Small Business Loans

Find and compare from a range of loan offers for small businesses right here with Savvy.

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, updated on September 21st, 2023       

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The features and benefits of small business loans

Loans from $5,000 to $500,000

Business loans come in all shapes and sizes, from small cash advances of just $5,000 up to $500,000 or more without the need for any security.

No asset collateral

Unsecured business loans require no assets to be used as collateral, meaning your business’ valuable equipment or even your home remain separated from the loan.

Choose your repayment term

You can opt for a short-term loan as short as three months in length or arrange an agreement to repay your financing over as long as five years, ensuring you can stay comfortable with repayments.

Money transferred in 24 hours

You can have access to funds in your account as little as one day after submitting your application, with pre-approvals coming inside the hour.

Low rate and fee options

There are plenty of lenders in the market vying for business and can offer more affordable interest rates and lower fees to the right borrowers to help you save.

Simple online application

Your online business loan application will only take a matter of minutes to complete, with a simple application form on your lender’s site and a few documents enabling you to send it off quickly.

As few as six months trading

Your business doesn’t need to be well-established by the time you apply for your loan: we’re partnered with lenders who can offer to businesses with just six months’ worth of trading.

Lines of credit available

If you want a more flexible source of funds that you can draw on whenever you like, and only pay interest on what you use, a business line of credit might suit your needs.

Types of business loan

Why compare business loans through Savvy?

Top tips for maximising your small business loan approval chances

Improve your credit score

One key area that lenders look to when assessing loan applications from small business owners is their business’ credit score. Depending on the type and age of the business that you own, they may also look to your personal score. By boosting this score, you give yourself a greater chance of approval for a greater sum and lower rate. You can do this in several different ways, such as paying bills on time and lowering business credit card limits.

Display positive cashflow

It seems simple, but it’s true: the more revenue you generate as a business, the more likely you are to be approved for a business loan. This is because successful businesses and those with consistently high turnover are considered safer and lenders will be more willing to approve them, particularly for greater sums and at lower rates. If your business is earning a comfortable amount each month and has been doing so for a sustained period, you’ll stand the best chance of approval.

Submit a comprehensive business plan

Some lenders will ask for a business plan as part of the application process, which forecasts your business’ revenue over the coming months or years. By preparing a thorough plan which clearly demonstrates how your business will achieve these predictions, rather than simply stating you expect to generate a certain amount of cash, you can increase your lender’s confidence in you and boost your overall approval chances.

Show verifiable past credit

One of the simplest ways to increase your chances of small business loan approval in Australia is to have a record of repaying business loans. This is especially the case if you’ve done so previously with the same lender, as ease of approval is increased significantly when you’ve established a relationship with a particular financier. If they were happy with the way you serviced your debt previously, you’re more likely to be approved on favourable terms this time around.

Frequently asked small business loan questions

Who’s eligible to take out a business loan?

Specific eligibility criteria for business financing will differ between lenders, but the following points represent the minimum criteria you’re likely to be assessed on by your lender to determine whether you qualify for financing:

  • At least six months’ worth of trading before applying
  • Minimum monthly turnover of $5,000
  • Able to provide the required documents
  • Property ownership may be required
  • May enforce a minimum credit score (500)
  • No prior bankruptcies
What documents will I need to apply?

Similarly, the documentation required by lenders is likely to differ. As a minimum, you’ll need to supply your active ABN (or ACN) and GST registration, business bank account details and personal identification. You’ll typically require more documents with larger loans, which can include the following:

  • Business plan
  • Profit and loss statements
  • Balance sheets
  • Tax returns
  • Accounts receivable and payable
  • Integrated Client Account (ICA) details
  • Interim current financial year company financials
Can I make additional repayments towards my loan?

Yes – we’re partnered with a range of unsecured small business loan financiers who can offer borrowers the option to make extra contributions to their loan, and pay it out early, without incurring any penalty for doing so. This can be incredibly helpful, as it enables borrowers to cut down on the interest paid towards their loan considerably.

For example, a $50,000 loan over three years at 11% p.a. would cost $1,637 per month. Rounding that figure up to $2,000 would save your business almost $1,900 in interest alone and reduce your loan term by seven months. To help you work out how much each business loan might end up costing you monthly and overall, you can use Savvy's business loan repayment calculator.

Are business loans tax-deductible?

Partly, yes – the interest you pay on your business loan is able to be claimed as a tax deduction, which can help you save a significant amount of money over the course of your repayment term. Make sure you have a record of all loan repayments made throughout the course of the financial year, as these will help you confirm the tax deductions and potentially hand you back a significant sum at the end of the financial year.

Are there business loans available for my startup?

Yes – there are specialist lenders in the market willing to approve small startup business loans. However, because these loans are considered a greater risk than standard business loans, you’re unlikely to be approved for much more than $30,000 and subject to a relatively short loan term and higher interest rate. The financial records of the business director/s will be assessed in place of the business.

Are there grants available for small businesses?

Yes – both the Australian federal and state and territory governments offer a range of grants for small businesses to help them get off the ground or continue to run. Some of these include:

  • The New Business Assistance Scheme (with NEIS)
  • Regional Development Australia
  • CSIRO Kick-Start program
  • Entrepreneurs’ Programme
  • Research and Development (R&D) Tax Incentive
Is there any support for Indigenous business owners?

Yes – Indigenous Business Australia (IBA) is an organisation run by the federal government designed to provide support to Indigenous Australians starting or running their small business or looking to buy another. This can come in the form of additional finance for eligible businesses, as well as other advice and educational resources for First Nations people. Aside from this, loans for Aboriginal and Indigenous businesses are available from lenders across the country.

What is invoice finance?

Invoice finance is an alternative type of financing for businesses which involves selling your outstanding invoices (money owed to you) to a third party. They’ll provide you with 70% to 90% of the value of the invoices sold upfront, after which they pursue your clients for the full invoice. Once they’ve received this, they’ll release the remaining value to you, with their service fees subtracted. These are useful for boosting your business’ cashflow immediately.

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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.