Our review of Business Fuel
Business Fuel is an Australian small-business lender offering secured and unsecured business loans from $10,000 to $200,000. Approved loan amounts are determined by the average value of the borrowing company's monthly sales. Business Fuel provides 24-hour approval on applications, and terms between 3 and 24 months.
Business Fuel has a long history in the Australian lending market. The company has funded over $100,000,000 worth of loans since 2012. Additionally, 50 per cent of the company's revenue is generated by returning customers - illustrating the lender as a reliable source of funding for small-business borrowers.
|Suitable if your business:||Suitable for businesses considering:|
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Business Fuel Loan Information
|Loan Type||Secured Business Loan|
|Loan Amount||$10,000 - $200,000|
|Loan Term||3 - 18 months|
|Approval Time||24 hours|
Business Fuel Business Loan Overview
Business Fuel loans range from $10,000 to $200,000. Common reasons for seeking this amount of finance can include:
- Your business has stable cash flow and you want to expand its operations
- You want to apply for finance to upgrade or purchase new equipment
- You want to invest in vehicles or other assets for your business
Small business loans provided by Business Fuel cannot be used for personal purposes.
You can apply for a business loan with Business Fuel online:
- Once approved, funds can be made available in 24 hours
- Apply with only basic ID and business bank statements
- No application fees
- No ongoing facility fees
- Weekly repayment schedule
- Upfront factor rate amount incorporated into weekly payments
Business Fuel Small Business Loan Review
|Loan Feature||Loan Details|
|Approval Time||24 hours|
|Minimum loan amount||$10,000|
|Maximum loan amount||$200,000|
|Minimum loan term||3 months|
|Maximum loan term||18 months|
|Collateral Requirements||No collateral required for loans up to $100,000|
|Interest rate||Upfront factor rate calculated on loan amount and included in weekly repayments|
|Fees||No application or maintenance fees|
Learn more about how Business Loans work, and how to compare lenders.
How to apply for a Business Fuel Business Loan
You can apply for a Business Fuel business loan online. Applications require minimal paperwork, and loan approval can often be made within 24 hours.
Business Fuel Small Business Loans Approval Criteria
|Minimum monthly business turnover||$10,000|
|Minimum trading period||Trading in the same location for at least six months|
The amount you can borrow with a Business Fuel loan will depend on your company's monthly sales. Loan limits are equal to your monthly turnover in sales:
- A company averages $50,000 in sales
- The limit for a Business Fuel loan will be $50,000
When applying for a business loan with Business Fuel for less than $100,000, you will need:
- Acceptable Photo ID
- Six months of bank statements
When applying for a business loan with Business Fuel for more than $100,000, you will need to offer security, and provide evidence in your application of the collateral used to secure the loan.
How much does a Business Fuel Business Loan Cost?
Business Fuel makes calculating your total loan amount and repayments a simple process. A one-time, upfront factor fee will be applied to the loan principal and added to your total loan amount. Business Fuel only charges an upfront factor fee to its business loans:
- No application fees
- No establishment fees
- No ongoing monthly fees
- No charges for early repayments
A factor rate is represented as a multiple of the loan principal. For example, a factor rate of 1.1 will add 10% of the principal to the total amount. You can see in the table below some examples of how a factor rate may be applied to a principal amount.
|Principal Amount||Factor Rate||Total Amount|
The factor rate applied to your business loan principal will be decided by looking at:
- The amount you wish to borrow
- The term of the business loan
- The value of the collateral offered - if any - to secure the loan
- The type of business you own
- The creditworthiness and financial stability of your business
Need to compare loans using a factor rate and a percentage interest rate? You can learn more about how a factor rate works and learn how to compare business loans by using our free Factor Rate to APR converter.
Business Fuel Business Loan Cost Example:
- A borrower applies for a business loan of $50,000 over 12 months
- Business Fuel applies a factor rate of 1.3 to the principal amount
- The total loan amount is calculated at $65,000
- Regular repayments are set at $1,250 per week
- The borrower repays the loan amount in weekly instalments for the 12-month term
Want to compare business loan repayments? You can use our free business loan calculator.
Money.com.au Business Fuel Summary
Business Fuel offers same-day access to funds with a maximum amount relative to the borrowing company's monthly sales. A business making $100,000 in monthly sales could gain access to a $100,000 loan. All loans over $100,000 require security.
Funds can be used for any business purpose, and around 80 per cent of loans from Business Fuel are unsecured. Having a strong asset base can allow access to larger loan amounts.
Business Fuel has an established reputation in the Australian lending market, with over $100 million in loans funded to Australian businesses. Borrowers appear to approve of Business Fuel as a lender; half of the revenue generated by the company is through return customers.
Business Fuel has partnered with CreditorWatch to offer a free Business Credit Score service to potential borrowers, which can produce a detailed credit report without any impact on the borrower's credit score:
- Secure online application through Business Fuel
- Understand your credit score and receive a detailed business credit report
- No impact on the applicant's credit file
- Review the financial health of your business and understand your ability to secure finance
Business Fuel was a 2019 Finalist at the Australian FinTech Awards in the 'Excellence in Business Lending' category.