- Company
- Banjo Loans Pty Ltd
- Type
- SME-focused online lender
- Products
- Unsecured small business loans, Business line of credit, Asset purchase finance, Refinance of existing business debt
Banjo Loans is an Australian online lender focused on small and medium business funding. The business writes unsecured term loans and lines of credit through a fully digital application path, with credit assessment based on real-time bank account data and Comprehensive Credit Reporting. Banjo is broker-distributed and direct-to-consumer.
What Banjo Loans actually does
Banjo Loans writes unsecured small business loans and lines of credit to Australian SMEs through a fully digital model. The credit assessment uses real-time bank account data shared through Open Banking plus standard CCR business credit checks. The application path is designed for SME borrowers who are time-poor and need a faster decision than a Big 4 commercial application can deliver.
Banjo competes in the same SME segment as Prospa, OnDeck, Moula, Capify and GetCapital. The differentiation between them sits mostly in credit policy nuances and week-to-week pricing rather than fundamental product structure.
When Banjo is the right pick
Banjo is a reasonable choice for SME borrowers who: need unsecured term funding or a line of credit between $20,000 and $500,000, have a trading history of at least 12 months, want a fast digital application with no Big-4-style documentation burden, and are comfortable with the unsecured rate premium over secured Big 4 alternatives.
It is not the right pick for very large funding needs (above $500,000), for businesses without established trading history, or for borrowers who can wait for and provide security for a Big 4 secured business loan at a lower rate.
How Banjo compares to Prospa
Banjo and Prospa are two of the larger Australian SME online lenders. Both write unsecured term loans with fast digital application. The rate gap between them varies by file profile and week-to-week pricing. The credit policy nuances matter: Banjo and Prospa each have their own preferred file types within the broader SME segment, and a specialist commercial finance broker compares both as a daily pattern.
The rate honesty
Banjo's rates sit at the standard unsecured SME premium over Big 4 secured business lending. For SME borrowers comparing options, the relevant tests are: speed (how fast funds are needed), security (whether the borrower can provide it), and total cost of borrowing over the loan life. Big 4 secured business lending is materially cheaper for borrowers who can wait and provide security; Banjo and the rest of the SME unsecured set win on speed and accessibility.
The honest pros and cons
- Fast digital application and credit decision for SME borrowers
- No Big-4-style documentation burden
- Real-time bank account data integration for current cash flow assessment
- Established Australian SME lending presence
- Unsecured pricing means materially higher rates than Big 4 secured alternatives
- Not the right fit for very large funding needs
- Newly-established businesses (under 12 months) generally do not fit
- Smaller national brand recognition than ASX-listed competitors
Frequently asked questions
Is Banjo Loans legitimate?
Yes. Banjo Loans operates as a regulated Australian commercial lender. Verify the current commercial lending registration and applicable licences on the Banjo website before engaging.
What is the Banjo Loans interest rate?
Banjo's rates are quoted on a per-application basis depending on the borrower's credit profile, trading history, loan amount and term. The headline rate range is published on the Banjo website; the specific rate quoted depends on the credit assessment outcome.
How much can my business borrow from Banjo?
Banjo's unsecured small business loans extend up to approximately $500,000 in standard structures. The actual approved amount depends on the business's trading history, cash flow profile, and existing commitments.
How does Banjo compare to Prospa?
Banjo and Prospa are two of the larger Australian SME online lenders. Both write unsecured term loans with fast digital application. The credit policy nuances and rate offered for a specific file vary; a specialist commercial broker compares both as a standard pattern.
Does Banjo require security?
Banjo's standard small business loan product is unsecured, which means no specific asset is held as security. Some larger loan structures may require a personal guarantee from the business owners or directors. The exact security position depends on the loan structure and amount.