About Business Loans
An unsecured loan is when the health of a business is used to determine creditworthiness, without the business owner needing to secure the loan by putting up an asset as security. Traditional banks tend not to off these as the arduous paperwork, low returns and higher risks involved don’t make it worthwhile. Many small business owners find themselves having to use an asset to secure a loan, or being declined.
Asset-based borrowing is when a business owner uses an asset they own to secure a loan. The asset can be either a personal asset like the family home, or a business asset like a truck or piece of equipment.
The vast majority of lenders, including the big banks, tend to secure loans against an asset. If you have trouble paying back the loan then your asset may be sold by the lender. In essence it’s a way of securing new financing by using the value of what you already have.
We’ve made it easy and fast. Simply click the apply button and complete our online form. All you need to have ready is your driver’s licence number and your business ABN. You can choose to allow us to use an advanced bank verification system link to instantly verify your bank information online. This process is quicker and means your application will be processed faster, in which case – have your main trading bank account details handy. Alternatively, you can choose to upload copies of your bank statements. Please make sure you have six months of statements as PDF documents ready to upload.
We can often provide a response in one hour – if you apply during standard business hours and allow us to use the advanced bank verification system link to instantly verify your bank information online. If you choose to upload copies of your bank statements we can provide a decision in as little as one business day.
We know growing your business is important, so we will work hard to get money to you as soon as possible. If you apply before 4pm on a business day and your application is approved, it is possible that you could have the money in your account the next business day.
The total amount of your loan will depend on the specific circumstances of your business. We look at a variety of factors to determine the health of your business and based on this information, you may be eligible for a loan amount up to $250,000.
Fees and Repayments
It is important to offer you easy ways to pay back your loan. To help you avoid missing repayments we offer daily, weekly or fortnightly repayments that are automatically deducted from your nominated business account.
We don’t charge interest because terms are usually less than 24 months. Instead we offer a factor rate. A factor rate is expressed as a decimal figure not a percent. It varies based on your industry, how long you have been in business, the health of your cash flow and other factors. When a factor rate is used, interest is charged to the principal when the loan is originated, it doesn’t compound.
There are no fees for early repayment and no balloon payment at the end of your loan. We are totally transparent with our customers about the total amount due and the date of the final payment. Once you make the final payment your balance will be $0.
We know fees can be confusing so we made it simple and transparent – there are no hidden fees and the amount due from day one includes the establishment fee. There are no additional fees (excluding any late payment or default fees) and no penalties for early repayment.