We help our clients apply for the right unsecured business finance to help manage cash flow and cover short term debts.

No Property Security Required

When you need a flexible business loan and don't want to use your personal property to secure the business loan; then unsecured business loans can be a good option.

Multi Directors

Seeking a business loan for a company with multiple directors and a complex structure? Issues could arise when an individual directors asset is used which limits that single directors personal investment opportunities. Do you use one or multi directors property; or seek an unsecured business loan avoiding impact on personal investment opportunities.

Flexible Income Assessment

Flexible Income assessment such as cash flow, accounting packages, profit and loss, or simply obtain funding against your invoices. Obtain finance using a flexible approach to your income.

What Are Unsecured Business Loans?

Unsecured business finance is a loan facility that is established without the use of collateral or assets security such as residential or commercial real estate. They are available in a business sense when the funds are used for business purposes.

We believe unsecured business loans are a great choice when your business has good cash flow, and a short term loan is required. They suit business owners who don't want to use their valuable equity in property as security. They can also work well if you have a complicated business structure or have issues that may be affected by obtaining secured finance.

Essentially an unsecured business loan brings forward surplus cash flow from a business. It can be used to power growth in a business to buy equipment or pay for new staff costs for example.

A free unsecured business loan assessment will assist you in identifying the best option available to obtain the unsecured finance for the purpose you have. Different loans can suit different needs such as providing working capital, paying a tax debt, or paying invoices for critical suppliers.

Call Loan Saver Network today for a free unsecured business loan assessment on 1300 796 850.

Let's talk about a solution that suits you

What Types Of Unsecured Finance Is Available?

There are a number of different facilities available which vary in how the funds are disbursed to you, the assessment, and also in the method of repayment. The types of unsecured business facilities are:

  • Business Cashflow Loans.
  • Invoice Factoring/Invoice Discounting.
  • Combination of Invoice Finance and Business Cashflow Loan

See below for a detailed description of each type of facility.

Business Cash Flow Loans

These loans are based on the monthly cash flow of the business and were originally designed to be used for businesses with high daily transactions through eftpos facilities. In recent times they have migrated to be used for a wider variety of businesses, with interest rates based on the risk, and repayments structured to suite the revenue of a business. Loan terms could be anywhere from 1 month to 24 months, however the preferred term is 12 months.

Unsecured Business Loan Specifics:

  • 12-24 Month terms
  • Income assessed by accounting software access or bank statements <$50k (lender conditions apply)
  • Income assessed by Profit and Loss, financials, accounting software access or bank statements >$50k (lender conditions apply).
  • No property security required. PPSR Business security required
  • Loan Facility in Business Name
  • Loan amounts of 80-120% of monthly cash flow (lender conditions apply)
  • Settlement in as little as 4 days.

Find Out More 1300796850

Invoice Factoring / Invoice Discounting

Invoice Factoring or discounting facilities are offered based on the invoices of your business. If you’re customers have 90-day terms on the invoices, this can severely affect your business and your business cashflow. We find businesses mostly suffer when there is a change in terms on the invoices where 30-day terms are extended to 90-day terms and your business needs to cover a further 60 days before receiving revenue.

In these instances, you can obtain unsecured business finance against the outstanding invoices and receive up to 80% of the outstanding invoices. The remaining 20% is received once your customer pays the invoice (minus the interest and costs which vary depending on term of invoice). As the costs are associated to the invoice they are not an ongoing overhead to your business and are associated to a cost of the transaction.

Invoice Factoring/Invoice Discounting Finance Details:

  • Ongoing facility to suit business need.
  • No property security required. PPSR Business security required
  • Loan Facility in Business Name
  • Loan amounts of 80% of invoice (lender conditions apply) - remaining 20% retained by client minus costs.
  • Some lenders will factor invoices on an ad hoc basis without the need for financing all invoices.
  • Settlement in as little as 7 days.

Find Out More 1300796850

Variations in this type of facility include:

  • Based on whether the factoring company requires all invoices to be factored, or on an ad-hoc basis on individual invoices that you determine.
  • Collection of invoice payments; some factoring companies collect payments while others allow you to receive the funds and pay back the funds owed to the factoring company. The difference is in whether your client knows about your facility, or it is sitting in the background and your invoice collection processes don’t change.

Invoice Finance

Invoice finance is where funds are provided to pay your invoices directly, while you retain the cashflow of your business which can be used for other purposes. Usually funds can also be provided for cashflow purposes, however this is usually limited to small amounts up to $15000. Invoicing Finance is largely used for business expansion, or minor fit outs and are very good facilities for new, or recent start up businesses where there is little evidence of cashflow. The facility amount offered would be largely based on the company and personal credit scores, hence clean credit would be mandatory requirement.

Find Out More 1300796850

What Purpose Can Unsecured Finance Be Used For?

Unsecured finance can be used for a variety of purposes, with each facility noted below having a different intention and purpose. One of the main underlying purposes would be the ability to secure finance without the use of real estate security. This would be useful where there are multiple directors and a secured finance facility would either have the loan secured against one or multiple directors properties, which could potentially cause future issues with refinancing or the directors personal investment interests.

Unsecured facilities can be established in the business or company name, without the need to implicated personal security in the borrowing of funds. If the facility was established in the personal names, then there would need to be an accounting process implemented to accommodate the business borrowing the funds from the individual directors. As an individual; when lending funds to your business a PPSR security would usually need to be applied to secure your personal interests in the event of a business wind up.

In any case, these are all the issues that could potentially occur when using secured facilities. Secured facilities have risks and benefits, along with unsecured facilities having different risks and benefits.

Loan Saver Networks team can assess the benefit and risks for each type of facility and assist in developing a strategic approach to your business financing requirements. You may also be able to apply for other business finance such as caveat finance or a second mortgage, if you have the right advice.

Requiring Finance?

If you require a business loan from $5,000 to $500,000 with no upfront fees* then apply now! We'll have one of our loan consultants call you as soon as possible.