The features and benefits of Perth business loans
Don’t worry about putting up your home or a valuable business asset as collateral for your deal, as our lenders offer unsecured small business loans in Perth to help you cover your business.
You can apply for loans large or small, with maximum borrowing ranges reaching as high as $500,000 or as low as $5,000 enabling you to custom-fit your loan to your needs.
Part of the custom-fitting process is deciding how long you should take to repay your loan, with a wide range of term lengths available from different lenders allowing you to find the best one for your business.
Whether you’re looking to finance equipment or machinery purchases, fitting out your shop’s interior or any other potential expense, a business loan can help you cover it.
You don’t need to have been operating for years on end to access the funding your business needs, as most lenders will accept applications from businesses trading for at least six months.
Types of business loan
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.
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.
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.
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.
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 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.
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.
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.
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.
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.
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?
The documents you’ll need for your business loan application
When applying for a small business loan, your lender needs to confirm that you’re who you say you are and will request personal photo identification as a result. In most cases, you’ll be asked for your driver’s licence, which must be valid at the time of your application, but a passport can also be used.
How to apply for your unsecured Perth business loan
It’s all well and good deciding to apply for an unsecured commercial loan in Perth, but it’s just as important to understand the process as it is to put together your application.
There are several key steps to follow on the way and knowing these will put you in the best position to prepare thoroughly for your application.
Familiarise yourself with these points to help you increase your approval chances in good time and receive the funds you need fast.
Common loan queries from Perth business owners
Helpful business loan guides
Still looking for the right finance for your business?
Explore a range of business loan options suitable to your financing needs and apply online through Savvy today.