How to Get a
Small Business
Loan in Australia?
How to Get a
Small Business
Loan in Australia?
What is a small business loan?
Understanding how a small business loan works is important when making decisions about your business’s financial future. A small business loan provides access to funds that can be used to support your operations or growth, with repayments made over an agreed period. These repayments typically include the borrowed amount (principal) plus interest.
Flexible Repayment Options
One of the key benefits of small business loans is the flexibility in repayment structures. Depending on the lender and loan product, repayments can often be made daily, weekly, or fortnightly, allowing businesses to choose a schedule that aligns with their cash flow.
Funding for Different Business Needs
Whether you’re launching a new venture, expanding your operations, or managing short-term financial pressures, small business loans can provide the support needed to help your business move forward.
Eligibility Criteria
- An active Australian Business Number (ABN)
- At least 6 months of trading history
- Monthly turnover of more than $5,000
Don’t worry if your business doesn’t meet
these criteria just yet. We have access to loan options for businesses at
different stages, including startups or those without a consistent revenue
stream. Asset Funder works with a network of over 50 trusted lenders,
allowing our brokers to help you find some of the most suitable small business
loan solutions in Australia.
How an Independent Broker Can Help You
Find the Best Small Business Finance
Navigating the world of small business loans can be overwhelming, especially with the wide range of lenders and loan products available. Comparing different options can take up valuable time and energy that could otherwise be spent growing your business. This is where a broker like Asset Funder can make a real difference.
Rather than approaching a single bank or trying to manage the process yourself, working with Asset Funder gives you access to a broad range of lenders and finance solutions tailored to your business needs. Here’s why partnering with Asset Funder can help you secure the most suitable small business finance for your business:
Access to Multiple Lenders: Unlike banks that only offer their own products, Asset Funder works with a large network of lenders (90+), giving you access to a broader range of loan options and more competitive rates and terms.
Personalised Solutions: Every business is different. Our brokers take the time to
understand your financial position and goals, then match you with loan options
that best suit your business needs.
Save Time and Effort: Instead of spending time researching and comparing lenders yourself, Asset Funder manages the process for you. We streamline the
application by presenting the most suitable options, saving you time and
effort.
Expert Negotiation: Our experienced brokers work with lenders on your behalf and can often negotiate better terms, including more competitive interest rates and flexible repayment structures.
Trusted Expertise: With extensive experience in small business finance, Asset
Funder guides you through every step of the loan process, helping you secure the right funding solution with confidence.
Choosing Asset Funder means more than simply submitting an application to a bank. You gain access to expert guidance, tailored solutions, and a wide range of lenders—helping your business secure the funding it needs to grow and succeed.
Our Loan Guide
$5k - $1M
Starts from 7.99% p.a.
3 – 60 months
-
Pre - approved time
Unsecured Small business loans:
2-4 hours | Secured Small Business loans: 24 – 48 hours -
Unconditional approval & settlement time
Unsecured Small business loans: 24-72 hours | Secured Small Business loans: 3-7 days -
Pay Cycle
Daily / Weekly / Fortnightly -
Security
May be required after a certain amount
Disclaimer - The information provided in this critical information sheet is for general guidance only. Please contact us if you require further details.
What you need to know?
Can be used for
- Buying stock/Inventory
- Paying wages/rent
- Expansion into branches or another unit
- Renovating business premises
- Other working capital needs
Documents required (low doc approval)
- Up to $250,000 basis
- Last 6 months bank statements
- Valid identification proof
Documents required (full doc approval)
- More than $250,000 basis additional docs
- Financial statements
- ATO statement
Benefits
- Quick and hassle-free approval
- Funding possible in 24 hours
- Least documentation
Calculate your business loan estimate today
Simply slide the button or enter the loan amount and terms (in weeks) you are looking to borrow.
The estimated repayments are based on the annual percentage rate and are for indicative purposes only. They’re based on interests generally charged by the lenders in this space, however, every business is different and the actual repayment would depend on factors such as:
- Industry
- Cash Flow
- Trading Time
- Banking Conduct
- Credit Worthiness
Disclaimer: The calculation provided is for indicative purpose only. The interest rate and repayment may vary based on individual business risk profile.
Feel free to use our Equipment Finance Calculator
**Note: For exceeding 120 no. of payments, a group of 12 payments will be combined into a single payment number for better chart visibility.
| Period | Payment | Interest | Balance |
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Calculator Disclaimer
The repayment amount shown using this calculator is an estimate, based on information you have provided. It is provided for illustrative purposes only and actual repayment amounts may vary. To find out actual repayment amounts, contact us. This calculation does not constitute a quote, loan approval, agreement or advice by Asset Funder. It does not take into account your personal or financial circumstances.
If you wish to get more accurate loan repayment figures, please complete your application
form by filling out your loan details. One of our lending specialists will get in touch with you
to discuss your requirements in detail.
Explore Small Business Suited to You
When searching for a financing option, it’s easy to feel overwhelmed by the amount of information available online and uncertain about which business loan is the right fit for your company. To make the process easier, we’ve put together a selection of flexible small business loan options designed to help you find financing that suits your business needs.
Bad Credit Loans
Generally these loans are for businesses with a bad credit history in the personal or business credit in the past.
- Generally short term in nature 3 - 12 months
- Stringent lending norms
- Comparatively higher pricing
Low Doc Busines Loans
The loan enables self-employed borrowers and small businesses to secure cash flow or business capital without the requirement to furnish supporting financial documentation typically needed for loan approval.
- Minimum Documentation
- Borrow up to $250,000
- Loan terms upto 36 months
Cash Flow Finance
Cash flow is the movement of money into a business (revenue) and out of it (expenses). Cash flow finance is an unsecured loan based on a business’s monthly cash flow.
It helps businesses cover short-term cash shortages and quickly maintain smooth operations.
- Loans are approved to be used for business purposes only
- Term varies between 3 months to 60 months
- Generally suitable for small and medium enterprise businesses
What you should know about Small Business Loan
Small Business Loans in Australia
There are more than 2 million Small and Medium Enterprises (SMEs) in Australia, accounting for over 99% of all businesses nationwide.
However, many of these businesses struggle to access timely funding from traditional banks due to strict lending criteria such as limited trading history, smaller operational scale, lack of security, limited profitability, or past credit issues. As a result, many businesses miss out on growth opportunities or face financial pressure when they need support the most.
This gap in access to funding has led to the rise of alternative cash flow lenders within the Australian market.
Thanks to advancements in financial technology, many private fintech lenders can now provide fast and flexible funding solutions, often approving loans within hours and requiring minimal documentation. These lenders are typically more willing to assess businesses on their current performance and future potential rather than relying solely on traditional lending metrics.
- Simple and straightforward application process
- Fast and hassle-free approvals
- Funding available within as little as 24 hours
- Minimal documentation requirements
- Loan terms ranging from 3 to 36 months
- Past credit issues may still be considered
- Early repayment options available
As a small business ourselves, we understand the challenges business owners face. That’s why we work closely with our clients to find financing solutions that are tailored to their unique needs and help support their business growth.
Advantages and Disadvantages of
Taking a Small Business Loan?
Advantages
- No assets required as security
- Fast approval and funding
- Flexible use of funds
- Accessible for businesses without significant assets
Disadvantages
- Interest rates may be higher than secured loans
- Loan amounts may depend on business performance and credit profile
- Repayment terms are often shorter
- Lenders may require a director’s guarantee
Required documents for a small business loan
Small business loans of up to $250,000 can often be approved with minimal documentation.
Typical requirements may include:
- Last 6 months of business bank statements
- Valid identification
For unsecured business loans above $250,000, additional documentation may be required due to the larger loan amount.
This may include:
- Financial statements
- ATO statements
Small Business Loan Application Criteria
The small business loan application process is typically straightforward and assessed using a scoring matrix. Below are some of the key factors considered as part of this assessment:
Credit history
For small businesses—often new and operating on a smaller scale—credit score plays a key role in loan approval. A strong credit score increases a lender’s confidence, making it easier to secure a higher loan amount and better terms, while a lower score can limit borrowing options.
Time in business
Lenders often look at how long a business has been operating to gauge its stability and growth potential. Generally, businesses that have been running for over a year are seen as more likely to take on additional debt. However, new businesses can still qualify for secured small business loans—though their initial borrowing capacity may be lower than that of established companies. Consistently making on-time repayments will help increase your loan eligibility over time.
Financial Strength
Lenders typically assess the amount you can borrow by reviewing your business’s cash flow and its ability to comfortably service the loan. Businesses with higher and more consistent monthly revenue may be eligible to borrow larger amounts.
Industry
The industry in which your business operates can influence the unsecured loan amount you may be approved for. Businesses that sell directly to consumers (B2C) often receive immediate payments via cash or credit card, providing steady cash flow—something lenders favour. In contrast, companies that primarily operate business-to-business (B2B) and rely on invoicing may experience delayed payments, which lenders may view as a higher risk, potentially limiting the loan amount available.
Security
While small business loans can often be obtained without providing security, lenders may view applications more favourably when the business or its directors have supporting assets. This can help increase the potential loan amount and may also lead to more favourable loan terms.
At Asset Funder, we believe every business has unique strengths. Our role is to help you highlight these to lenders, so you can secure the small business loan that best fits your needs.
Key Considerations Before Applying for a Small Business Loan
Small business loans can help ease cash flow pressures, but the application process can be stressful. It’s important to avoid certain mistakes to improve your chances of approval.
Common Pitfalls to Avoid When Applying for a Loan
- Applying to Multiple Lenders Randomly: Submitting applications to several lenders in a short time can hurt your credit score. Focus on lenders that align with your business’s specific needs.
- Not Being Fully Transparent: Always provide complete and accurate information about your business and finances. Omitting details can cause delays or lead to rejection.
- Overestimating Revenue: Inflated financial projections can work against you. Lenders prefer realistic, evidence-based figures when evaluating your loan request.
- Ignoring Loan Terms: Carefully review all loan terms, including repayment schedules, fees, and penalties, to avoid unexpected issues later.
Finding a small business loan with the right rate, terms, and amount can be challenging. To help you avoid common pitfalls, we work closely with our clients to match them with the loan that best fits their business plan. At Asset Funder, our goal is to guide you through the process and ensure you secure the loan that meets your needs. Just complete the application form or send us a message, and one of our lending specialists will get in touch to discuss your financing requirements.
- Boost Your Creditworthiness: Lenders review your credit history to assess risk. A strong credit score can improve your chances of securing favorable loan terms. Pay off existing debts, limit unnecessary credit checks, and stay current on bills.
- Show Strong Cash Flow: Providing a clear cash flow statement with consistent revenue reassures lenders of your ability to meet repayments. Keep detailed financial records and aim for positive cash flow when applying.
- Prepare a Business Plan: A well-structured plan demonstrating how you will use the loan for growth strengthens lender confidence. Include realistic projections and a clear breakdown of how the funds will support your goals.
- Select the Right Loan Amount: Borrow only what your business needs. Over-borrowing can strain cash flow and increase the risk of missed repayments. Carefully calculate your loan requirements before applying.
- Meeting working capital needs
- Expanding into new branches or units
- Purchasing property
- Buying stock or inventory
- Acquiring equipment
- Covering wages or rent
- Renovating business premises
- Paying tax obligations
- Funding advertising and marketing
Steps to Apply for an
Small Business Loan
1. Check your
Eligibility
Check your business’s basic loan eligibility and complete the application form in just 60 seconds.
2. Submit your
application
Once you submit your application form, we’ll contact you to discuss your business needs and guide you on the documents required.
3. Get an approval as quick as in 24hr
Once we have all the required documents, we submit your application to the most suitable lender and can secure loan approval in as little as 24 hours.
Get pre-approved
Without any credit checks
What's the difference?
Unsecured vs. Secured Business Loan
Unsecured Business Loan
- No collateral required
- Fast, often within 24–48 hours
- Typically, smaller
- Higher, due to higher risk
- Stricter credit & cash flow assessment
- Lower risk of losing assets
- Flexible use of funds
Secured Business Loan
- Requires business or personal assets as security
- Slower due to asset valuation and paperwork
- Can be larger depending on asset value
- Lower, as risk is reduced for lender
- May be easier if strong assets are available
- Higher risk—assets can be claimed if loan defaults
- Flexible, but may depend on asset type
Why choose Asset Funder for business success?
Competitive
terms
We prioritise our customers’ best interests by securing business loans on the most competitive terms.
- Expert structuring and presentation of complex deals
- Supported by a team of qualified Chartered Accountants, CPAs, and experienced finance brokers
Small business specialists
With more than 15 years of experience in small business financing, we provide tailored financing solutions by connecting small businesses with a network of over 90 lenders.
Customer satisfaction
Our clients’ testimonials reflect the quality of our service. You can view their reviews to see their
experiences with us.
Clear communication
We value your time and never give false promises. Transparent and straightforward communication is at the core of everything we do.
