Personal Loans for Business

Business owners may also look to unsecured business loans when it comes to obtaining finance. These work in a similar way to personal loans but hold several key differences. Borrowing ranges are far greater for these loans, with amounts ranging up to $300,000, but their usage is limited to business purposes only. This stands in contrast to a personal loan, which can be used for both business and personal purposes. If you’re only looking for a smaller loan amount and have a strong personal credit score to fall back on, though, you might find that a personal loan is the best option for you.

If you’re lacking these documents, you’ll be required to apply for a low doc loan. These sole trader loans are specific to those who aren’t able to meet the conventional documentation criteria and allow you to instead submit alternative documents such as BAS, bank statements, profit and loss statements, ABN registration and GST registration. You may also be required to supply an income declaration signed by your accountant. Because these loans are considered more risky, you’ll be charged a higher rate and will likely be more restricted in your borrowing capacity

You can – a business overdraft on your account is another finance option that sole traders may look to take advantage of. These essentially function as a personal loan attached to your bank account but allow you to withdraw money beyond $0 up to a pre-approved limit whenever you like. You’ll only pay interest on the amount you withdraw and won’t have any set repayment schedule. However, these often come with higher interest rates than loans, so they may be more suitable for smaller amounts you can quickly access and repay.

Yes – as long as you’re personally earning enough to support your loan’s repayments, you can be approved for financing for your business. This is because personal loans rely on your individual profile, rather than that of your business, when assessing your application.

Yes – we work with lenders who can accept certain Centrelink benefits as part of your total earnings. These are generally limited to consistent payments that aren’t likely to change throughout your loan term, such as aged, disability and veterans’ pensions and carer and single parent payments. You can utilise JobSeeker as a supplement to family tax benefits or a low income but can’t use it on its own, while you also can’t count Youth Allowance in your total income.

We compare both fixed and variable interest rates on personal loans. Fixed rates are the most common, which lock your rate in at the beginning of the agreement and hold it in place until its conclusion. These are useful for maintaining stability in your repayments, which is a desirable trait for many borrowers. Variable interest is open to change across your term, which can potentially allow you to capitalise on rate drops. It’s ultimately up to you to determine which option is the best for your situation.

Yes – guarantors guarantee the repayment of a loan on your behalf, meaning they’ll be required to pay it if you aren’t able to do so. This is particularly useful if you’re starting your own business, which is seen as risky in terms of your ability to consistently repay a loan, as your guarantor will instil more confidence in your lender.