Compare $20,000 Business Loans

If you need a loan to boost your small business, loo no further. From big banks to online lenders, Mozo compares a range of $20,000 business loans to help find the right one for you.

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Who offers $20,000 business loans?

Business loans are offered by banks, credit unions and even online lenders, most of which you can compare right here! By using our free comparison tool, you’ll be able to compare things like interest rates, fees and other loan features. 

How do I apply for a $20,000 business loan with Mozo? 

Once you’ve found the right loan for your circumstance by using Mozo’s business loan comparison tool, click the ‘go to site’ button. You’ll then be redirected to the provider’s site where you can fill out an application

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Page last updated November 29, 2020

$20,000 business loan comparisons on Mozo - rates updated dailyMozo has robust processes to ensure our site is updated to reflect the latest information from providers. There may be the odd occasion where updates are delayed, so please confirm information before purchasing.

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

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  • Business Loan

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  • Invoice Finance

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  • Business Loan

    Interest rates vary based on risk. Rates range from 14.95% to 24.95% p.a.

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  • Invoice Finance

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  • Business Loan

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  • Invoice Finance

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  • Fully Drawn Loan

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Business Banking Resources

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

How to find the right $20,000 business loan for me

If you’re thinking of picking up some new equipment or need a quick cash injection to get a new project underway, a $20,000 business loan could be your best bet. But if you’ve never had to shop around on a loan before, you might be wondering how to know when you’re onto a winner. That’s where we come in. We’ve answered some of the most commonly asked questions when it comes to taking out a business loan.

What could I use a business loan for?

If your business is a little short on cash and is looking to grow or cover an expense, then a $20,000 business loan could save the day. And while what you use the money for is entirely up to you, some of the most common uses for this kind of financing are: 

  • Buying new equipment 
  • Paying wages
  • Paying invoices 

What kind of business loan can I get?

Here are the four types of business loans you may come across once you start shopping around: 

Secured and unsecured business loans 

Business loans are either listed as secured or unsecured - it’s important to understand the difference between the two, so you can help make a decision about which option would better suit your business. Secured business loans often come with lower rates, however, in order to get that low rate, you must provide an asset to be used as security, like your car. So in the event that you are unable to make your repayments, the lender has the right to reclaim you asset and sell it on your behalf. 

On the other hand, unsecured business loans don’t ask you to offer up an asset as collateral. Unsecured business loans are also the more common type of loan you’ll see advertised, but these types of financing often mean higher interest rates. 

Short term business loans

A short term business loan is often used by business owners in need of fast funding to pay for an unexpected bill or expense. They can be used for invoice financing, which may often appear as a line of credit. 

Equipment finance business loans 

This is a type of business loan that can be used specifically to purchase equipment. You might consider an equipment finance business loan if your equipment needs an upgrade or you’re looking to expand. 

More frequently asked questions

How do I find the right loan for my business? 

If it’s your first time shopping around for a $20,000 business loan, there are a few things you’ll want to compare. Not only can the right deal help you save a bundle, but it can give you the flexibility you need when paying off your loan.

The interest rate

These two features are possibly the most important features of any type of loan. Most of us recognise interest rates as an annual charge. Business loan interest rates are a little different and can be charged on a weekly or fortnightly basis. And if there is no advertised interest rate on a specific loan, it could be because the lender will offer you a customised rate if your application is successful. 

Fees

Fees are another factor to keep your eye on, as they may come in many types. Upfront or ongoing fees are the more common fees you could come across, but others include valuation, exit or late payment fees. Keep in mind that these can add up over time and may see you fork out more than you initially bargained for, so be sure to pick a loan with minimal or zero fees.

Repayment flexibility 

Once you start comparing $20,000 business loans, you’ll soon find that many lenders offer different repayment schedules, like weekly, fortnightly or monthly. But in some cases, a lender may ask you to make daily repayments. So it’s important to carefully consider the type of repayments you’ll be able to afford making. 

Repayment features

Last but not least are repayment features that can help you pay off your loan faster, such as extra repayments or a redraw option. Having the ability to make extra repayments to your loan can help you cut down on interest and get you out of debt quicker. And if you ever need to redraw the money for a sudden bill, a redraw facility will allow you to do so. 

Can I take out a $20,000 business loan with bad credit?

If you’ve got a poor credit history, taking out a business loan for any amount can be tricky. Many lenders take into account both your personal and businesses credit history when determining your eligibility.  So if either one or both look like bad news to the lender, your application may be denied. 

If you do have a poor credit history, then you might want to consider exploring other options first, like using funds in your business savings account. It could also be worth repairing yours or your businesses credit history first before applying. 

What do you need to apply for a $20,000 business loan?

Think you’ve found the right business loan for you? Great! Now the next step is to apply. Although the necessary documentation you may be asked to provide will depend on the lender, there’s a good chance you’ll be asked to provide: 

  • Your drivers license 
  • Your Australian Business Number (ABN) or Australian Company Number (ACN)
  • Financial information, like your bank account and tax records 

Business banking guides

Business banking news

Farmers flock to apply for business loans as 82% of NSW declared drought free

After years of misery, the drought spell may finally be breaking for New South Wales, with 82% of the state now declared drought free.But farmers aren’t just rejoicing with a celebratory dance in the rain. New research shows they’re also using this good fortune to fast track their business’ growth. For one, there’s been a surge in agribusinesses buying new farming equipment to prepare for this year’s crop season. The value of business loans lent out for agricultural machinery is up by over 100% in NSW since this time last year, according to figures released by the Commonwealth Bank today. “We’re seen asset finance for ag machinery, particularly tractors and harvesters, increase significantly,” Commbank’s executive general manager of regional and agribusiness, Grant Cairns said. “Across the country, new asset financing for tractors is up 119% - the highest volumes we’ve seen in the past three years, and financing for harvesters is up 108%.”Cairns said those huge percentage jumps aren’t surprising, given how many incentives farming businesses have right now to invest. “Nationally, farm values are up, commodity prices are holding firm, interest rates are at record lows, seasonal conditions have been good, there is strong consumer and retail demand for fresh produce and there’s Government incentives like the instant asset write off scheme,” he said. For context, the instant asset write-off (now extended till 30 June 2021) allows businesses earning up to $500 million per year to claim immediate tax deductions on multiple asset purchases - capped at $150,000 each. This means the write-off would be able to cover ‘big ticket’ items like tractors and harvesters, giving farmers the opportunity to shave off a chunk of their 2020/21 tax bill.RELATED: Small business loan approval sits at 70%: how to apply for yoursThinking of making an investment for your own business? If you need a hand funding your next piece of machinery, get started with one of the equipment finance options below.

Get your invoices sorted before Christmas: How a business loan can help

As 2020 comes to a close, the time is ripe for businesses to tie up loose ends, including any unpaid invoices, and to get cashflow ready for the holiday season.There might also be a resurgence in sales to prepare for, as research from Westpac and the Melbourne Institute shows consumer sentiment soared to a seven-year high this month. With this in mind, you may want to have extra funds ready in your back pocket just in case you need to buy more stock or hire more employees. “In these turbulent economic conditions, the ability to anticipate demand can be difficult - even at Xmas, which is traditionally a busier season for retail and other upstream industries,” business lender Octet’s head of marketing, Duncan Khoury says. “Invoice finance (otherwise known as debtor finance) can be useful by giving you quick, painless access to the funds tied up in your unpaid invoices, which are often business’ biggest untapped asset.”So if your slow-paying customers still haven’t responded to your nudge on their shoulders, invoice finance could be a great alternative solution. This type of business loan is secured against your outstanding business invoices, granting you up to 85% of your invoice amount upfront (you receive the rest, minus any fees or charges, once your customer pays). That way, you won’t be left high and dry if, say, you’re a wholesaler and new orders suddenly come in from a whole bunch of retailers. Approval speeds are also quick with online lenders like Octet, helping you stay ahead of the end-of-year rush. You may only need to wait 24-48 hours before you can start withdrawing funds from your invoice finance facility.Ready to compare your invoice finance options? We’ve made it super easy for you by rounding up a few eye-catching deals offering fast and flexible funding to Australian businesses.