Quick Business Loans

Name: Quick Business Loans
Creator: Savvy
Published: 2021-11-09T14:35:17+10:30

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Written by , updated on September 21st, 2023

There are many options on the market when it comes to securing a loan for your business, but what if you need the funds fast? Find out about the quickest options for business loans in Australia and how you can compare the best offers on the market to find the best loan to suit your needs.

What quick options are available for business loans?

If you’re on the hunt for a business loan and you need a quick solution, an unsecured business loan is your best bet. Unsecured loans are a very common type of business loan that deal with smaller amounts and have a much faster turnaround time compared to other business finance types. While lenders can potentially take weeks or even months to process an application for a large secured loan, an unsecured loan can normally be arranged in a matter of days, with many lenders offering a 24-hour turnaround from application to payment.

They have higher interest than many long-term loan options such as a secured loan or a commercial mortgage, but there are benefits that come with that cost. For one thing, they’re much easier to get approved – the higher interest rates lower the risk for the lender, which means they’re far more willing and able to approve an unsecured loan quickly, ensuring that they’re far more accessible to smaller businesses and start-ups.

Unsecured business loans are also designed to be paid off more quickly. Long-term loans are generally geared to be paid off over the space of a decade and can have penalties for early repayments. Unsecured business loans, however, are intended to be paid off faster and have small loan terms of up to one to three years (and often even shorter). As such, they’re perfect for a quick injection of temporary funding that you want to have paid off sooner rather than later. They’re also very handy for start-ups or small businesses in need of quick loan finance.

What factors affect how quickly a loan gets approved?

One of the most time-consuming factors in a loan assessment is the process of assessing the risk involved in a loan – the chance that the lender might end up losing money by offering a loan. For a large business loan like a secured loan, there’s a detailed process of examining your business and its finances and determining whether to approve a loan, and what kind of terms to offer. Factors such as the age of your business, the size of its customer base, the growth of your industry and the visibility of your business all come into play. These factors don’t make an application go quicker or slower – it's the fact that they’re being reviewed and assessed that takes time.

Unsecured loans work around this risk by charging higher fees. Because the loans return more, this offsets the risk somewhat – like the lender is taking an insurance policy out on your loan. As such, while a lender reviewing an unsecured loan application will still run checks and look at credit records, they don’t need to be as rigorous as the process for a secured business loan might be. They can also be a lot more tolerant of things like a bad credit history, which ensures that checks are processed faster.

It’s also worth knowing that in the last decade, the speed at which a loan can be approved has improved significantly with the development of secure, high-speed internet services for things like bank records and credit information. These have made the loan application process travel much more easily and quickly than in years gone by. These days, some lenders can offer nearly instant decisions on their loans, as little as one to two hours after you apply. There are also different types of lenders who may be able to offer a speedier application, approval and funding process compared to standard banks, such as peer-to-peer loans which are assessed by individual investors.

Savvy can help you out with the hunt for a fast business loan in Australia. Our website allows you to compare unsecured business loans from some of the country's top lenders and choose the one that best suits your situation. Start your comparison process today before committing to the first business loan you see; it can save you hundreds or thousands of dollars to do your research.

Types of business loan

Unsecured business loans

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.

Secured business loans

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.

Small business loans

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.

Low doc business loans

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.

Lines of credit

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

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.

Equipment loans

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.

Supply chain finance

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.

Inventory finance

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.

Overdraft facility

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.

Cash flow loans

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?

100% free service

It won't cost you a cent to compare a range of business loans through Savvy, enabling you to come back at any time.

Reputable lending partners

You can compare business loan offers through a range of trusted Australian lenders, giving you more confidence in the process.

Online comparison process

You can fill out our simple online form to generate business finance quotes tailored to your business' needs in minutes.

How do quick unsecured loans compare to other types of loan?

No collateral

No deposit

Easy application

Smaller amounts

Frequently asked questions about quick business loans

How much can I borrow with an unsecured business loan?

The maximum amount a lender will offer you will depend on your business and its situation. Unsecured loans can be offered up to $200,000 to $300,000 on an unsecured business loan to the right business. You can use our loan repayment calculator to help you work out what different loans may cost you overall.

How quickly can I expect to see the funds from an unsecured loan?

Because a lot of the application process can now be handled electronically (including money transfers), you’ll generally see the money from business loan very quickly. It varies from lender to lender, but unsecured loans can normally have funds to you within a few days and, in some cases, within hours of you signing a loan contract. Of course, your lender can’t control how long your bank takes to process the transfer.

What can I do to make my application go smoothly?

One of the best things to do to make your loan application go through quickly is to keep good business records – meaning it’s a quick and easy process to find and send through supporting documentation. Looking after your credit rating will also help, as lenders are generally pretty comfortable loaning to a business with a top-level credit score – so it always pays to make sure your bills and debts are paid on time, and you don’t use too much of your available credit.

Do I have options for a quick business loan if my credit is bad?

Yes – you can get a specialised type of loan called a bad credit business loan, which can also be unsecured. The interest rates are higher and the application might be a little slower than a standard unsecured loan, but you should still have access to quick loan funding even with a less-than-perfect credit rating.

Does my choice of lender affect how quick I can get a business loan?

Yes – smaller online lenders strive to make their application process quick and easy and they’re far more tolerant of unusual circumstances like seasonal income or poor credit scores than larger lenders such as banks. The fact that they generally operate entirely online also helps, as everything can be done from your home.

Can I get a quick unsecured loan for a start-up business?

Yes – there are small unsecured loans available for start-up businesses and, like any unsecured loan, they’re quite quick to apply for and get approved.

Do I have to be operating in a big city to get approved for a business loan?

No – you don’t have to be a business looking for finance in Sydney or applying for a loan in Melbourne. Businesses all over Australia, whether in capital cities or out in the regions, are able to access the finance they need with an online business loan. Lenders are more concerned with your business’ ability to cover its loan repayments and meet the required criteria than where it’s based.

What can unsecured business finance be used for?

Whether you’re looking to purchase a business like a microbrewery or taking out a loan for a purpose as simple as adding to your existing cashflow, a business loan can help you achieve your financial goals. You might even want a loan to consolidate any other outstanding debts your business may have into one simple payment to make your ongoing expenses easier to manage.