Compare $20,000 Business Loans

Need to take your business up a notch? A $20,000 business loan could be just what you need. Let’s explore these loans and how to compare your options effectively.

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$20,000 business loan comparisons on Mozo

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Last updated 20 March 2025Important disclosures

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  • Business+ Unsecured Loan

    Borrow up to $50,000 without using your assets as security. A fixed interest rate means your repayments don’t change over the life of the loan. Apply in minutes with Business+ online or the Business+ app. Get your money fast and efficiently. $20k minimum loan amount.

    Interest Rate
    Upfront Fee
    Funding speed
    Rates range from 11.95% p.a. to 22.95% p.a.
    $495
    Varies
  • Business+ Vehicle Loan

    No upfront deposit and no extra security. Fixed rate for the life of the loan giving you cash flow certainty. Quick quotes and apply online in 20 minutes. Balloon payment available. Can be used for new and second-hand vehicles up to five years old that are bought from a dealership.

    Interest Rate
    Upfront Fee
    Funding speed
    Rates range from 6.29% p.a. to 16.99% p.a.
    $0
    Varies
  • Prospa Plus Business Loan

    Prospa uses risk-based pricing to determine your interest rate. They look at factors including your industry, years in business, cash flow, creditworthiness and the overall financial health of your business.

    Interest Rate
    Upfront Fee
    Funding speed
    Interest rates vary based on risk.
    3.5%
    from 24 hours
    Details
  • Unsecured Business Loan

    Business Loans from $5,000 to $5,000,000 with high approval rates. Access to funds on loans up to $500,000 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
    Details
  • Boost Business Loan

    Whether you’re looking for a quick cash boost for your business or are ready to invest in growth, ScotPac offers a range of unsecured and secured loans from $10,000 up to $500,000. For loan terms of 6 months to 3 years. No application or account keeping fees to pay. Funds available in 24 hours or less once approved. Repayment options available.

    Interest Rate
    Upfront Fee
    Funding speed
    On application
    Details on application
    From 24 hours
    Details
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Business Banking Resources

Reviews, news, tips and guides to help find the best business loan for you.

What can I use a $20,000 business loan for?

As you can imagine, a $20k business loan can fund a lot of things. For a small business, it might be enough to help you launch a whole new product line. For a larger business, it can simply shore up an extra bit of cash flow. Here are a few ways you could put $20k to work for your business:

  • Test out a new product line

  • Improve cash flow

  • Boost your marketing efforts

  • Upgrade key equipment

  • Train your staff

  • Make modest renovations.

While it certainly won’t go as far as a $100,000 business loan, it clearly provides a range of options.

What types of $20k business loans are available? 

$20,000 is a moderately sized loan, which opens up a variety of financing options. Here are a few types of loans available at this size:

  • Term loans. Available in short, medium, and long terms, these lump-sum loans can be paid off over the course of a few months to several years.

  • Equipment finance business loans. These are specifically designed to help you purchase equipment (such as a vehicle or industrial machinery), with the equipment often serving as collateral.

  • Revolving credit. Lets you borrow as needed up to the $20k, for things like cash flow or unexpected expenses.

  • Business credit card. Just like a personal credit card, but for your business.

  • Invoice financing or merchant cash advance. These options give you the money upfront, with your unpaid invoices or future sales serving as the basis for repayment.

Here are some pros and cons of each:

Financing Option

Pros

Cons

Term Loans

  • Predictable monthly payments

  • Good for bigger, one-time needs

  • You’ll need decent credit

  • Might have to put up collateral or give a personal guarantee

Equipment Finance Business Loans

  • Get the equipment you need without paying all at once

  • The equipment itself often backs the loan

  • Only works for buying equipment

  • The equipment could lose value faster than you pay off the loan

Revolving Credit

  • Borrow what you need, when you need it

  • Great for keeping cash flow steady or handling surprises

  • Interest can be higher than with term loans

  • Easy to borrow too much if you're not careful

Business Credit Card

  • Handy for everyday business expenses

  • Might come with rewards or cash back

  • High-interest rates if you carry a balance

  • Debt can pile up if you don’t pay it off each month

Invoice Financing or Merchant Cash Advance

  • Quick cash based on your unpaid invoices or future sales

  • Easier to get, even with less-than-perfect credit

  • Costs more in fees and interest

  • Reduces your future cash flow from sales or collections

How do I get a $20,000 business loan?

The application process can vary based on the lender and the type of loan, but here’s generally how it works:

  1. Decide what kind of loan you need. First, identify the type of loan you need.  This usually aligns with your business objective. For example, if you need new equipment, equipment financing is a logical choice.

  2. Research and compare. Next you’ll compare your options, factoring in things like interest rates, repayment terms, fees and eligibility criteria.

  3. Apply online. Once you've chosen a lender, you can usually apply online. You’ll need to provide details about your business, financial documents and the purpose of the loan.

  4. Equipment evaluation (if applicable). With equipment financing, the lender may want to assess its value and condition before approving the loan.

  5. Review and approval. The approval process can take anywhere from 24 hours to several weeks, depending on the complexity. Don’t be alarmed if the lender reaches back out for more information in the meantime.

  6. Funding. Once approved, the funds will usually land in your account within a few business days. For equipment financing, the loan is usually paid directly to the vendor or supplier.

How do I know if I’m eligible for a business loan?

While specific criteria may vary between lenders, some common requirements include:

  • Be a fully registered business with an active Australian Business Number (ABN) or Australian Company Number (ACN) 

  • Have a minimum turnover, which can be anywhere from $40,000 - $60,000 annually

  • Be in businesses for a minimum of between 6 months to 2 years 

  • Have a solid credit history and no unpaid tax bills. 

Frequently Asked Questions

What is the interest rate on a $20,000 loan?

The interest rate on a $20,000 loan varies on quite a few factors including the purpose of the loan, the length of the loan, your credit history, whether you have any collateral, whether it’s fixed or variable interest… as you can see, it really depends on the circumstances. 

But to give you some idea, as of August 2024, interest rates for business loans in the Mozo databse range from just over 6% to upwards of 24% per year, reflecting the current high-interest rate environment. 

Does a $20,000 loan come with any fees?

Some common fees you might find with a business loan include:

  • Application fees. A non-refundable, one time charge is at the beginning of your loan whether or not you’re approved. It may be a fixed dollar amount or a percentage of the total loan amount.

  • Service fees. These are ongoing monthly or yearly admin fees that pay for the maintenance of your loan.

  • Late payment fees. If you miss a repayment, you could be hit with a late payment fee.

  • Exit fees. If you pay off your loan early, especially with fixed-rate loans, your lender might charge an exit fee.

Not every loan will include all of these fees, and some lenders may waive certain fees as part of special offers they might be running. Your best bet is to get familiar with the fee structure of any loan you’re considering, and don’t forget to keep an eye out for special deals.

What are the repayment options for a $20k loan?

Repayment options depend on the type of loan you choose. Typically, lenders offer monthly, fortnightly, or weekly repayments. Some loans, like merchant cash advances, might even have daily repayment options. Choose the schedule that best fits your business’s cash flow, within the options you're given.

How can I get a $20,000 business loan with bad credit?

If your business has bad credit, a bad credit business loan might seem like an option. However, it's important to note that Mozo doesn't compare these loans due to their often exorbitant interest rates.

In this case, it might be more beneficial to tap into any savings you have or work on improving your credit score before applying.