No home, no loan: Not owning property hurts young business owners

By Niko Iliakis · · 2 min read
Fact Checked
Advertiser disclosure

The banking Royal Commission and resulting credit squeeze has made property even harder to come by for young Australians. And according to a new report from MYOB Business Monitor, this has worsened the situation for young business owners trying to secure business financing.

The report found that nearly half of Gen Y small business owners had applied for financing last year - much more than their Gen X and Boomer counterparts - and more than a third had their applications declined.

Lack of collateral coming back to bite Gen Y businesses

This is a common problem among younger small business owners. Many apply for a loan in a bid to boost profits and productivity, only to be turned down because they don’t have the necessary assets to put up as security.

But if home ownership among younger generations of Australians is in decline, and property is often a requisite for obtaining business financing, what does this mean for the small business community?

According to MYOB CEO, Tim Reed, it should sound warning bells.

“This isn’t something you can pin on smashed avo. Australia’s youngest small business owners struggle to get access to finance because they’re less likely to own their own home,” he said.

“Many of us have believed tying business loans to home ownership has been a problem with the lending system that has existed for years, but for the first time we’re now seeing the generational impact.”

A new breed of lenders offers a solution

The right business loan can open the door to extra staff, renovations, and investment in new equipment, not to mention make sure your business has enough capital during periods of low cash flow.

“If cash flow causes problems, the wheels can fall off very quickly in other areas, so making sure businesses can get paid on time should continue to be an absolute priority for all,” said Mr Reed.

Nowadays, many Australians are turning to online business lenders to get the funding they need. This new breed of lenders often let business owners borrow without having to put up large assets like property as collateral.

Streamlined application processes also mean business owners can receive funds within 24 hours, allowing them to take advantage of opportunities to grow their business sooner rather than later.

For a look at the kinds of loans offered by online lenders, be sure to head to our unsecured business loans comparison page, or check out some of the options below.

Unsecured business loans - rates updated daily

Search promoted business loans below or do a full Mozo database search . Advertiser disclosure.

Refine the list of business loans

Let’s help find you a great business loan...
  • placeholder
    About Zip Business Capital
    Line of Credit

    Unsecured business funding up to $500K. Start the online application process in just 5 minutes, and get access to funds within 24 hours once approved. Great for ABN registered businesses with an annual turnover of $200K+.

    Interest Rate
    Upfront Fee
    Funding Speed
    On Application
    2% to 3%
    Instantly, once approved
    Go to site
    Details
  • placeholder
    About OnDeck
    Short Term Business Loan

    Unsecured business loans from $10,000 - $250,000, over 6 to 24 months. Online application takes only 10 minutes and you'll know if you're approved within hours. Apply now.

    Interest Rate
    Upfront Fee
    Funding Speed
    On Application
    3.00%
    from 24 Hours
    Go to site
    Details
  • placeholder
    About Lumi
    Unsecured Business Loan

    A straightforward business loan with no hidden Lumi fees or charges. Speedy application and approval process with fast access to funds according to Lumi.

    Interest Rate
    Upfront Fee
    Funding Speed
    from 9%
    $0.00
    Within same day
    Go to site
    Details
  • placeholder
    About Bizcap
    Unsecured Business Loan

    Business Loans from $5,000 to $600,000 with high approval rates. Access to funds in as little as 3 hours. Cash flow friendly repayments and open minded offers.

    Interest Rate
    Upfront Fee
    Funding Speed
    On Application
    3%, starting at $399
    from 3 hours
    Go to site
    Details
  • placeholder
    About Waddle
    Invoice Finance

    Waddle Invoice Finance connects with your accounting software to make managing cash flow easy. Get funds from your unpaid invoices with Waddle, a cash flow platform combining innovative tech with competitive rates and flexible terms.

    Interest Rate
    Upfront Fee
    Funding Speed
    Starting from 6%
    $0.00
    Same day
    Go to site
    Details
  • placeholder
    About Business Fuel
    Business Loan

    Fast, flexible business loans from $10,000 to $250,000. Great for businesses which have been trading for more than 6 months with a monthly turnover above $10,000.

    Interest Rate
    Upfront Fee
    Funding Speed
    On Application
    $0.00
    48 Hours
    Go to site
    Details
  • placeholder
    About Octet
    Invoice Finance

    Increase cashflow by unlocking the power of your receivables with Octet’s Invoice Finance solution. Receive up to 85% of your debtor’s ledger with tailored facilities ranging from $100K to $10M.

    Interest Rate
    Upfront Fee
    Funding Speed
    0% for the first 60 days, then rates starting from 6%
    On Application
    Instant on approval
    Go to site
    Details

Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.

While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.