Small Business Loans
At SME Business Finance, our Small Business Loans are designed with your success in mind. With over 40 lenders on our panel, we offer swift access to funds, often within 24 hours. Our team specialises in tailoring loan solutions to match your business needs precisely. Discover the SME Business Finance difference and power your business forward with the right financing.
What is a Small Business Loan?
A Small Business Loan designed to supercharge your business’s financial capabilities. This financing solution is tailored to support small and medium-sized enterprises (SMEs) in meeting their day-to-day operational needs and pursuing growth opportunities. It provides a financial buffer that ensures your business has the necessary funds to cover expenses, manage inventory, meet payroll, and seize unexpected opportunities. These loans are offered by various financial institutions, including banks, credit unions, online lenders, and alternative finance providers, each with their unique terms and eligibility criteria. With this loan, SMEs gain the flexibility to manage their finances effectively and drive business success.
Comparing Secured v Unsecured Business Loans
Comparing Secured and Unsecured Business Loans
When it comes to business financing, two main avenues exist: secured and unsecured business loans.
Secured Business Loans: These loans demand collateral, often in the form of property or occasionally equipment and other tangible assets. The upside? Secured business loans typically offer lower interest rates since the lender has a safety net in the form of collateral. However, it’s important to note that in the event of non-repayment, the lender reserves the right to claim the assets securing the loan as a means of recovering their investment.
Unsecured Business Loans: In contrast, unsecured business loans do not require collateral. Instead, eligibility is determined based on your creditworthiness and business revenue. The trade-off for this flexibility is that unsecured business loans generally come with higher interest rates,a reflecting the increased risk undertaken by the lender. Additionally, the loan amounts may be somewhat restricted compared to their secured counterparts.
How much can you borrow with a small business loan?
The amount you can request for a small business loan depends on factors such as your business size, borrowing capacity, and the type of loan you apply for.
Unsecured Business Loans: When considering an unsecured business loan, you have the flexibility to borrow between $10,000 and $500,000. Eligibility for this range is primarily determined by your financial stability and creditworthiness.
Secured Business Loans: Opting for a secured loan, backed by collateral, opens the door to potentially larger sums. With this option, you may be eligible to borrow up to an impressive $5 million. Collateral provides security for the lender while giving borrowers access to more substantial financial support.
Who is eligible for a small business loan?
The minimum eligibility requirements for small business loans include:
- Australian citizenship or permanent residency
- An active ABN or ACN
- At least six to 12 months of trading history
- Minimum $10,000 monthly revenue
- The ability to provide financials or bank statements
- A good credit score — the minimum credit score for business lending is around 400.
Let's get your Small Business Loan application underway!
2023 – SME Business Finance
Get the funding your business needs quickly and effortlessly with SME Business Finance. Our expert team and extensive panel of over 40 lenders are here to make your financing journey as straightforward as possible. In just 24 hours, you could have the funds you require to propel your business forward. Experience the simplicity of SME Business Finance today.