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Apply todayAn unsecured business loan is a type of business finance that allows you to borrow funds without providing any business or personal assets as security (collateral) for the loan. Instead, unsecured finance relies on the trading position of your business — including your trading history, plus current and projected cash flow.
Having no security directly backing the debt increases the risk to the lender, making it harder for them to recoup losses if you can't repay the loan. As a result, unsecured business loan rates are higher than those on secured business loans (which lower the lender’s risk due to the collateral provided). Unsecured business loans also have shorter loan terms.
Unsecured loans are particularly suited to small businesses who need accessible funding, but lack assets to offer as security for their finance. The vast majority of businesses in Australia (around 98%) are small businesses and more than 90% of loan requests are made by SMEs, according to Money.com.au data. In 2025 there was a significant uptick in business lending to SMEs, according to unsecured business lender, OnDeck, as lower interest rates bring borrowing costs down for businesses. The construction and trades sector continues to be a big driver of unsecured borrowing. Business cashflow remains the main driver behind a lot of funding requirements.
Construction & Trades
14.17%
Professional & Business Services
10.47%
Personal Services
5.83%
Hospitality & Food
5.73%
Automotive & Transport
4.71%
Source: Money.com.au borrower data
For industries that experience seasonality or cyclical business, unsecured finance helps smooth out those bumpy roads in cash flow throughout the course of a trading year.
This is particularly common for businesses with tax debt. An unsecured debt consolidation business loan allows you to combine multiple debts under one loan making it simpler and often cheaper to service.
Unsecured business finance can be suitable for large, one-off inventory purchases. For example, if you’re fitting out and stocking a new premises. The funds can then be prepaid gradually in line with sales.
For businesses who don’t want their operations to be derailed by potential cashflow troughs or unforeseen costs down the track, unsecured finance (through a line of credit) can act as a funding backstop.
Phil Collard, Money.com.au Business Finance Broker
"Building and trade businesses requiring cashflow is a pretty common use case for unsecured finance becuase of the end of year and January shutdown across most builders, which then cascades down to subcontractors. These businesses are potentially going up to eight weeks without being paid, but they still need to run their business and cover overheads. That’s when a short-term loan or a line of credit sitting in the background can be incredibly valuable."
Phil Collard, Money.com.au Business Finance Broker
The average unsecured loan amount requested by businesses for working capital is $102,094, according to Money.com.au's analysis of thousands of borrowers who came to us looking for a loan.
Interest rates on unsecured business loans start from 12.60% p.a. based on the lenders in Money.com.au’s panel as at April 2026. But unsecured rates can be much higher than this depending on the business applying for the loan and its financial position. Rates are also generally higher on unsecured business loans versus secured loans to offset the lender’s risk of providing finance without collateral. Below are the main factors that impact your business’s rate.
If you've got asset backing (so if the director of the business owns property in their individual names or jointly with a spouse) that's viewed favourably.
Although there's no security required, being asset backed could still mean a better interest rate with some lenders. If you’re not asset backed you can still generally get the funding, but potentially at a higher cost.
Your time in business has a big impact on unsecured business loan rates. Most lenders would want to see you have been in business and GST-registered for at least 12 months for you to qualify for their best rate. Some lenders have an even higher hurdle (e.g. 3+ years trading) for their best rates.
Having manageable debt obligations elsewhere can help you secure a lower rate on your unsecured finance. Tax debt is probably the big one here. Lenders will want to make sure that even though you may have a tax debt and be on a payment plan, you are contributing to that tax obligation consistently.
If you're applying for an unsecured debt consolidation business loan, existing debt will be viewed differently, as the loan you're applying for is not additional debt for your business.
Lenders have tools to be able to quickly skim through a set of bank statements and grade a customer accordingly and tier them into certain pricing buckets. This covers things like payment dishonours, being regularly overdrawn, erratic spending and large unaccounted for cash withdrawals.
In some cases, reducing your loan term means you may get a lower rate. The reason being, a shorter term reduces risk for the lender. But the drawback is you won’t necessarily feel the benefit of a lower rate as you will have higher repayments due to the shorter repayment schedule. Dedication on your loan term is a balancing act between lowering the finance costs (interest and fees) versus the cashflow impact of a more aggressive repayment term.
Business finance brokers often have some wiggle room with lenders to negotiate pricing. This is on a case-by-case basis, but if we can present a strong enough case for the customer, then lenders are normally happy to negotiate on the rate.
TIP: Some lenders may display a ‘factor rate’ instead of a traditional annual percentage rate (APR) on unsecured business loans with a short term. A factor rate is expressed as a multiple of the loan — for example, 1.15 times the loan balance.
To give you an idea of the current rates on unsecured business loans, we have rounded up the offers from a selection of prominent lenders.
Lender | Great Southern Bank |
|---|---|
Unsecured finance rates from | 9.95% p.a. - 19.95% p.a. |
Loan amounts | $20,000 - $50,000 |
Lender | ANZ |
Unsecured finance rates from | 12.24% p.a. |
Loan amounts | $10,000 - $200,000 |
Lender | CommBank |
Unsecured finance rates from | 12.34% p.a. |
Loan amounts | Up to $250,000 |
Lender | NAB |
Unsecured finance rates from | 12.95% p.a. |
Loan amounts | $5,000 - $250,000 |
Lender | Liberty |
Unsecured finance rates from | 14.20% p.a. |
Loan amounts | Up to $2m |
Lender | Dynamoney |
Unsecured finance rates from | 14.40% p.a. |
Loan amounts | $5,000 - $500,000 |
Lender | Lumi |
Unsecured finance rates from | 15.50% p.a. |
Loan amounts | $5,000 - $750,000 |
Lender | Moula |
Unsecured finance rates from | 15.99% p.a. - 35.99% p.a. |
Loan amounts | $10,000 - $500,000 |
| Lender | Unsecured finance rates from | Loan amounts |
|---|---|---|
Great Southern Bank | 9.95% p.a. - 19.95% p.a. | $20,000 - $50,000 |
ANZ | 12.24% p.a. | $10,000 - $200,000 |
CommBank | 12.34% p.a. | Up to $250,000 |
NAB | 12.95% p.a. | $5,000 - $250,000 |
Liberty | 14.20% p.a. | Up to $2m |
Dynamoney | 14.40% p.a. | $5,000 - $500,000 |
Lumi | 15.50% p.a. | $5,000 - $750,000 |
Moula | 15.99% p.a. - 35.99% p.a. | $10,000 - $500,000 |
See your estimated unsecured business loan repayments per week, fortnight or month.
An unsecured business loan is structured similarly to a secured business loan, except the lender doesn’t have to appraise any collateral or register any interest on the Personal Property Securities Register (PPSR) until you pay off the loan.
Aside from that, it's much the same as any business loan. You’ll borrow a lump sum from a lender, which you’ll repay with interest through scheduled repayments over a fixed period (called your loan term). Typically, repayments will be daily or weekly to fit in with your business cash flow.
Lenders generally require a personal guarantee from a business director. This makes you or any director(s) personally liable for the debt. If your business can’t repay the loan, you’ll have to pay it back.
Pros
Cons
A business line of credit gives you access to a specific amount of funds whenever you need (up to your credit limit). You can use part or all of the funds, pay it back and use it again (think of it as an open-ended loan). You’ll only pay interest on the amount you withdraw, not the entire credit limit. Some lenders advertise this as a business overdraft but it's the same thing generally.
Pros
Cons
You can use a business credit card to access unsecured funds up to an agreed limit. There’s usually an interest-free period when no interest is charged on purchases if you pay your closing balance in full each month. You must repay the minimum balance each month to continue accessing that limit.
Pros
Cons
There are also a number of alternative unsecured finance options offered by specialist lenders.
These include:
Generally, the minimum eligibility requirements for an unsecured business loan in Australia include:
Being a homeowner can make getting an unsecured business loan easier (or it may be a requirement depending on the lender). It can also mean being able to borrow more. Most Money.com.au business borrowers (75%) are homeowners and on average they request to borrow around 64% more than non-home owners with an unsecured loan.
Fi Ahlstrom, Commercial Finance Broker
"A client running a two-year-old business in the marketing sector needed unsecured funding to consolidate an overdraft and high-interest credit card debt, plus boost cash flow to help with some seasonality.
The key challenge for the business in accessing finance had been an existing $80,000 ATO payment plan, an old paid credit default and its relatively short trading history. We helped the client finesse their application and approached a specialist non-bank lender from our panel known for greater flexibility. Within days of the clients’ initial contact with us, we secured unconditional approval for a $100,000 business loan.
The outcome meant the client was able to consolidate their highest-cost debts, improve cash flow and now has a clear pathway to access additional funding once their tax position improves."
Fi Ahlstrom, Commercial Finance Broker
Lenders will review applications for an unsecured loan based on your business’ monthly revenue and the intended use for the loan. Each lender will have its own approval criteria and the process may be different depending on the loan amount (e.g. a director guarantee may be required).
You can generally apply online with a bank or non-bank lender, including those who provide loans designed specifically for small businesses. The approval process will be fairly simple. You’ll need to provide:
If you can’t provide standard business documents with your application, you could consider a low doc business loan.
Your lender will require additional documentation to assess your loan application, including:
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The most common reasons businesses apply for unsecured financing is to provide working capital to smooth over cash flow, according to Money borrower data. But it can be used for more or less any genuine business purpose, including:
Here are some of the main lenders offering unsecured business loans in Australia:
The standard fees you may find on an unsecured business loan include:
This is based an analysis of selected lenders by Money.com.au. Fees can significantly impact your borrowing costs, so consider negotiating with your lender (and broker) to reduce them.
A collateral is an asset or something of value owned by your business that can be used as security on a loan. It can include company vehicles, equipment, and inventory or be a personal asset such as your home or any other residential property. Unsecured business loans do not require collateral, which is why they are referred to as ‘unsecured’.
A personal guarantee is a legal commitment (as a company director or including a group of directors) to cover any outstanding loan amounts should you default or fail to meet your repayment obligations. Personal guarantees are unsecured, which means they aren’t tied to specific assets you own. They represent a legal obligation to repay an agreed amount. There are several types of personal guarantees:
No, you generally won’t need a deposit to get an unsecured business loan if your business financials show you can comfortably service the loan. A deposit is essentially a type of upfront collateral that can help reduce your monthly repayments and potentially help you get a better interest rate.
Yes, most lenders in Australia will allow you to repay an unsecured business loan early. Most lenders analysed by Money.com.au do not charge early payout fees or break costs. But when in doubt, it’s best to check with the specific lender before you repay your finance early.
Yes, you can still get an unsecured business loan if you have impaired credit, although some lenders may not provide finance if you’ve had a prior or recent bankruptcy. Consider applying for a bad credit business loan via a specialist lender, but keep in mind that higher interest rates apply.
If you default on an unsecured business loan, the lender will generally proceed with a debt collection, and a default may be recorded on your credit report. According to Equifax, payment defaults can stay on your credit file for up to five years. This may make it more difficult to get approved for future loans.
Yes, it’s typically faster to get approved for an unsecured business loan versus a secured one. The simple reason for this is with an unsecured loan the lender does not need to factor in an asset into their approval criteria. Instead your loan is approved based on your business financials and credit history.
An unsecured business loan may be more suitable in the following scenarios:
However, if you are purchasing a big-ticket asset, such as a vehicle, this is when a secured loan (chattel mortgage) will likely be more appropriate.
""Phil Collard made financing my chattel mortgage effortless — knowledgeable, responsive, and genuinely helpful throughout. Highly recommend his expertise for anyone needing finance guidance!""
"Jane Lim was absolutely amazing to work with. I reached out to her last week, told her what we were looking for, she found us a great deal, and settlement happened within 7 days of first dealing with her. Super smooth process throughout, and faster than other brokers. Jane is the best business broker I've worked with. Thanks Jane & money.com.au. Highly recommend."
"Phil from money is experienced and helpful. He assisted me navigate making application for unsecured business loan promptly and without fuss. So 5 stars from me. "
"Jane is a very professional broker I have ever known. She did an excellent job and helped me a lot. Compare many jobs by other brokers done, I highly recommend Jane!"
"Fi Ahlstrom did in 48 hours what most brokers take weeks to do... I recently arranged business funding through Money.com.au and worked with Fi Ahlstrom, and I could not recommend her more highly. Fi knew her products inside out across multiple lenders and quickly picked the right one for my situation rather than pushing a one size fits all option. She was incredibly efficient, and I had funds drawn down within 48 hours of my initial enquiry, which is remarkable. She explained everything clearly, answered every question without any jargon and made what could have been a stressful process feel completely straightforward. Her communication was excellent throughout and I always knew exactly where things stood. If you need business finance, ask for Fi. Genuinely first class service and I will absolutely be back for any future funding needs."
"Very prompt service and helpful all the way through "
"Phil was amazing to deal with, knowledgeable, professional whilst also caring / listening to any questions. Really happy with the process. I would highly recommend him. "
"Jane was great. Communication was 1st class and finiance with quick. From what I know I received the best option for finance for my circumstances."
"The representative who assisted me whose name was Joseph was an absolute professional and pleasure to deal with. Will be recommending to future colleagues"
"I am really happy with the service I received from Fi, she kept in contact advised what was needed and made it all really easy. No fuss, no stress. Would definitely contact them again if I require more finance."
"Extremely informative and professional team. I was dealing with Fi, she was very helpful and straight to the point which is what all business owners look for when applying for financial services. The entire process was streamlined and I had received the needful within only 2 weeks. Highly recommended to anyone! "
"Fi was amazing, making everything really easy and simple. "
"Great service, and fast. The funds went into my account within 24hrs! Thanks Phil."
"Phil is fantastic, he was quick, professional and responsive at every step. His experience is evident and frankly the best iv'e dealt with. I'd recommend Money.com.au and Phil to anyone looking for finance."
"Jane Lim was great in helping me find finance. The process was quick and easy. Jane was informative and kept me in the loop through the whole process. From application to approval, and funds in my bank, was only a matter of days."
"When everyone else said it was too hard, Phil said give me the details and let's get this done. Best believe, it was done within 24 hours. I am am so thankful he got the loan I wanted for my business asset which will help us elevate and grow. We can't thank you enough Phil. "
"So helpful! Saved me a bunch of time and money. Thankyou for your assistance and efficiency."
"Fi was positive, prompt, clear and explained the process in a way I could understand when I went to her needing a business loan. She made the entire process simple and navigated things in a way I couldn't. I would use her services again in a heartbeat. Thank you Fi!"
"I worked with Fi Ahlstrom, and she was phenomenal in assisting us with securing a $50k loan for our small business at a competitive interest rate. Her support, professionalism, and clear communication made the entire process smooth and efficient."
"I worked with Jane Lim at Money.com.au and I can honestly say that she went over and above for our company and for me personally. We had a very challenging process to refinance a loan and this created a lot of stress. Jane sought out an appropriate lender and was always upfront with us around what we could get and what was required. She was highly responsive and always came back to us straight away. I would recommend contacting Jane should you need any assistance in this area and would very happily speak to her performance should anybody contact me directly."
The information on this page is general in nature and has been prepared without considering your objectives, financial situation or needs. You should consider whether the information provided and the nature of any loan product is suitable for you and seek independent financial advice if necessary.
We are not providing you with a recommendation or suggestion about a particular product. You should read the relevant disclosure information from the lender before deciding whether to apply for or continue to use a particular product.
For offers from Money.com.au lending partners, we will match you with lenders and rates based on the information you provide us. This won't affect your credit score. We do not compare all business loan providers in the market and can't guarantee rates from a specific lender.
If you get a business loan from one of our lending partners as a result of visiting this page, we may earn a commission.
The products displayed in our business loan comparison tables are those available from Money.com.au’s lending partners that match the loan criteria selected at the top of the table. The comparison does not cover all lenders available in the market, nor does it cover all products available from those providers shown. The comparison does not include all product features, costs and eligibility criteria that may be relevant to you.
Product information, such as interest rates, fees and charges, is subject to change without notice. Please check current product details with one of our business lending specialists or directly with the lender before proceeding.
Users can easily change the sort order and apply product filters to our product comparison tables based on what they need. However, when you first arrive on a page, a default loan amount and purpose is selected and business loans are automatically sorted by:
The order of the products in our business loan comparison tables is not influenced by any commercial arrangements.
If you get a business loan as a result of visiting this page and/or dealing with a Money.com.au business lending specialist, we may earn a commission from the lender. Read more about how we make money.
Money.com.au has strict rules and policies in place that ensure we can provide accurate and reliable information to consumers and businesses about financial products, without it being influenced by our commercial arrangements.
