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

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
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 Application2% to 3%Instantly, once approvedLine 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+.
- Loan type
- Line of Credit
- Security type
- Unsecured
- Minimum loan amount
- $10,000
- Maximum loan amount
- $500,000
- Minimum loan term
- 6 months
- Maximum loan term
- 5 years
- Minimum trading
- 18 months
- Minimum annual turnover
- $200,000
- Application speed
- 10 minutes
- Approval speed
- 24-48 hours
- Funding speed
- Instantly, once approved
- Upfront fee
- 2% to 3%
- Ongoing fee
- $0.00
- Late payment fee
- -
- Transaction fee
- -
- Early repayment penalty
- 0
- Other fees
- Various late payment fees may apply.
- Early repayments allowed
- Yes
- Repayment frequency
- Weekly, Fortnightly, Monthly
- Repayment types
- Principal & Interest
- Redraw allowed
- Yes
- Other benefits
- -
- Other restrictions
- -
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 Application3.00%from 24 HoursShort 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.
- Loan type
- Loan
- Security type
- Unsecured
- Minimum loan amount
- $10,000
- Maximum loan amount
- $250,000
- Minimum loan term
- 6 months
- Maximum loan term
- 2 years
- Minimum trading
- 1 year
- Minimum annual turnover
- $100,000
- Application speed
- 10 Minutes
- Approval speed
- from 24 Hours
- Funding speed
- from 24 Hours
- Upfront fee
- 3.00%
- Ongoing fee
- $0.00
- Late payment fee
- $0.00
- Transaction fee
- $0.00
- Early repayment penalty
- $0.00
- Other fees
- -
- Early repayments allowed
- No
- Repayment frequency
- Daily, Weekly
- Repayment types
- Principal & Interest
- Redraw allowed
- Eligible to apply for renewal after 50% paid down
- Other benefits
- -
- Other restrictions
- Minimum $100k turnover and 1 Year in Business.
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%$0.00Within same dayUnsecured 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.
- Loan type
- Loan
- Security type
- Unsecured
- Minimum loan amount
- $5,000
- Maximum loan amount
- $300,000
- Minimum loan term
- 3 months
- Maximum loan term
- 3 years
- Minimum trading
- 6 months
- Minimum annual turnover
- $50,000
- Application speed
- 10 minutes
- Approval speed
- 2 hours
- Funding speed
- Within same day
- Upfront fee
- $0.00
- Ongoing fee
- $0.00
- Late payment fee
- -
- Transaction fee
- $0.00
- Early repayment penalty
- $0.00
- Other fees
- $0.00
- Early repayments allowed
- yes
- Repayment frequency
- Weekly
- Repayment types
- Principal & Interest
- Redraw allowed
- yes
- Other benefits
- -
- Other restrictions
- Loans above $300,000 must be secured by property.
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 Application3%, starting at $399from 3 hoursUnsecured 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.
- Loan type
- Loan
- Security type
- Unsecured
- Minimum loan amount
- $5,000
- Maximum loan amount
- $600,000
- Minimum loan term
- 3 months
- Maximum loan term
- 1 year
- Minimum trading
- 6 months
- Minimum annual turnover
- $120,000
- Application speed
- 10 Minutes
- Approval speed
- within 1 hour
- Funding speed
- from 3 hours
- Upfront fee
- 3%, starting at $399
- Ongoing fee
- no
- Late payment fee
- $50.00
- Transaction fee
- -
- Early repayment penalty
- no
- Other fees
- -
- Early repayments allowed
- yes
- Repayment frequency
- Weekly, flexible
- Repayment types
- Principal & Interest
- Redraw allowed
- no
- Other benefits
- Daily repayments available.
- Other restrictions
- -
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%$0.00Same dayInvoice 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.
- Loan type
- Line of Credit
- Security type
- Secured
- Minimum loan amount
- $10,000
- Maximum loan amount
- $4,000,000
- Minimum loan term
- -
- Maximum loan term
- -
- Minimum trading
- 6 months
- Minimum annual turnover
- $10,000
- Application speed
- Varies
- Approval speed
- 48 Hours
- Funding speed
- Same day
- Upfront fee
- $0.00
- Ongoing fee
- $0.00
- Late payment fee
- $0.00
- Transaction fee
- 0.50% - 1.50% drawdown fee on each transaction
- Early repayment penalty
- $0.00
- Other fees
- -
- Early repayments allowed
- n/a
- Repayment frequency
- flexible
- Repayment types
- Principal & Interest
- Redraw allowed
- n/a
- Other benefits
- Waddle connects with leading accounting platforms including Xero, MYOB and Quickbooks.
- Other restrictions
- Requires at least $10,000 in invoices to other Australian businesses.
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$0.0048 HoursBusiness 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.
- Loan type
- Loan
- Security type
- Secured or Unsecured
- Minimum loan amount
- $10,000
- Maximum loan amount
- $250,000
- Minimum loan term
- 6 months
- Maximum loan term
- 2 years
- Minimum trading
- 6 months
- Minimum annual turnover
- $120,000
- Application speed
- 5 Minutes
- Approval speed
- 24 Hours
- Funding speed
- 48 Hours
- Upfront fee
- $0.00
- Ongoing fee
- $0.00
- Late payment fee
- $25.00
- Transaction fee
- $0.00
- Early repayment penalty
- $0.00
- Other fees
- -
- Early repayments allowed
- yes
- Repayment frequency
- Weekly
- Repayment types
- Principal & Interest
- Redraw allowed
- yes
- Other benefits
- Single Fixed Fee
- Other restrictions
- -
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 ApplicationInstant on approvalInvoice 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.
- Loan type
- Line of Credit
- Security type
- Secured
- Minimum loan amount
- $100,000
- Maximum loan amount
- $10,000,000
- Minimum loan term
- 1 months
- Maximum loan term
- -
- Minimum trading
- 1 year
- Minimum annual turnover
- $1,000,000
- Application speed
- 2 Minutes
- Approval speed
- 24 Hours
- Funding speed
- Instant on approval
- Upfront fee
- On Application
- Ongoing fee
- Ongoing service fees apply. Amount is calculated as a percentage of invoices processed.
- Late payment fee
- $0.00
- Transaction fee
- $0.00
- Early repayment penalty
- -
- Other fees
- -
- Early repayments allowed
- -
- Repayment frequency
- -
- Repayment types
- n/a
- Redraw allowed
- -
- Other benefits
- Complimentary Trade Finance facility available subject to approval. Access to the Octet Supply Chain Platform.
- Other restrictions
- Up to 85% value of unpaid invoices available.
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.