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.
There's no single limit. A business loan mostly comes down to whether your business can comfortably meet the repayments. Lenders typically look at:
Worked example (example only, not a quote): Using the calculator's starting figures — $80,000 over three years with no balloon — you repay the full $80,000 plus interest in regular instalments, and nothing is owing at the end. Use the calculator above for your figures.
Five steps, from first enquiry to funds in your account.
Budget Finance is a credit representative (Credit Representative 565565) of Connective Credit Services Pty Ltd, Australian Credit Licence 389328. All applications are subject to the lender's assessment and approval.
Yes, but options are narrower than for an established business, and most lenders want to see some trading history first. Without it, lenders lean more on security, your industry experience and your personal credit history. If you need money for a specific truck, machine or vehicle, asset finance is often the more realistic option for a new business, because the asset itself secures the loan.
Most lenders want an active ABN, photo ID for the owners, and recent business bank statements. Larger loans usually also need financial statements, tax returns or BAS, and details of any security. Lenders check credit history and how long you've traded. If your BAS or tax lodgements are behind, get them up to date first — it's one of the most common things that slows an application down.
Work out how much you need and what it's for, then talk to a broker who can compare lenders for you. Your broker asks about your business, collects your ID, ABN details and bank statements, and sends the application to a suitable lender from the panel. Once approved, you sign the documents and the funds go into your business account. Check the repayment fits your cash flow with the calculator above first.
Expect a credit check — lenders look at credit history before approving a business loan, so be wary of any offer that claims otherwise. Most look at the business's credit file and, for smaller businesses, the owners' or directors' personal credit too. A past problem doesn't always rule you out, but it needs explaining. Your broker sends your application to a lender whose rules fit, so you're not collecting credit enquiries for nothing.
There's no single rate — the lender sets it after assessing your business. The main factors are whether the loan is secured or unsecured, how long you've traded, your cash flow, the term and your credit history. Secured loans are generally priced lower than unsecured ones. The rate in the calculator above is only a placeholder you can change. Your broker compares options once your details are in.
If the money is for the business, a business loan is usually the right tool. It's assessed on the business's cash flow and keeps business and personal debts separate. Interest on business borrowing is generally tax deductible — check with your accountant. A personal loan is assessed on your personal income and sits in your own name, which can make your books and tax harder to manage.
Often, yes — when the borrower is a company or trust, lenders commonly ask the directors or trustees to personally guarantee the loan. A guarantee means you're personally responsible if the business can't pay. Whether one is needed depends on the lender, the loan size and the security offered. Always read the guarantee before you sign, and get independent legal advice if you're unsure what you're agreeing to.
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.