Home > Business Loans > Business Loans Sydney
Business Loans Sydney
Compare a range of loan deals with Savvy to help you find the best one for your Sydney business here.
Author
Savvy Editorial TeamFact checked
The features and benefits of Sydney small business loans
No security needed
You can compare business loans without any need to put up an asset as collateral for your loan, with our lending partners offering unsecured business loans.
Pay at your own speed
Choose your loan’s term to align with your business’ ability to repay the debt, with lengths as short as three months and as long as five years (and everything in between) available.
Borrow up to $500,000
You’re able to take out small unsecured business loans in Sydney for as little as $5,000, but you can also apply for larger amounts into the hundreds of thousands for your business.
Access competitive interest rates
Compare loans on the market to help you determine which is the most affordable, with competition between financiers helping you secure the best interest rate for your loan.
Same-day approval possible
Some lenders can offer you the ability to apply for your loan, get approved and receive your business loan funds very quickly, with approvals available as soon as the same day you apply.
Available to businesses with six months of trading
We work with lenders who can offer new business loans in Sydney with as few as six months of trading under their belts, which can be a great help to stay on top of your expenses.
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?
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 to compare business loans
Loan amount
First of all, there’s little use applying for a business loan if your lender isn’t offering the amount you’re looking for. While the maximum can reach as high as $500,000, other lenders may only be willing to grant $200,000 to $300,000. Also, if you’re only looking at small Sydney business loans, not all lenders will go as low as $5,000, so you should always compare this too.
Loan term
Additionally, you should always make sure the lenders you’re comparing offer the loan term you’re looking for. While available repayment periods range from three months to five years, some lenders will set higher minimums of one year and lower maximums of two or three. You shouldn’t sacrifice comfort in the process of choosing your loan.
Loan type
Australian business loans aren’t the only finance type you can compare with Savvy. You can also consider business lines of credit and overdraft facilities, which allow you to get approved up to a set limit and withdraw funds from that line whenever suits you.
These present more flexible options for businesses who prefer the freedom to draw at their convenience. However, interest rates can be higher on these finance types.
Repayment flexibility
It’s important to afford yourself a level of flexibility when it comes to signing onto your business loan. If your business’ revenue increases during your loan term, you should be able to pay your loan out early without facing any penalties for doing so.
Fortunately, a number of our business financiers don’t charge early repayment fees, which could be substantial in some cases.
Fees
Different business loans will come with different fees. The most common (and often significant) cost charged by lenders is the application or origination fee, which can be as much as 3% of your loan’s amount. Some loans will also charge break fees if you pay them out early, while others may charge a monthly or annual service fee for keeping your account running.
Applying for your business loan, step by step
It’s important to enter your business loan application with an understanding of how it all works from start to finish, which will give you more clarity on how to improve its speed.
Although it may not be a long and complicated process in many situations, you’re always better off knowing each step of the way rather than applying blindly.
Read through the process here to familiarise yourself with how everything works and ensure you’re prepared when the time comes to apply.
If you want to see a more practical demonstration of the cost of your business loan across different term lengths and interest rates, you can use Savvy's business loan repayment calculator before you apply.
Choose your lender with Savvy
With a variety of lenders and loans to choose from, comparing your options thoroughly with Savvy will help you make a more educated decision on which is best for you.
Gather your documentation
For most loans below around $200,000, you’ll likely only need your business’ bank statements, ABN/ACN and GST registration, personal ID and record of rent.
Apply and receive an outcome
Once you’ve gathered these, you can submit them alongside your online application form and receive an outcome in as little as one hour.
Have your funds advanced to your account
When your lender approves your application, they’ll send through a contract for you to sign, after which they can advance the funds to your account as soon as on the same day.
Frequently asked Sydney business loan questions
You can claim a portion of your business loan repayments as a tax deduction, namely the interest paid. Your loan principal itself cannot be claimed. If you plan to do so, make sure you keep a detailed copy of your repayments so you can avoid any confusion around your tax returns.
Yes – businesses can be approved for multiple loans at the same time. However, having loans already on your books when applying for another can reduce your chances of approval in some cases. If a lender believes your business poses too great a risk, you won’t be approved.
You can look to refinance your business loan if you come across a better deal midway through your repayment term. This involves taking out a new loan to cover the cost of your current loan, paying it off and taking on its repayments as a result. You may also wish to refinance for a variety of other reasons, such as to extend your term to reduce your repayments (which will cost more overall) or consolidate debts by accessing business equity.
If you opt for a larger loan, the business financials you may be required to submit alongside your application may include:
- Profit and loss statements
- A business plan which forecasts future revenue
- Accounts receivable and payable
- Balance sheets
- ATO Integrated Client Account (ICA)
Yes – there are business loans available which enable you to produce an asset as collateral for your loan, such as property, to increase your borrowing range significantly and reduce your interest rate. You can also do this when you’re looking to buy specific equipment, known as equipment finance, which you can do right here through Savvy.
Going through a Sydney business loan broker for your finance deal can help you out significantly. In doing so, you’re enlisting the help of a professional who can do all of the legwork for you, as well as negotiate a great deal with their partnered lenders. As such, they can be a great option for businesses. However, these brokers operate online, so you’re not limited to those based in New South Wales.
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.