For many self-employed individuals and small business owners, starting-up and running your own business represents a dream, action, hard-work and an alternative pathway to success compared to a full-time day job.
Turning your passion and hobby into an income-generating operation is never easy. If your revenue matches your success, there’s no reason you should be disadvantaged when applying for a loan when self-employed in Australia – especially noting there are around 2.1 million small businesses supporting the Australian economy.
We provide expert advice on finding the right unsecured business loan options for everyday self-employed Australians. Our friendly team is happy to answer any questions and help you take that first step, so speak with us today on (07) 5644 3500
Frequently Asked Questions (FAQs)
Are small business loans secured or unsecured?
Small business loans can be either secured or unsecured, depending on the finance agreement with the lender.
Secured loans are the preferred financing agreement with larger banks. Usually, a tangible asset or property owned by the business is used as security for the loan. This means if the repayments are not met, the lender has the right to sell the asset used as security to recover the loan principal and interest owed.
Secured business loans are similar to personal home loans in this respect and operate in a very similar fashion – albeit being for a much shorter term. Typically, a security interest is registered on Personal Property Securities Register (PPSR) which gives rights to the lender and protects their financial interests, allowing them to usually offer a more competitive interest rate, the interest rate, loan term, and increase borrowing amount to the small business loan applicant.
Some small business, sole traders and self-employed individuals may find it difficult to be approved for a secured loan due to the stringent background and credit history checks conducted by a lender.
Connect with us on (07) 5644 3500 or via our online enquiry form to find out if you are eligible for a low-rate Unsecured Loan.
What are unsecured business loans?
Quite often, sole traders and small business owners may not want to obtain or have the collateral for a secured loan. In this instance, an unsecured business loan can be the perfect option for small business, entrepreneur or sole trader with limited credit history to acquire access to capital without the need for assets.
What is the interest rate on an unsecured business loan?
Unsecured loans generally have higher interest rates than secured loans and offered in smaller sums compared to secured loans
Factors such as the loan term, your/your businesses’ financial circumstances (e.g. strength of cash flow), and creditworthiness will impact the interest rate on the loan. To find out the best interest rate for an unsecured loan, call us on (07) 5644 3500.
Can I get an unsecured business loan?
Unsecured Business Loans require a stronger credit score/credit history than secured Loans, as the lenders must be assured about the borrower’s ability to pay back the loan agreement.
To find the best unsecured loans deals for you or your business, contact our friendly, professional team dedicated to delivering the best for our clients on (07) 5644 3500.
