Unsecured business loans. Keep the house out of it.
Unsecured business loans let you borrow without offering property as security. In Australia you'll usually need an ABN, at least six months of trading and business bank statements showing steady income. The amount depends on your turnover and cash flow, and lenders can consider weaker credit if cash flow supports repayments.
At a glance
- No property or asset needed as security
- Needs an ABN and at least six months of trading
- Assessed mostly on business bank statements
- Loan size is based on turnover and cash flow
- Weaker credit considered when cash flow stacks up
- Some loans can be funded same day after approval
What are unsecured business loans?
Unsecured business loans are business loans that don't need property or another big asset as security. Your business's cash flow is what the lender relies on. If money comes in regularly and there's room for a repayment, that's the main story.
This suits a lot of Australian business owners. Maybe you rent. Maybe your home loan is fairly new and there isn't much equity yet. Maybe you'd just sleep better knowing the family home has nothing to do with the business. All fair enough.
Am I eligible for an unsecured business loan?
You're likely eligible to apply if you have an ABN, six months of trading and a business bank account with steady deposits. Here's the checklist in full.
| Requirement | What it means | Handy tip |
|---|---|---|
| Active ABN | Your business is registered and trading | Check it's current on the ABN Lookup site |
| 6+ months trading | Enough history for a lender to see patterns | Longer history usually means more options |
| Business bank account | Income flows through a dedicated account | Keep business and personal money apart |
| Regular deposits | Steady trading income over recent months | Bank your takings rather than holding cash |
| Room for repayments | Cash flow can comfortably cover the loan | Tell us about existing loans up front |
| Clear purpose | You know what the funds are for | Be specific; it helps the lender say yes |
No tax returns, no balance sheets and no business plan required. If you can tick most of these boxes, you're in good shape to check your options.
What decides how much I can borrow?
Your turnover and cash flow decide how much you can borrow. Lenders look at a handful of practical things:
- Average monthly deposits over the past several months
- Consistency of your income, including seasonal dips
- Existing repayments to other lenders
- Bounced payments or time spent in the red
- Time in business, since longer history often means more confidence
- Your credit history, although weaker credit can still be considered
Because every business is different, there's no one figure that fits all. A busy restaurant in Melbourne and a one-person bookkeeping practice in Darwin will naturally be looked at differently.
Why would I choose unsecured over secured?
You'd choose unsecured if you don't own property, don't want to use it, or need a smaller amount without any property paperwork. Common reasons include:
- You rent your home and your business premises
- Your property doesn't have much equity yet
- You'd rather keep your home completely separate from the business
- You only need a modest sum for stock, tools or a short gap
- You don't want to deal with property details or title searches
On the flip side, if you own property with solid equity and need a bigger amount, a property-secured loan often gives you more room and even fewer documents. See low doc business loans for how the bank statement side works in more detail.
That's the gist. Want your options?
Just show meWhat can I use an unsecured business loan for?
You can use an unsecured business loan for almost any legitimate business purpose. Everyday examples include:
- Buying stock before a peak season or a big order
- Paying suppliers to keep your trade discounts
- Upgrading equipment, tools or tech
- Covering wages while you wait on a slow-paying client
- Marketing, a new website or signage
- Small renovations or a fit-out for a new site
Tell us the specific reason. A clear purpose makes the lender's job easier and your answer quicker to arrive.
Who uses unsecured business loans?
All kinds of renters, newer homeowners and owners who like clear boundaries. A few made-up examples:
The barber in Hobart. He's been trading for two years from a rented shop, with steady card takings every week. He wants to add a second chair and hire another barber. No property, but his bank statements do all the talking.
The e-commerce seller in Brisbane. Her online store has grown fast, and she needs stock for the Christmas rush. She rents, and her accountant is months away from finishing last year's numbers. A lender reviews her statements through a secure bank link and assesses the application on her current sales.
The electrician in Adelaide. He owns a home but would rather not use it. His business account shows regular deposits from builders. An unsecured loan covers a new van fit-out while keeping the house out of the conversation.
How do I apply for an unsecured business loan?
You apply in three easy moves:
- Fill in the 60-second form. Free, quick and invisible to your credit file.
- Chat with a real person. They'll confirm unsecured is the right route and explain what's needed.
- Share your bank statements. A view-only connection to your bank handles this in a few clicks.
From there, the lender assesses your application, subject to approval. Some unsecured loans can be funded same day. Each loan is priced on how your business looks, and we push for the sharpest deal your numbers can earn.
Does applying affect my credit score?
Checking your options doesn't affect your credit score. Our form is just a way of telling us about your business, so nothing shows up on your file with Equifax, illion or Experian.
A full bureau check only happens further down the track, once you've chosen to proceed, and we'll give you a heads-up first. It's a sensible way to shop around without collecting a string of enquiries, which can drag a score down over time.
What if my business is newer or smaller?
If your business has been trading for less than six months, an unsecured loan usually isn't available yet, though property owners may still have options. Our new business loans page covers that. For businesses that are established but on the smaller side, head to small business loans.
That's the gist. Want your options?
Just show meUnsecured. Unfussy. Just your business and its bank statements.
FAQs
What is an unsecured business loan?
An unsecured business loan is funding that doesn't require property or another asset as security. Instead, the lender assesses your business's cash flow, mainly through your business bank statements, to decide whether you can comfortably make repayments. It suits owners who rent, don't have enough equity, or would simply prefer to keep their home out of the deal.
What are the requirements for an unsecured business loan in Australia?
The basics are a registered ABN that's been trading for half a year or more, plus a business account that shows money coming in on a regular basis. Lenders also consider what you already owe and your credit history. Any structure can apply, whether you're a sole trader, partnership, company or trust.
How much can I borrow with an unsecured business loan?
Your borrowing limit is shaped by how much flows through the business each month, how steady that flow is and what repayments are already going out. That's why there's no universal figure. Owners wanting a bigger sum who hold real estate can also look at borrowing against it, which can reach into the millions.
Can I get an unsecured business loan with bad credit?
Weaker credit can be considered for unsecured business loans, as long as your cash flow clearly supports the repayments. Lenders will want to understand what happened and see that your business bank account shows steady, reliable income. If your credit is poor and you own property, a secured loan may give you more options.
How quickly can an unsecured business loan be funded?
Some unsecured business loans can be funded the same day, and in some cases within a couple of hours of approval. Timing depends on how quickly you share your bank statements, the lender's assessment and signing the loan documents. Sharing statements through a secure read-only bank link usually keeps things moving.
Do I need financial statements for an unsecured business loan?
Usually not. These loans are low doc, so the lender's attention goes to your recent account activity instead of formal year-end reports or lodged returns. That's handy if your accountant is still working on last year's figures or your lodgements have slipped a little behind schedule.