Our brokers work hard at understanding our client’s unique circumstances and helping them overcome common home loan challenges. Whether you’re a first home buyer or an experienced investor, we’ll help you find the best home loan for your situation. Whether you’re self-employed and have trouble proving your income or you’re a contractor or casual worker, we offer solutions for all types of clients’ income sources.
Does your company need to secure business loans without security as collateral? Unsecured business loans can be a good option for you. When you need to obtain fast, short term funding to take advantage of an opportunity or make up for revenue shortages, an unsecured business loan lets you spread out your costs over your loan period rather than having to pay for things outright. To borrow from the best business loans unsecured finance lenders, work with brokers from Break Free Home Loans. We can help you compare loans from different lenders to find the one that suits your business needs best.
What Are Unsecured Loans For Business
How Do They Work
Applications for unsecured business loans are typically fast and simple, and can even be done entirely online. Unsecured business finance allows you to get the funds you need without putting up security such as property or other fixed assets. They are often preferred because smaller businesses can have finance available without meeting banks’ rigorous lending criteria. When you receive finance, you will have to pay monthly loan repayments with interest over a set loan period. You can use the loan for any purpose, including:
- Boosting working capital
- Investing in inventory, equipment, property and other assets
- Renovations and expansions
- Hiring new staff
- Seizing new business opportunities
- Covering cash flow fluctuations
- Any expenses related to your business activity
How To Apply For Unsecured Business Loans In Melbourne
Choose The Right Lender
Prepare The Documentation
How Much You Can Borrow
You will often be asked to provide detailed business plans and confirm what you will use the funding for. It’s important to remember when you are applying for financing, you are taking on debt. You need to budget your loan and figure out how much you can afford to repay. Don’t overcommit your business, otherwise, you’ll risk major problems in the long run.
What You Should Know About Unsecured Business Finance?
Variable rates, on the other hand, will change according to the market’s interest rates. They can give you some of the lowest rates available, but are privy to fluctuations and will incur higher risk. Oftentimes, variable rate loans have more loan features but you should determine if they actually provide you the value you need. Fixed interest rates will allow you to hedge against future interest rises.
Your unsecured business loan rates, any ongoing fees and monthly amounts will decide your repayments. You need to be sure you can budget your loan obligation on top of your existing payments and debts.
Alternatives To Unsecured Business Funding
Whether it’s a credit issue, borrowing amounts, interest rates, or simply the speed of access to funds, your needs may vary. Rest assured, if unsecured business funding isn’t the one for you, there are other alternatives for finance available. This includes:
Line Of Credit
Business Credit Card
Traditional Business Loan
However, most loans have minimum borrowing amounts and may not be suitable for applicants looking to borrow smaller amounts. There is also a lengthy and rigorous application and approval process that may take months. Generally, these loans are only available to established businesses and 75% of SMEs who apply for them get rejected.
However, you will receive less than the overall value of the invoice. Overall, their cost is also more expensive than loan finance on an annual rate. Invoice finance lenders also have minimum turnover requirements. Therefore, it may not be available to new businesses without good sales history.
Do You Have Any Questions?
Frequently Asked Questions
What Is An Unsecured Business Loan In Melbourne?
What Do I Need To Get An Unsecured Business Loan?
How To Apply For Unsecured Business Loan?
- Prepare a business plan and budget for your loan to work out the type of finance you need
- Find out how much you need to borrow, for what purpose, how much you can afford to repay and over what period
- Compare lenders and loan products to choose a suitable loan and check your eligibility
- Gather supporting documents to prove your income, credit history and business performance—examples may include bank statements, credit sales or merchant statements, balance sheets, and other business documents
- Provide business details such as ABN, structure, location, industry sector, turnover, and how long you’ve been in operation
- Submit your application with your supporting documents
- The lender will assess your loan compared to your creditworthiness to determine your eligibility
- Once your loan is approved, you will sign a loan agreement and receive financing
- Make your loan repayments on time according to your payment schedule