What is the maximum I can borrow with an unsecured business loan?

Most unsecured business lenders in Australia cap facilities at $250,000–$500,000, though some fintech platforms offer up to $500,000 for businesses with strong revenue. Property-secured loans can fund $50,000 to $5 million or more, making them the only option for larger borrowing needs.

Are unsecured business loan rates always higher than secured?

Generally yes. Unsecured rates typically range from 15% to 35% p.a., while secured first mortgage rates start from 8.75% p.a. The rate premium reflects the higher risk the lender takes without property security. However, some fintech lenders offer competitive short-term unsecured rates for businesses with strong cash flow and credit history.

Can I get an unsecured business loan with bad credit?

It's difficult. Unsecured lenders rely heavily on credit scores and financial history because they have no property security to fall back on. If you have credit impairments, a property-secured loan through a private lender is typically a more accessible and affordable option.

Do unsecured business loans require a personal guarantee?

Most do. A personal guarantee makes the director personally liable for the business debt, which means the lender can pursue personal assets if the business defaults. This reduces the gap between 'unsecured' and 'secured' from a risk perspective.

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Can I Get an Unsecured Loan for My Business? What Australian Borrowers Need to Know

Jan 23
1 min read

Updated: Apr 15

If you're searching for an unsecured business loan, you're likely trying to avoid putting property on the line. That's a reasonable instinct — nobody wants to risk their home or investment property if they don't have to.

Can I Get an Unsecured Loan for My Business? What Australian Borrowers Need to Know

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