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Business Finance

Flexible, Functional Unsecured Business Loans

Unsecured Commercial Loans are an extremely flexible and functional financing product where no security is available for a secured product. Many operators may have purposes, services and circumstances for unsecured financing and despite rates being higher than secured options, we can achieve highly workable solutions at competitive rates.

Business Finance Flexible, Functional Unsecured Business Loans
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Comparison
Compare Unsecured Business Finance Interest Rates with other Options

Unsecured credit can be required for intangible expenditure and non-asset services and acquisitions. As specialists in commercial credit, we offer a comprehensive portfolio of products and we have an alternative worth considering. Compare the interest rates we are currently achieving on credit options included unsecured funding to assist plan and prepare to brief our consultants.

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Disclaimer: This chart is provided solely for comparison purposes only. The interest rates on unsecured loans and other lending products are to be used as a guide only. The fees and charges applied to unsecured and other loans may not all be included in the calculations. The repayments calculated and the interest rates as shown may vary from any offer of an unsecured or other loan you may be made by a lender. Using this comparison calculator function is not an application for credit, the results are not a quote or offer and using this device does not indicate an approval.

29 September

Today's best rate

Finance Equipment From

4.99 % Fixed

* The interest rate is calculated on a secured loan for commercial use, effective 29/09/2023 and subject to change. Warning: the interest rate is only true for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts may result in a different interest rate.

29 September

Today's best rate

Finance Equipment From

4.99 % Fixed

* The interest rate is calculated on a secured loan for commercial use, effective 29/09/2023 and subject to change. Warning: the interest rate is only true for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts may result in a different interest rate.

Plan Your Finances
Get Estimate Repayments for Unsecured Commercial Finance

For pre-purchase and pre-application budgeting and planning, use our calculator to work up estimated repayments for unsecured credit.

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Flexible and Risk-Free
Workable Solutions - Unsecured Commercial Loans

An unsecured form of credit is used where security in the way of physical assets are either not available or are not accepted by the lender as suitable collateral for the funds. The funding may be for the purpose of expenditure on particular items or as a line of credit for ongoing support.

As no physical assets are available as security, lenders may assess the application based on the cash flow of the operation. The strength of the operation’s cash flow may form the lender’s guarantee for the funding. Some collateral by way of other guarantees may be requested in some cases.

While a more specialist type of credit than the more popular secured credit products, unsecured funding is offered by many banks and non-bank credit providers. Every application is assessed on an individual basis and the interest rate applicable, terms and conditions based on that assessment. The purpose of the funding also forms an integral part of the application approval process.

Our consultants are specialists in all commercial credit products and can source and negotiate workable unsecured funding, structured to meet the specific requirements of the individual operator.

  • Fixed Terms to facilitate long term planning.
  • Fixed Interest Rates to provide confidence moving forward.
  • Fixed Repayments to enable clear budgeting.
  • Flexible loan limits.
  • No Deposit an option to free up cash flow.
Affordable Unsecured Business Financing

Exploring the Benefits
Tax Benefits of Unsecured Financing

The tax deductions available for unsecured funding may depend on the purpose of the funds. Any GST payable would be claimable. The interest portion of the repayments and any fees and charges would generally be tax deductible.

The tax deductibility of the balance of the repayments, after interest is claimed, may depend on the purpose of the credit. Where depreciable goods are being acquired, the tax benefit is realised through depreciation of the asset. For other purposes, operators are advised to consult with their accountant or refer to ATO rulings for their specific circumstances.

Simplified Process
How to Apply for Unsecured Commercial Financing – Docs, Data, Details

As with applying for all types of commercial funding, operators will need to provide a range of information and documentation for our lenders. As the cash flow strength may be critical to the application assessment, providing the appropriate financials including tax returns, BAS returns, bank statements and annual accounts will be of particular importance.

Details of the purpose for the credit will also be required. Applications can be submitted and approved prior to committing to provide confidence.

Acquire Unsecured Business Loans

Exploring Types and Purposes
Types of Purchases and Purposes for Unsecured Financing

Unsecured credit may be sought for a range of expenditure items where physical goods and assets are not available for security. These may include:-

  • Cash flow support during temporary shortage periods.
  • Staff training and development courses and programs.
  • Expertise and services for product research and development.
  • Buying out a partner in the operation.
  • Injecting capital for general commercial growth purposes.
  • Marketing and promotional programs.
  • Installation and upgrades of some IT systems not considered suitable security for secured credit.
  • Purchase of stock, components and other resources.
  • Purchase of used vehicles or equipment not accepted as suitable security.
  • Acquisition of machinery and equipment for refurbishment, not suitable security for secured credit.
Obtaining The Best Commercial Financing

Securing Success
How to Obtain Best Unsecured Loan for your Venture

While most banks and non-bank credit providers do offer some form of unsecured credit, they may only approve small limits and may have strict guidelines for application approvals. Using our services may greatly assist operators to instantly connect with the providers that suit their specific requirements.

With rates on unsecured products higher than secured products due to the higher risk, our expertise and sharp negotiating skills can be invaluable in ensuring the best rate is achieved and the most workable solution obtained.

  • Access to 80+ banks and non-bank lender.
  • Access to lenders that approve higher credit limit.
  • Access to more flexible credit conditions.
  • Access to the right product and the right lender that matches your needs.

Accelerate Your Venture
Fast Approval of Unsecured Commercial Loan Applications

Secure approval for unsecured credit with our streamlined online application process.

Many applications are approved within 24 hours. Speak with us or apply online today!

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FAQs
Unsecured Commercial Loan Interest Rates

Secured loans are suited to the purchase of specific goods or assets such as motor vehicles, trucks and equipment. With a secured loan, the goods being purchased are accepted by the lender as the security, guarantee or collateral against the funds being borrowed. Lenders may request additional guarantees depending on specifics of the application. Unsecured loans are typically sought for non-asset acquisition purposes or where the goods being purchased are not accepted as suitable security for the loan.

The interest rate is typically higher for funding not secured by assets than for funding which is not secured by goods being acquired. The secured aspect of the funding is the reason for the higher rate. If a secured loan is in default, the lender can repossess the goods to recoup monies owed. Where no assets are used to secure a loan, this option does not present to the lender. The higher interest rate reflects the higher risk factor.

The suitability of finance products for enterprises will depend on the purposes for the funding and individual objectives of the enterprise. The purpose of the loan – asset acquisition or non-asset acquisition, will be a key determinant of the decision. If an operator is unsure of the choice of finance product, they may choose to seek advice from an accountant or financial advisor.

Purchasing stock which will then be sold as merchandise may be suitable for funding with an unsecured finance product. As stock that will be sold to customers over time, the goods would not typically be considered suitable for a secured products so an unsecured option may be considered. The timeframe over which the merchandise will be sold and funds recouped may form the basis for requesting the loan term.

Loan amount limits are subject to individual lender approvals. Lenders have their own criteria and guidelines for approving loans across their portfolio. This may include minimum and maximum loan amounts for some products. The loan amount requested forms an integral consideration in the loan approval process. Most pertinently with large amounts. Operators may canvass a range of lenders to source those that do approve loan amounts as required.

Equipment may be purchased with unsecured financing, but secured financing is more typically used for the acquisition of assets. Where the equipment being acquired is not accepted as suitable security, an unsecured option may be considered. Where the amount required is below the minimum for secured products such as Chattel Mortgage and Leasing, an unsecured product may be a suitable option.

By definition, unsecured finance does not have security. Security in this sense means the funding is not secured by the goods being funded. With an unsecured product, the collateral required will be determined by individual lenders. Lenders operate with their own criteria in regard to approving all types of funding. An assessment of the operation and with certain set-ups the owner or director also, is undertaken to establish creditworthiness. A personal guarantee from the owner or director and/or other collateral in the form of property or assets may be requested.

All applications for funding are subject to lender approval. The approval of a new business for an unsecured product will be subject to the strength of the application. No Doc and Low Doc options are available for new set-ups and this may include unsecured products through selected lenders. New operations that do not have the full documentation may be required to provide collateral with personal guarantees or property for the funding.

An unsecured funding product may suit a business seeking funding to cover initial set-up expenditures. The approval will be based on individual lender criteria. As the new operation may not have a trading history or the full documentation for the application form, consideration as a no doc applicant may be sourced. A personal guarantee from the owner may be requested. Security by way of property or assets may be requested by lenders.

Whether or not the interest rate on unsecured funding changes over the term will depend on the type of rate secured. The interest rate on unsecured products may be sourced at either a fixed or a variable rate. The decision may be determined by the lender or requested by the borrower. Where a fixed interest rate applies, the rate will not change over the term. Where a variable rate applies, the rate is subject to changes in interest rates in line with lender variations which may be driven by RBA monetary policy decisions.

Where unsecured funding is arranged with a fixed interest rate, the monthly repayments will also be fixed. Both the rate and the repayments will remain unchanged over the full term. Where unsecured funding is arranged with a variable interest rate, the repayments are subject to change. When a lender changes their variable interest rates, the rate may change and this would result in a change to the repayment amount.

The amount required for funding, especially smaller amounts, may be an aspect in deciding which is the most applicable form of funding. Many lenders will have minimum amounts that they deal with in regard to commercial funding. This may apply to overdrafts and to unsecured products. The interest rate on overdrafts is typically higher than for unsecured products and that may contribute to the decision. An overdraft is a very flexible option in regard to repayments. An unsecured option will have a fixed term and monthly repayment amounts. Requesting quotes for both products for consideration may be an option or discussing the decision with an accountant may be advisable.

There are numerous factors which will determine what terms are available for unsecured funding. The terms offered on unsecured funding may vary. Variations can be found with individual lender criteria. The amount of the loan may also determine the term approved. Terms as short as 3 months may be sourced from some lenders and up to 7 years from some, depending on the amount and individual operation.

Yes. Covering cash flow shortages is a purpose for which unsecured funding may be sought. Terms may be requested to meet specific expectations in regard to how long the shortage may be present. A personal guarantee may be requested to be provided by the owner. Collateral through property or other assets may be required.

To apply for unsecured credit, operators will need to provide documentation around the financials of the commercial plus details of the purpose or purchase for the credit. Some banks and credit providers will approve unsecured credit based on the strength of the cash flow of the operation. Providing strong and extensive documentation is important and may include income tax returns, BAS statements, bank statements and verifiable trading figures.

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Our Lenders

Trusted by 60+ lenders Australia-wide

Westpac
Liberty
Automotive Financial Services
Macquarie
Finance One
Commonwealth Bank
Pepper Money
Morris
National Australia Bank
RACV
Get Capital
Prospa
Grow
Selfco Leasing
Scottish Pacific