Compare Unsecured Loans Interest Rates with other Loans
Interest rate comparison chart allows you to quickly and easily compare rates on unsecured loans against those of other lending products. Enter your loan amount and preferred term and see the repayments for each loan. Great for comparing loans and planning your loan.
Unsecured Business Loan Interest Rates
Unsecured Business Loans are provided for purposes where security in the way of a physical asset or goods, ie a car or equipment, is not available. This type of loan may be utilised for a range of uses including short-term cash flow shortages, capital injection, training and marketing programs and many others.
As no security is offered against the loan, it is considered a higher risk loan than a secured loan. Higher risk loans attract a higher interest rate but each loan is considered on its individual merits.
The interest rate on an unsecured business loan may be at a fixed or a variable rate depending on the individual lender.
While there may be fairly similar interest rates advertised by the lending sector for various loan categories, each lender derives their own interest rate schedule based on a number of factors which include:-
- The individual lender’s capability and cost of acquiring funds.
- If the lender is active in a particular loan category.
- Risk assessment of a particular loan category.
- Global availability of lending funds and the effects of international monetary markets.
In offering an interest rate on a specific loan to a specific business, lenders will assess individual applications based on a range of factors:-
- Risk assessment of the individual business. Long-established businesses with good trading history will usually be assessed as a lower risk than more newly established
- Credit score. The credit score of the business and with very small businesses possibly also the business owner’s score, will be taken into the account.
- As a general guideline - the better the credit score, the better the interest rate offered.
- The purpose of the loan.
- The loan term. Unsecured loans can be offered for as little as 3 months to cover short-term requirements.
Securing a Low Business Interest Rate
To improve their prospects of securing a lower interest rate on a high-risk unsecured loan, businesses may take a number of measures which include:-
- Preparing thorough and comprehensive documentation which verifies their good trading history and future prospects.
- Present documentation which clearly demonstrates how the commercial enterprise will repay the loan.
- Attend to any issues which may improve the credit score. Bad debts and some other entries may be removed after a certain period but this usually entails applying to have these entries removed.
- The owner providing a personal guarantee.
- Engaging the services of a broker to negotiate with the lender to secure a better interest rate.
We have connections with both lenders that offer Unsecured Business Finance and brokers that work to achieve lower interest rate loans.
Connect with us for lenders and brokers that may be able to assist you with achieving a better interest rate for your Unsecured Loan