Private Business Loans

Find and compare a range of private business loans with Savvy to help secure the best deal for your business.

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, updated on September 21st, 2023       

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The features and benefits of private business loans

Competitive interest rates

With fewer overheads and increasing competition in the market, business operators can expect to find and compare some of the lowest interest rates available in the market.

No asset security required

Unlike some lenders, many private lenders for business loans can offer financing without the need for collateral, giving you a wide range of unsecured business loans to compare.

Flexible borrowing ranges

Business loans can be taken out for a variety of purposes and are designed to cover expenses big and small, with loans available for as little as $5,000 up to $500,000.

Customisable term lengths

You can also tailor your loan’s repayments to fit your business’ revenue limitations, with loans as short as three months and as long as five years on offer to businesses.

Early repayments without penalty

Many of our private money lending partners for business loans will allow you to contribute above the minimum required amount, enabling your business to pay off its debt sooner.

As few as six months of trading

It’s usually much simpler for small businesses to get approved for financing with a private lender, with fewer documents required and as few as six months of trading under their belts.

Types of business loan

Why compare business loans through Savvy?

Top tips for reducing the cost of your business loan

Plan out exactly what you need

It’s useful to enter the application process with a clear idea of the exact costs your business needs to cover. You should plan this out in advance, mapping out each of the costs and working out how much each of them are likely to cost. Doing this reduces the likelihood of over-borrowing, which can saddle your business with a larger debt than necessary and impact its long-term finances.

Claim your interest payments as tax deductions

Failing all of this, though, you can simply claim the interest portion of each business loan repayment as a tax deduction. This entirely negates the need to worry about the interest charge overall, although this can only generally be done at the end of the financial year, meaning it won’t affect available cashflow as soon as you might need. It’s useful to combine the deductions with the other steps to help reduce the strain on your business.

Offer loan security

While many private lenders deal almost exclusively in unsecured business loans, there are options on the market which can allow you to utilise asset collateral to secure a larger loan with lower rates and fees. The reason for this is that lenders consider secured loans to be safer. This can be anything from equipment owned by the business or equity in a residential or commercial property.

Make additional repayments

Paying more than you’re required to is a simple and effective way to reduce the potential cost of your business’ loan and free up more revenue in the long run. By more steeply reducing the principal your business owes your lender, the interest charged on the loan will also go down with each repayment at a faster rate than it otherwise would. If the loan comes with monthly fees, you can save on these too.

The private business loan application process explained

Our Process

Compare loans with Savvy

Take the time to compare different finance offers with Savvy, considering all the most important factors, before choosing your lender.

Gather your documents and apply

Ensure you have all the right documentation to submit first time around along with your application form to help save on time.

Receive an outcome and sign your contract

Once this has been submitted, your lender will assess your business’ case and, if approved, they’ll send through a loan contract to sign.

Have the funds available for business use

After you return the contract, the approved funds will be transferred directly into your business’ account for your use.

More common questions about private unsecured business loans

How quickly can my business loan application be approved?

In some cases, business loans can be approved within just one hour of submitting your application. In terms of the funds being sent through, in some cases, this can be achieved in as few as three hours. However, this isn’t the case for all lenders, as some will naturally take more time than others. On top of that, there are various individual factors which will have an impact on the time it takes, such as the complexity of your business’ financial situation and whether you have all the right documents.

Can private lenders approve startup business loans?

Yes – non-private lenders such as banks will rarely be able to approve an application from a startup business which doesn’t meet their eligibility criteria, as they’re generally much stricter in this respect. However, there are specialist private lenders who offer startup business loans to those who fall in this camp. Because they’re perceived to be a higher-risk proposition, though, they generally come with lower borrowing ranges and higher interest rates. You might also stand a better chance of approval with a peer-to-peer business loan, whereby your application is assessed and funded online by anonymous investors.

Which documents will I need to apply?

If you’re looking at applying for a smaller loan amount, you’re likely to only need your business’ ABN/CAN and GST registration, bank details, record of rent and your photo ID. For larger loans (typically upwards of $200,000), though, you’ll also need to supply detailed business financials, which can include the following:

  • Balance sheets
  • Tax returns
  • Profit and loss statements
  • ATO Integrated Client Account information
  • Revenue projections in a business plan
Which factors can affect my business’ borrowing power?

There are a variety of factors which may come into play when your lender assesses your business’ borrowing power. Some of the reasons why your lender may consider approving your business for more or less funds include:

  • Your business’ credit score: this indicates whether your business has been reliable when it comes to repaying other debts, including past loans, and whether it’s been bankrupt previously
  • Your business’ turnover: the more revenue your business generates, the more it can afford to take on and repay in instalments
  • Your business’ assets: if your business is backed by assets, or if you own property, it may be eligible for a larger loan
Should I take out a business line of credit instead?

A business line of credit is a viable alternative to the standard business loan which also offers a unique level of flexibility. This is because, rather than being granted a lump sum and gradually repaying it in instalments, your business will be approved for a certain limit and you’ll be able to withdraw funds whenever you like up to that maximum limit. The other primary benefit is that this type of finance enables you to only pay interest on the funds you use. You can compare line of credit business loans with Savvy.

Are there any grants available for my small business?

Yes – there are many grants on offer for small businesses both at the federal and state levels of government. These can change frequently, so it’s always important to review your state government’s website, as well as that of the Australian Government, to ensure you’re not missing out on much-needed assistance. Some of these include Regional Development Australia, Indigenous Business Australia and the CSIRO Kick-Start program.

Can I use a private business loan to consolidate other debts?

Yes – a common reason for businesses taking out loans is to consolidate debts currently outstanding. These may come from a variety of sources and, in some cases, could have very high interest rates. By consolidating these into one payment, you can simplify the process of managing multiple ongoing payments on different schedules by turning them into one singular payment, potentially saving on interest and fees in the process.

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