Compare non-bank business loans
Business operators aren’t just limited to banks when seeking out additional finance to cover their expenses. With online finance now bigger than ever, it’s important to compare offers beyond the traditional picks. Consider a variety of offers right here with Savvy to help you make the right call and save.
|Lumi Unsecured Business Loan|
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.More details
|Lumi Lux Rate Reducing Business Loan|
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 monthsMore details
|Valiant Finance Business Loan Broker|
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.More details
|ebroker Unsecured & Secured Business Loans|
Compare, find and match fast to over 80 bank and non-bank lenders accessing much needed working capital from a unsecured business loan.More details
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.
Non-bank business loans
What options are there for a non-bank business loan?
In Australia today we now have a very wide variety of business lenders, and there are many options to choose from if you’re not keen on borrowing from a bank. Some of the more common non-bank business lender choices on the market are:
- Credit unions – Credit unions are a good choice if you don’t want to use a bank, but you’re looking for something relatively similar in the way it operates. Banks have a lot of the same facilities as a bank – including local branches and ATMs. But credit unions are member run not-for-profit organisations, meaning the profits tend to go to members rather than shareholders (this is often shown through cheaper rates and lower fees).
- Online lenders – Online lenders have particularly come to the fore in the last decade or two, and have now become very common and widely used. Online lenders operate through the world wide web, and use encrypted internet technology to conduct most of their business. The advantage of this model is that it’s very efficient – online lenders don’t need to set aside profits for running local branches, and those lower overheads can translate to very competitive loan rates.
- Fintechs – As technology has evolved, so has the lending industry, and Fintechs (short for “Financial Technology”) is the catch all phrase for some of the modern websites and internet services that deal with money, finance, credit and non-traditional business loans – PayPal being one of the oldest and best-known examples. These can be highly specialised and not all of them qualify as a “lender” as such, but there are Fintech which do have lending services.
Some of these options have been around many years, and are now quite well established. Others are enjoying almost explosive growth in recent years. Either way, it’s pretty clear that the big banks aren’t the only lenders on the block anymore, and there’s many loan choices for businesses who prefer not to deal with a bank.
How do I compare non-bank commercial loans to find the best for my business?
As varied as your choices might be for loans and lenders, the question of “what will this loan cost me overall” is always a good place to start.
Nowadays it’s easier than ever to compare different loans and the rates they offer. Comparison websites now allow you to get online and very quickly weigh up a range of loan options to find the best offers for your business, both with loans from private lenders and those from big banks. Savvy’s a good example of this: you can compare a variety of loan types from a range of Australia’s top lenders and quickly find a loan to suit your business.
When it comes to choosing what type of lender you might want to go with, there’s a few questions that are useful to ask.
- Do I prefer working online? – If you have a preference for doing things from your own office via the internet then an online lender or Fintech might be a great choice. If you prefer talking face to face with a customer service rep, then a Credit Union might be a better choice.
- Do I want something quick and simple, or clever with lots of options? – If you’re keen on the business loan process being super simple, then online lenders could be a fairly good choice. In addition to being easily accessible, online lenders tend to have quite simple application processes – they can use secure online services to access things like credit information and simplify the process. If you’re more interested in getting your head around clever uses of finance and using technical
innovation to your advantage, it might be worth investigating some of the modern Fintechs.
- Do I want to offer collateral to get better rates? – Secured loans are generally something that takes a bit of human brainpower – it’s hard to automate assessing security. As such, if you’re going with a secured business loan of some type, a Fintech might not be the place to start looking.
Pros and cons of non-bank lenders
Flexibility with rates
Non-bank lenders are generally privately owned, with allows them more flexibility with fees and rates than a bank.
Smaller organisations like Credit Unions and online lenders tend to be much better with their customer service – as anyone who’s ever delt with a large bank’s automated call centre could generally tell you.
Because smaller lenders are more centralised with less bureaucratic organisation, their decision making can be simpler. This can often mean simpler conditions on a loan.
Not needing to visit a branch can be a huge advantage for businesses in remote regions – making online lenders a very good option for them.
The flexibility of non-bank lenders with rates can cut both ways, and means they can vary a great deal. Meaning it’s always wise to jump online and compare your options.
No physical branches (or at least less)
Sometimes it can seem a lot easier to go into a branch and sort a problem out by speaking with someone directly. While credit unions do have some branches, they’re generally nowhere near as common as bank branches. And online lenders generally don’t have any branches whatsoever.
Some can be confusing
If your financial or technical knowledge is fairly basic, this can put many fintech option out of reach. Even online lenders can require a certain amount of technical and internet knowledge – although in that case the process is generally quite simple once you are on the net.