Australia's best business loans of 2017 (and how to get them)
There's a new breed of non-bank lenders revolutionising the business lending market in Australia and giving business owners more financing options and flexibility than ever before.
Gone are the days of slow moving bank approval processes, unreasonable loan terms and uncompetitive rates. Aussie businesses can now get funding in as little as 24 hours at highly competitive interest rates of less than 5%.
With so many competitive new business lenders on the scene, the comparison experts at Mozo have put together this guide to some of the top non-bank business loan options on the market right now.
Moula - Business Loan
- Loans up to $250,000 approved within 24 hours
- Interest rates starting at just 1.00% per fortnight
- No establishment or direct debit fee, and no penalty for early repayment
- Extra repayments and redraw allowed
Our verdict
Moula uses a unique platform that lets it analyse your business data in order to approve your loan. Once you enter a few details and link your Xero account up, you can take out a loan for between $5,000 and $250,000 for a term of 6-12 months. There’s no time-consuming paperwork and no upfront, ongoing or early break fees. To be eligible, you’ll need to have been in business for at least 12 months, have a fair or better credit history and make at least $5,000 in monthly sales.
Prospa - Prospa Plus Business Loan
- Fast same day approval and funding
- Borrow $5,000 to $250,000 for terms of 3 to 12 months
- Apply online in 10 minutes
- No security required
Our verdict
Prospa is Australia’s leading online lender to small business, offering fast and flexible loans for any business purpose. This innovative Australian-owned lender focuses on removing the obstacles that have made it difficult for SMEs to access funding. A director’s guarantee is all that’s required as security, so there’s no need to put your house on the line. What’s more, Prospa assesses creditworthiness based on the health of the business, not the owner’s personal credit score.
Zip Business Capital - Line of Credit
- Loans up to $250,000 for 12 months
- Personalised rates from 0.5% per month
- No early repayment, direct debit or account keeping fees (2-3% upfront fee applies)
- Extra repayments and redraw facility included
Our verdict
If you don’t have any big assets to put up as security against a loan, the Spotcap Line of Credit is worth checking out, since Spotcap offers Australia's only completely unsecured business lines of credit and small business loans. If your key financial documents are organised, you can apply for this line of credit in 5 minutes, and specialised credit assessment technology will analyse your business. Once approved, you can have the funds in your account in as little as 24 hours.
Shift - Business Loan
- Fast and flexible line of credit from $5,000 to $300,000
- Interest rates from just 0.75% p.a., based on business profile
- No application or line fees, plus you can earn Qantas points
- Funds can be available within 24 hours
Our verdict
This innovative lender aims to revolutionise business finance with a revolving line of credit facility for trade purchases. Once approved you can call on funds up to your approved limit whenever you require. Interest rates are based on your business profile and you’ll only pay for what you use. Get Capital has less onerous criteria than the banks and a simple online application process. You’ll need an ABN plus a minimum of nine months’ business history and $10,000 monthly sales.
businessloans.com.au - Flexible Business Loan
- Flexible business loans of $5,000 to $500,000
- Low interest costs starting from 1.1% per month
- Apply online in minutes and get approval in as little as 24 hours
- Convenient redraw option
Our verdict
This efficient online lender offers fast business loans for any purpose, including staff, bills or upgrades. Businessloans.com.au offers flat pricing for qualified customers, no hidden fees, the ability to draw down on funds throughout the year and a handy redraw facility. The 100% online approval process is as simple as filling out some basic details and linking your business data. To qualify you’ll need to demonstrate 2 years business trading history and $20,000 per month in sales.
Want to compare more business loans?
View 45 business loans from leading bank and non bank lenders at Mozo's business loans comparison hub.
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