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Unsecured Business Loans Commercial Financing Australia

26 Feb Today's
best rate
Finance Equipment From
2.79 %
Fixed
*The Interest Rate is calculated on a Secured Loan for business use, effective 27/02/2021 and subject to change. WARNING: The interest rate is true only 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.

Compare Unsecured Loans Interest Rates with other Options

Loan Amount
Loan Term
New Equipment Loan
2.79% Starts At
$569.75
Monthly repayment
Used Older Secured Equipment Loan
4.50% Starts At
$612.5
Monthly repayment
Business Loans - Unsecured
7.99% Starts At
$699.75
Monthly repayment
Business Loans - Secured
2.95% Starts At
$573.75
Monthly repayment
Overdraft - Non Bank
9.95% Starts At
$748.75
Monthly repayment
Chattel Mortgage
2.79% Starts At
$569.75
Monthly repayment
Operating Leases
4.60% Starts At
$615
Monthly repayment
Commercial Hire Purchase
2.79% Starts At
$569.75
Monthly repayment
Rent To Own
9.95% Starts At
$748.75
Monthly repayment
Loan Product Interest Rate
Starts at:
Monthly Repayment
New Equipment Loan 2.79%
$569.75
Used Older Secured Equipment Loan 4.50%
$612.5
Business Loans - Unsecured 7.99%
$699.75
Business Loans - Secured 2.95%
$573.75
Overdraft - Non Bank 9.95%
$748.75
Chattel Mortgage 2.79%
$569.75
Operating Leases 4.60%
$615
Commercial Hire Purchase 2.79%
$569.75
Rent To Own 9.95%
$748.75
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Unsecured loans are suited to a range of purposes but we may have alternatives that also you’re your purposes. This comparison chart displays the interest rates we are currently achieving across our portfolio. You can quickly and easily compare an unsecured loan with other alternatives to assist with planning your next finance move.

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.

Unsecured Business Loans

There are circumstances, situations and purposes for which businesses require finance where security against the loan cannot be provided. For these purposes, broadly defined as ‘intangible purchases’, Unsecured Business Loans are available.

Unsecured Business Loans are often for short term requirements but can cover a range of purposes including but not limited to:-

  • Training courses to upskill staff and better resource the business
  • Buyout of business partner
  • To cover temporary shortfall in cash flow
  • Injection of capital for business growth
  • Funding for marketing and other expenses where a physical asset is not being purchased
  • Stock purchases
  • Where the lender will not accept the asset being purchased as suitable security for the loan.

This is considered somewhat as a specialist loan in that each loan application needs to be considered, addressed and assessed on its individual merits. While there are basic guidelines and a standard format for Unsecured Business Loans, the interest rate and other terms and conditions may be negotiated and set based on the merits of the applicant.

Not all banks and lenders offer unsecured business loans. When seeking this type of loan, a business finance broker with exceptional negotiating skills, extensive knowledge of this type of loan and access to specialist lender that do offer this loan, may be of great benefit in securing a better outcome.

Unsecued Business Loan Features

  • Considered a higher risk loan than a secured loan.
  • Attract a higher interest rate than a comparable secured loan as no security is offered.
  • In some cases, the lender may request a Personal Guarantee be provided by the business owner.
  • Providing the lender with as thorough, detailed and comprehensive information and documentation about the business as possible is recommended to enhance the prospects.
  • Long established businesses with solid trading history and prospects may be viewed as a lower risk than newly established businesses and as such, attract a lower interest rate.
  • The stronger the business credit score the lower the interest rate usually offered.
  • Loan terms from as little as 3 months.
  • Some lenders will require loan reviews at scheduled times throughout the loan term.
  • Interest rate may be fixed or variable.
  • Fixed monthly loan repayments

Individual business lenders will establish their own terms and conditions and application guidelines for Unsecured Business Loans. Just because your bank rejected your request for an unsecured loan does not mean it is not possible to be offered a loan from another lender.

Our business finance company has connections with many lenders including those that do extend Unsecured Business Loans.

Connect with business.finance for lenders that may be able to assist you with an Unsecured Business Loan 

Unsecured Business Loans FAQs

Unsecured Commercial Loans are a versatile loan option as they can be used for a vast range of purposes. To assist you in deciding if an unsecured loan is the most appropriate option for your purpose at this time, we aim to remove a level of uncertainty with these direct responses to specific queries on unsecured loan. As this type of loan requires individually attention and assessment, please contact us for an obligation-free quote.

What purposes can unsecured loans be used for?   

These loans are provided for either intangible purchases which do not meet the criteria for a secured loan such as Chattel Mortgage, CHP or Leasing and for the purchase of assets where the lender does not accept the goods as suitable security. The purposes for this type of loan are vast and include but are not limited to: staff training and development courses; buying a commercial partner out of the organisation; cash flow shortages; capital injection for general growth and expansion; to cover the costs of marketing campaign; the purchase of stock which is not suitable to use as security for a secured loan; and other general commercial purposes.

What are the alternatives to an unsecured loan?   

Depending on the purpose of your need for an unsecured commercial loan, there may be alternatives that you can consider. If your purpose is to cash shortfall as a result of your customers taking too long to pay your invoices, Invoice Lending also known as Debtor Funding may be suitable. If you need a loan to pay a large insurance premium, Insurance Premium Funding is a loan type which is specifically developed for that purpose. If your lending need is for ongoing, short term or general cash flow shortages then an overdraft may suit. Most organisations will approach a bank for an overdraft. When a bank rejects a request for an overdraft there is an alternative available through non-bank lenders the Non-Bank Commercial Overdraft.

Can I payout the loan before the loan term if my circumstances change?   

An unsecured loan can be arranged with a fixed interest rate over a fixed loan term with fixed repayments. Additional payments can be made if desired. If the circumstances of an organisation alter positively over the term of the loan and the owners choose to finalise the loan prior to the end of the loan term that is possible. However, fees for early payout may apply. If looking to pay out a loan prior to the end of the loan term, contact the lender and request a payout figure. This will be the total of all payments including any outstanding repayments and interest and any fees which are required to finalise the loan.

What loan format is an unsecured loan?    

An unsecured loan is typically based on a general loan format. As there is no security offered by way of an asset being acquired, the format differs from asset acquisition credit such as Chattel or Leasing. The lender does not hold security over the goods being purchased or the purpose of the loan. Individual lenders may request alternate forms of security against the loan be provided. Essentially the loan has a loan amount, a fixed loan term, a fixed or variable interest rate and a repayments schedule. The repayments are usually fixed and scheduled for payment on a monthly basis. When all repayments are made, the loan is finalised.

Is insurance required?   

With secured commercial loan products such as Chattel, CHP, Leasing and Rent to Own, the assets being purchased are used as the security against the loan. To protect their interests, lenders require the goods to be insured with the cost of the insurance borne by the borrower. As an unsecured loan is not secured by any goods or assets being purchased, insurance on such goods would not be applicable. If a lender requests some form of guarantee or security by way of other property, then insurance may be required on that security. As an unsecured loan is not secured against an asset being acquired, the interest rate is higher than for secured loans.
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