Small Business Loans from 6.99% p.a.

Small Business Finance for Every Stage of Growth

Small businesses are the backbone of the Australian economy, comprising over 97% of all businesses and employing nearly 5 million people. Yet accessing affordable, flexible finance remains one of the biggest challenges for SME owners. The major banks have traditionally focused on larger corporate clients, leaving small businesses underserved with lengthy application processes and rigid lending criteria.

The good news is that Australia's lending landscape has changed dramatically. A thriving alternative lending sector now offers small businesses more options, faster approvals, and more flexible terms than ever before. As brokers with access to over 50 lenders, we can help you navigate this landscape and find the right funding solution for your business stage and needs.

Whether you are a sole trader needing $10,000 for a marketing push, a growing business requiring $200,000 in working capital, or an established SME looking at $1 million for expansion, there is a lender and product suited to your situation.

Types of Small Business Loans Available

Small business finance is not one-size-fits-all. The right product depends on your purpose, urgency, available security, and risk appetite. Here are the main options available to Australian SMEs:

Term loans provide a lump sum that you repay over a fixed period with regular instalments. These are ideal for one-off purchases, investments, or projects with a defined cost. Terms range from 3 months to 7 years depending on the lender and whether the loan is secured.

Lines of credit and overdrafts give you access to a revolving facility that you can draw on as needed. You only pay interest on the amount you use, making them ideal for managing cash flow fluctuations and covering short-term expenses.

Invoice finance unlocks cash tied up in unpaid customer invoices, providing up to 90% of the invoice value upfront. This is particularly valuable for businesses with long payment terms or seasonal revenue patterns.

Equipment finance funds the purchase of specific business assets like vehicles, machinery, IT equipment, and fitout. The equipment itself serves as security, making approval easier and rates competitive.

What Makes a Strong Small Business Loan Application

Lenders assess small business loan applications on several key factors. Understanding what they look for can help you prepare a stronger application and access better rates:

• Revenue consistency: Regular, predictable revenue demonstrated through bank statements and BAS returns shows lenders you can service the loan.
• Trading history: Most lenders prefer at least 6 to 12 months of trading. Longer histories generally mean more options and better rates.
• Credit profile: Both personal and business credit histories are assessed. Clean credit with no defaults or late payments opens the most doors.
• Available security: Property or assets as collateral reduces the lender's risk and unlocks lower rates and higher limits.
• Loan purpose: A clear, productive purpose for the funds (such as buying equipment that generates revenue) is viewed more favourably than vague or consumption-oriented purposes.
• Industry sector: Some industries are viewed as higher risk. Construction, hospitality, and retail may face more scrutiny, while professional services and healthcare are often viewed favourably.

Government Support for Small Businesses

The Australian government offers several programs to support small business funding. The SME Guarantee Scheme, for example, allows lenders to provide unsecured loans up to $5 million with the government guaranteeing a portion of the loan. This has made it easier for small businesses to access funding during and after the pandemic period.

State governments also offer various grants, subsidies, and concessional loan programs. Export Market Development Grants, Innovation Connections, and various industry-specific programs can supplement or reduce your need for commercial borrowing. Our team stays across these programs and can help identify any that apply to your situation.