Just getting started or are already in business? Here’s how a business loan can help

Ceyda Erem

11 Sep 2019

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Whether you’re thinking of following your dream to start up your own business or are already running your own, the thought of taking out a business loan to keep the momentum going may have crossed your mind. 

And although the idea of approaching a lender for a loan may seem a little far fetched, it’s actually a lot more common than you’d think. 

According to the 2019 Australian Banking Association Economic Report, 34% of businesses with 200 or more employees sought out business finance in the 2017-18 financial year. 

“While there are several financing options available, short term business loans from alternative lenders have become an increasingly popular option. For businesses that cannot wait for the turnaround times of traditional banks, it’s a great solution to get a quick cash injection without needing to go through the tedious application process,” said Yanir Yakutiel, CEO & Founder of Lumi. 

The report also revealed that 40% of small businesses took out financing to maintain short-term cash flow, 32% used finance to guarantee a businesses’ survival and 22% sought out a loan to replace equipment or machinery. 

“Being concerned about whether you have enough cashflow can really hamper your business opportunity readiness, and sometimes you need to act fast to capitalise. Short term loans can give businesses the flexibility they need to make timely decisions and take advantage of those growth opportunities as they come up,” said Yakutiel. 

So no matter what stage you’re at with your business, we’ve gone ahead and pulled out four hot business loan deals we think could tickle your fancy. 

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Lumi Unsecured Business Loan
  • Borrow between $5,000 to $200,000

  • Approval within 2 hours

  • Zero fees

If you need access to cash today, then you can’t look past the Lumi Unsecured Business Loan. With this unsecured business loan, small business owners will be able to borrow between $5,000 to $200,000 to help give their business the boost it needs. Though interest rates start from 16% and you will have a maximum loan term of 18 months, you’ll pay zero fees over the life of the loan. And best of all, once you’ve submitted an application, if approved, you could have a response within two hours!

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Prospa Business Loan
  • Extra repayments and redraw available

  • Borrow between $5,000 to $300,000

  • Quick applications

Whether you’re upgrading equipment or are taking on a new project, live long and prosper with the Prospa Business Loan. Small business owners will be able to borrow up to $300,000 without having to provide any security or pay any ongoing fees. And to help pay off your loan faster, this loan comes with an extra repayments feature and a redraw facility if you ever need access to those additional repayments. And did we mention that applying only takes 10 minutes? 

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Moula Business Loan
  • No upfront or ongoing fees

  • Approval within 24 hours

  • Borrow between $5,000 to $500,000

Moula aim to make taking out a business loan stress and hassle free with their low cost business loan. The Moula Business Loan features no upfront or ongoing fees and you’ll be able to borrow up to a whopping $500,000 for whatever your business needs. Interest rates start from 0.61% per fortnight and you’ll have the option of making additional repayments to your loan to help get you out of debt faster. And don’t worry if you need the cash in a hurry, as Moula offers approval in as little as 24 hours! 

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OnDeck Short Term Business Loan
  • Zero fees

  • Borrow between $10,000 - $250,000

  • Redraw available (after 50% of the loan is paid)

If you’re in need of some quick cash to keep your business afloat and don’t want to provide any security to do so, then look no further than the OnDeck Short Term Business Loan. This unsecured loan comes with zero fees and a speedy application process, so you’ll be able to have the funds deposited into your account in as little as one business day from approval. And if you ever need your repayments back, you’ll be able to apply for a redraw after 50% of your loan is paid off.

But these are just some of the hot business loan offers we compare, you can check out other options by heading over to our business loan comparison tool.

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