Unsecured Business Loans
Flexible Business Funding Without Using Property as Security
Unsecured business lending can provide access to funding for stock, equipment, expansion, fit-outs, acquisitions and other business needs without relying on residential or investment property as security.
Understanding Unsecured Business Finance
What Is an Unsecured Business Loan?
An unsecured business loan does not generally require a residential or commercial property to be offered as collateral. Lenders instead assess factors such as the business, cash flow, trading history, credit profile and loan purpose.
This can appeal to owners who do not want to use available property equity or who need business funding without arranging property security.
Because the lender has less security than with property-backed lending, pricing can be higher and loan terms may differ considerably.
Business Funding Uses
What Can an Unsecured Business Loan Be Used For?
Available purposes depend on lender policy and the financial position of the business, but unsecured funding may be considered for a range of legitimate business needs.
Stock and Inventory
Fund inventory purchases, seasonal requirements or a larger order where cash flow would otherwise be stretched.
Equipment and Fit-Out
Finance eligible equipment, furniture, technology or business premises fit-out costs.
Business Expansion
Support expansion into a new location, additional capacity or other eligible growth initiatives.
Business Acquisition
In some circumstances unsecured funding may contribute towards acquiring another business or business assets.
Working Capital
Provide additional cash flow to help manage eligible short-term expenses or timing differences.
Opportunity Funding
Access funding for an eligible business opportunity where timing is important and available cash is limited.
Understanding the Trade-Off
Unsecured Finance Can Be Faster — But Cost Still Matters
Unsecured business lending may involve a simpler security structure than property-backed lending. That can be useful where access to funding is time-sensitive, but the total cost and commercial benefit still need to be considered.
- No property valuation may be required
- Funding timeframes vary by lender
- Rates can be higher than secured lending
- Loan terms may be shorter
- Personal or director guarantees may apply
- Business cash flow remains important
- Fees and repayment frequency should be compared
- The commercial benefit should justify the cost
What Lenders May Assess
What Information Can Be Important?
Trading History
How long the business has operated and its ABN or company history may affect eligibility.
Business Turnover
Lenders may review bank statements, revenue and cash flow to assess repayment capacity.
Credit Position
Business and personal credit information may be considered depending on the loan structure.
Our Process
A Clear Business Finance Process
Discuss the Funding Need
We start with the amount required, purpose of the funds and timing involved.
Review the Business
We assess available business information, commitments and likely documentation.
Compare Suitable Options
We consider lender policy, structure, repayments, fees and overall cost.
Application Support
We help prepare and lodge the application and communicate with the lender through assessment.
Local Business Finance Broker
Business Finance Support From Torquay to Geelong and Beyond
OCEAN Lending is based in Torquay and works with business owners throughout the Surf Coast, Geelong and surrounding areas, as well as clients elsewhere in Australia.
Frequently Asked Questions
Unsecured Business Loan Questions
Do I need to own property to obtain an unsecured business loan?
Not necessarily. Unsecured business lending generally does not rely on property as collateral, although lenders may still require guarantees and will assess the business and applicants.
Are unsecured business loans more expensive?
They can be. Because the lender generally has less security, pricing may be higher than comparable secured business lending. Rates, fees and terms vary.
How quickly can funds be available?
Timeframes vary depending on the lender, application complexity and information required. Faster assessment may be available with some lenders, but funding speed is not guaranteed.
Can unsecured finance be used to buy stock?
Potentially, yes. Stock and inventory are common business funding purposes, subject to lender policy and the overall application.
Will a director guarantee still be required?
It may be. “Unsecured” generally refers to the absence of specific property security and does not necessarily mean there will be no personal or director guarantee.
Is approval guaranteed?
No. Lending is subject to lender criteria, verification, business performance, credit assessment, documentation and formal approval.
Need Funding for Your Business?
Book a conversation with OCEAN Lending to discuss what your business needs, how quickly the funds are required and which lending structures may be worth exploring.
Email: scott@oceanlending.com.au
The information on this page is general in nature and does not take into account your objectives, financial situation or needs. Lending criteria, interest rates, fees, loan terms, security requirements and available lenders vary and are subject to change. Finance is subject to lender assessment and approval. Obtain professional taxation, accounting or legal advice where required.