When it comes to your business, choosing the best small business loan is not that easy. There are a lot of loan options available, how can business owners decide what type of loan will suit their business’ needs?
Choosing a business loan: different types of funding
Choosing the right funding can help you to achieve your goals with short-term results.
At Sure Capital we offer different options, let’s have a look at the most popular loans options in Australia.
Unsecured Business Loan
An unsecured loan gives the opportunity to your business to borrow money without providing collateral. They are the most popular loan option in Australia with fast approval.
- Up to $500k without security
- From 3 to 24-month term
- Used for any business purpose
- Same day funding
- No risk of losing your property
- Shorter loan application process
- Strong relationship building with a lender
The minimum eligibility criteria are:
- have an Australian Business with an active ABN
- operating in Australia
- have an annual turnover of minimum $75,000
- be in business for a minimum of 3 Months
- have a good cash flow
- run a profitable business
- have a good credit score
Secured Business Loan
A secured loan is secured against an asset (residential/commercial property, vehicles, machinery, other equipment). The application process is quick and easy if your business can provide security against the loan.
- Up to $500k
- From 3 to 60-month term
- Used for any business purpose
- Easy to obtain with same day funding
- Low interest rates
- Generous repayment terms
Eligibility criteria change from lender to lender.
Business Line of Credit
A business line of credit allows you to withdraw an agreed amount of funds when it needs to. This small business funding may be necessary to get your business back on track.
- No minimum amount
- Flexible term
- Only pay for what you use
- Set up within 1-2 days
- Product approval lasts for 12 months before reassessment is required
You can use a business line of credit to support current and upcoming cash flow needs:
- Manage fluctuations in cash flow
- Pay staff wages
- Cover unpaid invoices
- Buy urgent stock
- Manage late-paying customers
- Pay suppliers
Equipment or Asset Loan
Equipment or asset loan has a fixed term and is a perfect solution if you need to buy equipment for your business.
- Up to $2 million
- Long term (2/5 years)
- Low interest rate
- Available for equipment, machinery, vehicles, etc.
- A loan is secured against equipment/asset purchased
- New and used items with different costs
Invoice Finance Factoring
The Invoice Finance Factoring is a business loan that is used to fund cash flow by selling your invoices to a third party (a factoring company) at a discounted price for immediate cash. Therefore, you receive immediate funds to continue the business running.
- Up to $2 million
- Short term
- Low interest rate
- Quickly set up (3-5 days application process)
- Bridging the gap between slow payments
- No collateral, credit score and loan history
- Be ahead of ATO obligations
Merchant Cash Advance
A merchant cash advance is a way for a business to borrow a lump sum and pay it back over time using a percentage of future sales. This type of loan is much more flexible than other small business loans.
- Variable amount without security
- No high credit score needed
- Automatic repayments
- Easier to qualify
- More suitable for retail and hospitality businesses
- You do not require to secure the loan against an asset
- No high credit score is required
What to consider when choosing the right loan
In conclusion, when considering business loan options, you must keep in mind these main factors:
- Loan amount
- Interest rates
- Duration of loan repayments
- Processing time
- Penalties
Do you need more information before applying for a business loan?
At Sure Capital we connect our clients with our lenders that can offer the best deal for their needs. Discover which business loan options you qualify for thanks to our experienced consultants.
Totally free process – ask about our pre-approvals with no credit checks.
If you prefer, call us now at 1300 198 154
