Small Business Loans

Small business loans in Australia allow borrowers to access funding from their bank or lender, with the approved amount dictated by the revenue of the business. Banks will offer lower rates, while specialist lenders offer same-day approval. The type of lender most suitable for you will depend entirely on your business.

  • Only need to supply your bank statements
  • Fast access to cash
  • Same-day approval with some lenders
  • Slow approval through banks
  • Need sufficient documentation to prove repayment capacity

A small business loan is a term loan that allows a business to borrow an amount of money based on the amount of revenue generated by the business. The business will then repay the lender over an agreed term. A small business loan can range anywhere from $5,000 up to $500,000, with loan terms between one month and five years.

Small business loans are popular with businesses that cannot traditionally access credit when they need it. Small businesses may include seasonal businesses, or SMEs that require fast access to working capital.

Small business loans can be used to increase capital, purchase essential stock and inventory, and almost any other business-related expense.

You can apply for a small business loan with banks or non-bank lenders. Non-bank lenders will offer the fastest approval, while banks will often offer the most competitive rates.

If you choose to apply with a specialist lender, you can apply online and often be approved the same day. If you choose to apply with your bank, the application and approval process will often be much longer and time-consuming.

Most lenders will be able to provide options if you have been trading for 12 months, have an Australian Business Number (ABN) and are registered for GST.

The minimum you will need to provide a lender with is your ABN and business bank statements. You may also be asked to provide a profit and loss statement, or access to your Australian Tax Office (ATO) Portal.

The amount you can borrow will depend on your risk profile as a borrower. Most lenders allow you to borrow between $5,000 and $500,000 on a small business loan, while the average loan amount for small businesses is around $30,000.

Business loans can be offered for anywhere between one month and five years. Most small business loans are taken for 12 months, and the term for your specific loan will depend on your personal financial circumstances and the suitability of a shorter or longer term.

A small business loan is a type of business loan for business owners who have been trading for at least 6 months and have a minimum monthly business revenue of at least $5,000. Small business loans can be approved and funded on the same day by non-bank lenders, and are generally available for up to five years.

Small Business Loans