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    Unsecured Business Loans

    What is an Unsecured Business Loan?

    An Unsecured Business Loan offers fast and flexible finance to help your business grow. Unlike secured loans this type of loan doesn’t require collateral like property for security.

    Small business owners are attracted to unsecured business loans as they’re able to access funds without risking personal or business assets. This is because the loan is supported by the borrower’s creditworthiness, eliminating the lender’s ability to seek repayment through asset seizure. However, meeting income and credit requirements is still necessary.

    What Businesses Commonly Use Unsecured Loans?

    Unsecured loans are a great financing option for the below business operations:

    • Building & Construction
    • Manufacturing
    • Catering & Hospitality
    • Cleaning companies
    • Courier services
    • Engineering shops
    • HVAC technicians
    • Automotive
    • Removalists
    • Mining
    • Medical 
    • IT Companies
    • Professional services
    • Tradies

    What can You Use an Unsecured Business Loan For?

    Businesses use unsecured business loans for a multitude of reasons, including but not limited to:

    • Working Capital
    • Inventory
    • Cash flow
    • Staff

    The Benefits of an Unsecured Business Loan

    An Unsecured Business Loan is a quick and versatile solution for various needs, from covering gaps in cash flow to new business opportunities. Boost your working capital, invest in inventory, equipment, renovate, or hire new staff without risking your home or other personal assets.

     

    • Great for growing your business
    • No assets are required for security
    • Fast approval because there are no assets to evaluate
    • Available to smaller businesses that don’t meet banks’ usual criteria
    • Repay the loan and interest daily or weekly
    • You will have immediate ownership of anything purchased 

    How Does an Unsecured Business Loan work?

    With an Unsecured Business Loan, your business borrows the funds you need over a set term and repays the ‘principal’ (amount you borrow) plus interest and associated fees. This type of loan doesn’t require physical assets (such as property, vehicles, or inventory) as security. Instead, your lender will often look at your business’s strength and cash flow as security.

    Unsecured business loans are generally suited for smaller amounts, usually $250k or less and can be approved quickly, as less upfront information is required. However, due to the higher risks for lenders, unsecured loans often come with higher interest rates compared to secured loans. 

    Lenders will give your business a ‘credit evaluation’ to decide whether they will loan you money based on current economic conditions and their assessment of your creditworthiness. This process is put in place, as they want assurances of your ability to repay the loan, plus interest, over time. Factors they will consider include the following:

     

    • Your personal and business credit history and ability to manage finances
    • Capacity to generate revenue and how much income is expected
    • Capital including asset’s your business owns that can be sold off if you can’t repay
    • The amount you are asking to borrow
    • Higher risk for lenders usually means higher interest rates and fees 
    • How long it will take to repay the loan and how frequently you can make repayments
    • Lenders may set other requirements or conditions for the loan to be approved.

    Step-by-step Process: How To Apply for an Unsecured Business Loan

    We like to set you up for success. A little preparation before we get together will streamline the process. Don’t worry if you’re stuck on these steps before we talk. We’ll help you sort out the detail before we begin an application.

    1. Know why you need a loan

    Knowing what you’re borrowing for is one of the first questions a lender will ask. Is it to manage cash flow, fund business growth, or are you buying vehicles or equipment?

    2. Work out the loan amount

    Knowing how much you need will be straightforward if you’re buying an asset. But if you’re borrowing to cover a cash flow gap, working this out will be more involved.

    3. Consider what you can afford to repay

    The length of the loan will impact repayment amounts. Calculate what you can afford to repay each month by looking at past financials and completing cash flow forecasts.

    4. Gather essential paperwork

    Having the correct documentation ready will streamline the application process. Typically you will need to provide: proof of income, bank statements, and identification.

    5. Secure a competitive lender

    Discuss your needs with us, and we’ll source the most competitive loan from our network of 30+ lenders. We’ll negotiate the best rates and repayment terms for your situation and manage the process from application to approval, keeping you informed as we go.

    6. Gain approval and funds

    We can source a provider, help you organise your documentation, and assemble your application in as little as five business days. Once finance is approved, funds are usually paid within 24 hours.

    Why Choose Cabbage Capital as Your Finance Broker?

    Our founder and principal broker, Brin Hayden, brings over 20 years of experience in the commercial sector, focusing on financial solutions for small to medium enterprises to provide a real impact.

    “I bring a personal approach and work with you to find the best Unsecured Business Loan for your situation. Unlike banks or individual providers, we’re not limited to just one or two products. We source finance from a network of 30+ competitive lenders vying for your business. Then we negotiate the best rates and terms to fit you.

    If you’d like to capitalise on growth opportunities without having to provide collateral as security. We can tailor a loan to work around you and make a real difference. We’ll do the leg work, so you can put your energy where it’s needed most – into growing your business.”

    If you’re looking for financial solutions tailored to your needs, consider Cabbage Capital, your trusted finance broker in Melbourne.

    Brin Hayden

    Founder and principal broker

    “I bring a personal approach and work with you to find the best Unsecured Business Loan for your situation.”

    Let’s get started

    If you’d like to book a meeting to discuss your needs or start a finance application, leave your details, and we’ll get back to you within 24 hours. Alternatively, call Brin at 0418 574 655

    Areas Served

    Cabbage Capital services are available nationwide. Contact us today to apply for unsecured business loans in Melbourne, Sydney, Brisbane, Adelaide, Perth, and throughout Australia.

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