The Best (Top 3) Unsecured Business Loans Compared

Unsecured business loans are fast becoming the first choice for small business owners when it comes to raising business capital. This is because the terms and conditions which come with conventional (secured) lending options can often be very restrictive on a business and its operators.

Unsecured Business Loans don’t require long-term trading history or security and suit both start-ups looking to get their feet off the ground, or established businesses looking for short term cash flow or capital to grow.

Benefits typically include:

Loans from $5k to $300k

same day settlement

Loan terms 3 to 12-Months

up to 60 for equipment

Fast 24-Hour Loan Approval

approval outcomes are fast

Minimal docs required

no need for full financials

Secure the funding you need to grow your business.

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Secured Versus 
Unsecured Business Loans

Regardless of the amount you wish to borrow, it’s important you understand the difference between a secured and unsecured loan. A sound understanding of the differences will allow you to make an informed decision when borrowing money for your business.

unsecured business loans comparison

Secured Loans

Secured loans (typically provided by a bank or large financial institution) require a guarantee be provided as security that your loan will be repaid. Types of collateral often include; Family home, car or boat which is owned outright, or a percentage of ownership within your business.

If you were to fail in your responsibility to repay your loan, the bank or financial institution is then entitled to take ownership of your collateral in order to recoup the loss incurred.

Unsecured Loans

Quite different to your more traditional secured loan, an unsecured loan requires no capital be placed against the amount borrowed. This can make it far easier to secure funds for your business without having to risk valuable personal assets.

Secured Versus 
Unsecured Loan Comparison Table

Unsecured LoansSecured Loans
Loan Term (Length)Typically 3 – 12 MonthsLoans up to 5-years
RequirementsID check (Licence)
3-Months in business
Regular cash-flow
ID Check (Licence)
12+ Months in business
Full business financials
Collateral such as family home or other asset
Full business credit check
Time to SettlementApproved and settled in 24-hoursTypically takes 2-3 weeks
Finance Amount$5,000 to $300,000No limit

Unsecured Business Loans from $5,000 to $300,000

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The top Three Types of
Unsecured Business Loans

There are so many different unsecured lending options available that you could spend days wading through them all. We have summarised the top three options most businesses opt to use.

Unsecured Business Loans Compared

Unsecured Business Loans

Quite different to your more traditional secured loan, an unsecured loan requires no capital be placed against the amount borrowed. This can make it far easier to secure funds for your business without having to risk valuable personal assets.

Unsecured Line of Credit

A slightly more flexible option allowing the customer to redraw funds up to the total credit facility limit provided. This can be great for business with irregular cashflow.

Unsecured Equipment & Vehicle Finance

With longer terms available than other unsecured lending options this suits a customer who is looking to purchase a specific piece of equipment.

Unsecured Loan
Comparison Table

Loan TypeBenefits & Suitability
Unsecured Business LoanFacility term 3 – 12 months
Any business purpose
Top-up & early payout options
An unsecured business loan is typically repaid over an agreed period (up to 12-months). These types of loans are usually to fund a specific business task, project or for general cash flow. With this type of loan you know exactly what the repayment commitments will be and can budget accordingly.
Unsecured Line of CreditFacility term 12 months (Revolving)
Typically used as a cash-flow facility
Line of credit with no line fees
An unsecured line of credit is perfect for businesses which have irregular cashflow. A line of credit is a flexible form of unsecured finance which only incurs fees on the amount which is drawn upon.
Unsecured Equipment & Vehicle LoansFacility term up to 60-Months (Revolving)
Balloon option
Can be more affordable due to longer terms
Unsecured equipment finance (otherwise known as rent to own) allows a business to rent equipment with the option to purchase at the end of an agreed upon term. This flexibility can allow businesses to secure expensive equipment they require without significant effect on their cash flow.

Need some cashflow? Get started with an unsecured loan now.

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How do I apply
for an Unsecured Business Loan?

One of the benefits of an unsecured business loans is the application process is generally far quicker than a secured loan through a financial institution.

Determine the amount you wish to borrow

only borrow what you need

Prepare any questions you have for the lender

best to come prepared!

Place your initial application online

you only need the basics

Think about what loan term will suit your needs

up to 60 for equipment

Need some capital for a business project?

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Common Questions

  • What do I need to qualify for a loan?

    To quality for an Unsecured Finance Business Loan you will typically need to have the following:

    • A business with 3 or more months trading history.
    • Turnover in excess of $5,000 per month
    • Regular cash flow (daily, weekly or monthly)

  • What do I need to apply?

    With unsecured funding the lender typically only needs to identify who you are and find out some basics about your business such as:

    • The last 3-months of banks statements for your business
    • Some form of identificaiton (Drivers licence)

  • How do I know how much I can borrow?

    Just like a secured loan, the maximum amount you can borrow is determined by the amount of revenue and cashflow coming through your business. However, to determine capacity generally only a copy of your recent bank statement is required. Unlike secured loans which normally require your last years full financial records.

  • How long will it take to apply?

    The online application process is normally quick and easy, and should only take about 10 minutes to complete. If you would prefer to talk to someone in person most lenders are going to be able to take your application over the phone.

  • When will I know if I have been approved?

    The benefit of an unsecured loan is that typically approvals will be provided inside the same business day. This makes unsecured loans a great option for those who require business capital in a hurry.

  • What will the interest rate be?

    Every business is different and therefore the same loan or rate will not suit every business. As such, the interest rates on unsecured business loans change depending on the health of your business and its cashflow. Once you have submitted an application the financier will asses your business and it’s capacity to repay the loan and provide you with a summary of how much you can borrow, the interest rate on your loan, and a break down of any fees or charges.

  • How long is the standard loan term?

    Typically unsecured business loans span between three and twelve months. With most business repaying their loans between six and nine months, however, many also like to keep their payments low and spread out their payments over the full twelve month period.

    For those wishing to pay off their loans early, often a discount is offered.

  • How quickly will I get the money?

    This is one of the key benefits of an unsecured business loan. Generally if you apply during business hours and are approved funds can be transferred before the close of that business day.

I Would Like to Get Started
Where do I Apply?

Unsecured Finance Australia are a leading provider of unsecured lending products. As a team we do everything in our power to make the process of securing an unsecured business loan simple. We want nothing more than to see our clients succeed and are proud to provide small business owners with the funds they need to make their dreams a reality.

Unsecured Business Loans from $5,000 to $300,000

or learn more here