000 in revenue each month, while they’ll typically also need to have been in business for at least six months (although some lenders can work with startups with less trading time in certain circumstances).

Will my interest rate remain fixed across my term?

In most cases, yes – business loans generally come with fixed rate terms, which enable more accurate budgeting and a degree of certainty to be maintained throughout the repayment cycle. You’re protected against interest rate rises in this period, so you won’t have to worry about price hikes during your repayments.

Can I still apply if my business isn’t GST-registered?

Yes – many small businesses aren’t registered for GST due to their relative lack of turnover. If you’re generating less than $75,000 annually and you don’t have to register for GST, you can still apply for your business loan.

Am I better off looking at personal microloans instead?

If you have a strong personal record, you may benefit from a small personal loan instead of a business loan. This may also be necessary in some cases if your business doesn’t meet your lender’s requirements, so you’re required to take out the loan yourself. These loans are offered for a similar amount of up to $50,000, although they may come at a higher rate depending on your profile as a borrower.

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