Personal Loans for Business

Compare flexible personal loans right here with Savvy to help cover your business expenses and repay them at your own speed.

Written by 
Savvy Editorial Team
Savvy's content writing team are professionals with a wide and diverse range of industry experience and topic knowledge. We write across a broad spectrum of finance-related topics to provide our readers with informative resources to help them learn more about a certain area or enable them to decide on which product is best for their needs with careful comparison. Meet the team behind the operation here. Visit our authors page to meet Savvy's expert writing team, committed to delivering informative and engaging content to help you make informed financial decisions.
Our authors
, updated on October 5th, 2023       

Fact checked

At Savvy, we are committed to providing accurate information. Our content undergoes a rigorous process of fact-checking before it is published. Learn more about our editorial policy.

Personal Loans Banner

The features and benefits of personal loans for business

Secured or unsecured options

If you don’t have an eligible asset for loan security, there are plenty of unsecured personal loans available for business purposes that you can choose from.

Borrow up to $750,000

Depending on the loan and lender you choose, you’ll be able to borrow anything from $2,000 to $75,000, making them versatile for expensive or small needs.

Pay it out ahead of schedule

You’re not restricted to your loan term when it comes to repaying your finance deal, either. Most of our lending partners will allow you to complete your loan payments early free of charge.

Compare rates and save

You can compare a variety of low rates specific to your profile when it comes to your personal loan regardless of whether it’s secured or unsecured.

Choose the length of your loan

Loan terms as short as 12 months are available to maximise your overall savings on interest and fees, while you can make your repayments more manageable over a term up to seven years.

Use it however you like

Whether you need to buy business equipment, help fund your employees’ salaries or pay for renovations around your building, a personal loan can be used to fit any purpose.

Types of personal loan

Why compare personal loans through Savvy?

The ways to maximise your personal loan borrowing power

Common personal loan questions from business owners

What’s the difference between a personal loan and business loan?

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.

What if I don’t have my last two years’ tax returns?

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

Can I use a business overdraft instead?

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.

If my business has bad credit, can I still get a personal loan?

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.

Can Centrelink benefits count towards my overall income?

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.

Are my interest rates fixed or variable?

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.

Can a guarantor help my application if I’m starting up a business?

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.

Helpful personal loan guides

Still looking for the right personal loan?

Personal loans come in all shapes and sizes, so read more about the ways you can use them, as well as how they might work for you.