A general business loan is more flexible than asset finance — it isn't tied to a single purchase, so it suits working capital needs: buying stock, funding growth, covering a tax bill, or simply smoothing cash flow through a quiet stretch. Unlike a chattel mortgage, there's no specific asset securing the loan by default, so lenders weigh your business's trading history, cash flow and credit profile more heavily than they would for, say, a truck loan.
Because there's no asset to leave a residual value against, business loans typically don't carry a balloon payment — you repay the full amount, plus interest, in regular instalments over the term. Repayments are usually weekly, fortnightly or monthly, and can often be timed to suit how your business's income actually lands.
A business loan can be secured against a business asset (which generally brings the rate down) or unsecured, relying purely on the business's cash flow and credit history (generally faster to arrange, priced higher for the extra risk). Which is right for you depends on what you have available as security, how quickly you need funds, and how the repayment fits your cash flow. The indicative rate in the calculator above is a starting point — your actual rate depends on which structure you and your broker land on and how a lender assesses your application.
SME lending has broadened well beyond the traditional bank overdraft or term loan — a working panel of lenders now covers everything from short-term working capital to multi-year secured facilities, each suited to different situations. A broker who compares across that panel, rather than a single lender's own product range, is often the difference between a facility that technically works and one that actually fits how your business's cash flow moves through the year.
General business or working capital finance can fund almost anything the business needs that isn't a single specific asset purchase — stock, staged growth, a tax bill, renovations, marketing, or simply smoothing cash flow through a quiet period. If you're buying a specific truck, machine or vehicle, our asset finance calculators will usually give you a more accurate, and often cheaper, estimate.
It can be either. A secured business loan uses a business asset as security and generally carries a lower rate; an unsecured loan relies on the business's cash flow and credit history and is usually faster to arrange but priced higher to reflect the extra risk. Which one suits you depends on what you have available as security and how quickly you need funds.
Asset finance (a chattel mortgage) is tied to a specific asset — the lender's security is the truck, machine or vehicle itself, and the loan amount matches its price. A business loan is more flexible: it's not tied to one purchase, doesn't automatically have a balloon, and can be used for working capital rather than a single asset.
There's no fixed minimum — many business loans are approved for the full amount requested, based on the lender's assessment of the business's trading history and serviceability. Putting some funds in upfront lowers the amount financed and therefore the repayment.
Generally yes, where the loan is used for a business purpose — the interest is typically a deductible expense. Confirm your specific position with your accountant, particularly if the funds are used for a mix of business and personal purposes.
Unsecured working capital facilities can sometimes be approved within a day or two for an established business with clean financials. Secured or larger facilities take longer while we compare terms across the panel.