Business loans: your questions answered

Most unsecured business lenders size a loan against turnover rather than assets, commonly to a share of monthly or annual revenue. On our panel, unsecured facilities generally run from around $5,000 to roughly $500,000, with larger amounts usually requiring security or stronger financials. The actual figure depends on your trading history, cash flow, existing commitments and credit profile. We can tell you the realistic range for your business before any application is submitted, but no amount is guaranteed until a lender approves it.

A business loan advances a fixed amount that you repay over a set term. An overdraft is a limit attached to a transaction account that you draw on and repay as needed, with interest charged only on the balance used. A loan suits a defined purchase or a one-off cost; an overdraft suits timing gaps between paying suppliers and being paid. Overdrafts often carry a line fee whether or not you draw the limit, so compare the total cost of holding the facility.

Yes, acquisition finance is available, though lenders assess it more closely than a working capital loan. They typically want the target business financials, the sale contract, a handover plan and evidence you have relevant experience. Goodwill on its own is difficult to lend against, so many deals combine a cash deposit, vendor finance and a loan secured by property or the acquired assets. Franchise purchases are often assessed against the franchisor system rather than the individual site.

No. An unsecured business loan can still require a personal or director’s guarantee. A guarantee may make you personally responsible if the business cannot repay the loan. We explain the lender’s security and guarantee requirements before you decide.

Timing depends on the lender, your application and the documents available. Tell us your deadline so we can explain the likely timing and what is needed to move forward. Funding is subject to lender approval and completion of any conditions.

We can review options for ATO debt and existing business borrowing. We look at your current repayments, cash flow and lender requirements, then explain any options available and their costs. Refinancing may change the term and total amount you repay.