Many business owners either do not own a property or they already have a large mortgage on their property and can therefore not borrow any further funds. Some business owners do have a property but do not want to use it a security as they want the business to be able to get funds on it’s own merits. The lender will look at your business’s performance, eg bank statements, turnover etc.
Applying for an unsecured business loan is an easy way to get a credit line or a business loan from $5000 up to $400,000 for your business. Usually, you are able to apply for one month’s business revenue, so if your average monthly income is $10 000 you can get up to $10K, If your sales are $150 K per month you can get a loan facility for up to $150K.
Most businesses can qualify. Some of the most common industries using these facilities are hospitality ( cafes, restaurants), Retail (eg. Fashion), hairdressers, manufacturing, import or/and export businesses, real estate etc.
Cash flow, Working Capital, to pay a tax bill (tax or BAS), take advantage of discount buying in bulk, import from overseas, finance exporting, finance business expansion, pay suppliers, pay staff, hiring extra staff, marketing, renovations, a revolving line of credit, upgrade business equipment, purchase vehicles ( secured against the vehicle may give a a lower rate)
These loan products are intended as short-term to medium term loans. The interest rates are a bit higher than secured loans and the repayment terms are 3 months to 15 months. Even through these loans can be used as a quick fix for cash flow problems, you should consider if you business just requires extra funds and is otherwise a stable and growing business or whether your business is struggling. These loans enable a growing business to take advance of opportunities that may be missed without access to this funding. Example; a shoe retailer has the opportunity to buy shoes in bulk from Italy at a discount of 20%, but they need to purchase at least $100 K of shoes. By getting the 20% discount, they were able to make $20 K more profit. Even after paying interest for a couple of months on the $100 K loan, 1.9% per month – so 3.8% for 2 months, they made over $16K extra profit by taking advantage of an unsecured business loan.
A straightforward business loan is a one–off payment. You receive the complete loan amount in your bank account in one go and you then pay this amount off (capital plus interest) over the loan term. A credit line gives you an agreed loan amount. You can take as much or as little of this total loan facility as you like. A credit line allows you to draw down money multiple times, given you access to extra funds when you need them. You only pay interest on the amount you are borrowing, not on the total agreed credit line amount.
In general, use a business loan if you need one large lump sum immediately and use a credit line if you want access to money over time.
These unsecured business loans do not require a property as a security. You can receive instant funding with a fast and simple application process. By completing a simple application form (this can usually be done on-line, we will give you an answer within 24 hours and arrange your funds within just a few days)
These loans are Tailor-made business loans for your needs
Funds are accessible 24/7 via the lenders unique online portal.
The application process is pretty fast, certainly a lot faster than with a traditional bank and if you compare this process with a secured business loan.
There are only four simple steps to take.
- Step 1-Call us to make an initial enquiry
- Step 2-Register and enter basic personal and business information
- Step 3- Connect your business bank account (or supply bank statements)
- Step 4- Connect your accounting software eg (Xero, Reckon, MYOB) or upload your financial documents
Our criteria are different from those of traditional credit providers. We focus on your recent business performance, not your historical financial situation. We’ve streamlined the process so you can quickly and easily apply for a online business loan.
Here are the 5 things you need to qualify:
- You have –Depending on the loan provider, your business should have a minimum turnover of $5000 or $10 000. One provider requires just an annual turnover of at least $50,000,
- You have -Depending on the loan provider you must have been operating for at least 6 months,12 months, in some cases less than 6 months.
- You have- An Australian online bank account and bank statements
- You have -Online accounting software, eg Xero, Reckon, MYOB or financial documents from up to the last 2 years ( or min 1 year, less maybe possible)
- Your business is registered in Australia
- Credit line amount of up to one month revenues
- Some providers give you up to 3m months to decide how much and when you want to withdraw the funds
- Renew the credit line after three months by simply updating your profile
- Most providers have no fees to establish or maintain your credit line.
- Some providers have no charges if you don’t use your credit line.
- Take your funds whenever you need and repay them flexibly.
- Each draw down has a duration of six months with a monthly amortization
- Full flexibility – withdraw up to once a day and repay anytime free of charge
- Repayments replenish your existing credit line and you can apply for additional funding after three months
- Use the funds to improve your business.