No property security
Unsecured business loans
Borrow a lump sum against how your business trades, not against your house. Comparing is free and it does not mark your credit file.
Unsecured Business Loans at a glance
- Amount
- $5,000 to $1,000,000+
- Term
- 3 to 36 months
- Security
- No property security. A director's guarantee is standard.
- Time to funding
- Same business day to 3 business days once your documents are in
- Typical use
- Stock, wages, an ATO bill, a deposit on a job you have to fund before you invoice it
- What you'll need
- ABN, Australian photo ID, and 6 months of business bank statements
What it is
What is an unsecured business loan?
An unsecured business loan is a lump sum you repay over a fixed term with no property offered as security. The lender reads how your business trades - the money moving through your bank account week to week - instead of valuing something you own. You still sign a director's guarantee, so you are personally on the hook if the business cannot pay. That is the trade-off for keeping a mortgage off your home.
Repayments are usually weekly or fortnightly by direct debit, and most terms sit between 6 and 24 months. Because the lender has no asset to fall back on, the rate is higher and the term is shorter than a secured loan. What you are buying is speed and the fact that your property stays out of it.
Worked example
A worked example
- A Brisbane cafe borrows $50,000 over 12 months to fit out a second site.
- At an indicative 14% p.a. the interest cost is $7,000, so the total payback is $57,000.
- Repaid weekly across 52 weeks, that is about $1,096 a week.
- Repaid monthly across 12 months, it is $4,750 a month.
- If the second site turns over $6,000 a week, the repayment is roughly 18% of that site's takings.
Numbers are rounded and shown to explain the maths, not to quote you a price. Your rate depends on the lender, your turnover and your credit file.
Is this right for you?
Is an unsecured business loan right for you?
Good fit if…
- You need the money inside a week and cannot wait for a property valuation.
- Your business banks more than $6,000 a month, consistently.
- You do not own property, or you do not want a mortgage registered over the property you have.
- The money has a job that pays for itself - stock you will sell, a contract you will invoice.
- You can cover a weekly direct debit out of normal trading, not out of hope.
Probably not if…
- You want the cheapest rate available. Secured lending is cheaper. Full stop.
- You need more than 3 years to repay it. Unsecured terms are short by design.
- You are buying a truck, a ute or a machine. Equipment finance uses the asset as security and costs less.
- Your turnover swings hard month to month and a fixed weekly debit would break you. A line of credit fits that better.
- You are borrowing to cover a loss you have not fixed. A loan moves the problem forward, it does not solve it.
What it costs
What an unsecured business loan costs
Pricing is set by the lender on the day, not by us. We do not add a fee to what you pay. Here is the shape of the cost.
- Interest rate
- Our panel prices business finance between 6% and 20% p.a. Unsecured sits at the upper end of that band because there is no asset behind it.
- Establishment fee
- Charged once and usually deducted from the amount advanced, so you receive slightly less than the face amount. Across the unsecured panel it runs 1.5% to 4% of the amount advanced, and most lenders set a $395 minimum.
- Ongoing fees
- Some lenders charge a monthly account fee, others build everything into the rate. Compare the total payback figure, not the headline rate. Where one is charged it is usually $10 to $25 a month.
- Paying it out early
- Some lenders rebate the unearned interest, others hold you to the full agreed payback whenever you exit. On a 12-month loan this is the single biggest difference between two offers that look identical. Ask us before you sign. Roughly half the unsecured panel rebates the unearned interest in full; the rest hold you to between 60% and 100% of the interest still to run.
Bizzloans is a broker, not a lender. The lender that funds your deal pays us a commission, which we disclose to you. You pay us nothing to compare.
Eligibility
Who can apply
- A valid ABN
- Current Australian photo ID
- In business more than 6 months
- Monthly turnover above $6,000
- Bad credit considered
Don’t meet these? Call us — we have lenders for most situations, and we’ll tell you straight if we don’t.
Book a callWhat you'll need
What you’ll need
No documents
To get a quote
- Nothing. Tell us the amount, what it is for, and your rough monthly turnover.
- No credit file is pulled to compare, so looking at your options does not mark your file.
Once you pick a lender
To settle
- 6 months of business bank statements, as PDFs or a read-only bank feed
- Your ABN and a current Australian photo ID for each director
- Your most recent BAS, if the lender asks for it
- A signed direct debit authority
- The loan agreement and director's guarantee, signed electronically
How it works
How it works
5 minutes
Tell us what you need
Amount, purpose, how long you have traded and your monthly turnover. That is enough to rule lenders in or out. No credit check happens at this stage.
Usually the same day
We compare the panel
We take your file to the lenders whose rules you actually fit, rather than firing it at everyone and leaving enquiries all over your credit file. You get amounts, rates and terms side by side.
1 to 3 business days
Sign and settle
Pick an option, sign the agreement and direct debit, and the lender funds your business account. Clean files can settle the same day. A tax debt or a messy statement adds a day or two.
This vs the alternative
Unsecured loan vs line of credit
These two get confused constantly, and picking the wrong one is expensive. The difference is not the rate. It is what you pay interest on.
| Unsecured business loan | Business line of credit | |
|---|---|---|
| How you get the money | One lump sum, up front | A limit you draw from whenever you want |
| What you pay interest on | The full amount, from day one | Only the balance you have drawn |
| Repayments | Fixed weekly or monthly, set at the start | Interest on the drawn balance, plus a monthly facility fee |
| Can you re-use it? | No. Repay it and you apply again. | Yes. Repay and the limit is available again. |
| Term | 3 to 36 months | Ongoing, reviewed every 12 months |
| Best for | A one-off cost you can name today | Gaps you cannot predict - stock, wages, slow payers |
If you can name the amount and the reason today, take the loan. If you are covering a gap that keeps reappearing, take the line.
What the lender is actually reading in your bank statements
Unsecured lending lives and dies on bank conduct. Knowing what an assessor looks for tells you whether to apply now or wait a month.
- Average monthly credits, and whether they are steady or lumpy across the last 6 months.
- Days in negative. A handful is normal. Twenty out of thirty is a decline.
- Dishonoured direct debits. One is a bad week. Four is a pattern.
- Existing lenders. Two or three current facilities being debited daily will cap what anyone else will lend.
- Gambling transactions. Small and occasional is usually ignored. Regular and material is not.
FAQ
Unsecured Business Loans questions
What does unsecured actually mean?
Will comparing hurt my credit score?
How fast can I actually have the money?
Can I get an unsecured loan with bad credit?
How much can I borrow?
Do I need to say what the money is for?
What if I want to repay it early?
Are repayments weekly or monthly?
Can I have two unsecured loans at once?
Is Bizzloans the lender?
A person reads this, not a scoring engine
A named advisor takes your file to the lenders on the panel that fund your industry and your turnover — and tells you plainly when an unsecured business loan is the wrong answer and what to use instead.
Ready when you are
Compare Unsecured Business Loans today
Comparing is free, you’re never locked in, and checking won’t affect your credit score. If we can’t help, we’ll tell you that too.
