This will depend on your financial and business situation, how long you have been in business, whether you have collateral or not and the type of business finance you choose. If you are requiring a Business Loan to scale your business because of growth and opportunity than it is very easy to secure a business loan for your business through Yakka Finance.

The only time it is hard to get a business loan on most occasions is when your business is failing and not actually making money.

Non-bank lenders, including fintechs are not constrained by banking regulations, so they are able to approve more loans to small businesses. Since the loans they make are unsecured, the interest rates are normally higher than those of traditional bank loans.

The innovative technology they use simplifies the lending process. Once it has been determined that you can repay the loan, and you are approved, the funds are transferred into your account. In this situation, it’s not hard to get business finance if you meet the criteria of the non-bank lender.

This will all depend on you and your business. We secure Business Loans for as little as $10,000 for customers. We also have the ability to secure business loans up to $2,000,000. Once we get a good understanding of you and your business, we can then secure the right solution for you at the right loan amount.

You can get a business loan without collateral very easily. When you don’t offer collateral, it’s called an ‘unsecured’ loan. Even if you don’t have collateral to offer, there are still so many loan options available. The main difference is that you usually won’t be able to borrow as much and you will pay a higher interest rate for your business loan as its deemed as higher risk. For example, a typical rate for a secured business loan with the traditional banks is around 3-7% per year, while the rate for an unsecured business loan starts at around 12%. That’s 50% more interest for the unsecured loan option of the same business loan.

Certain types of loans don’t outside of business loans require use what you are purchasing as collateral. For example, with equipment finance, the item you are purchasing acts as the collateral while you are repaying the loan which is why Equipment Finance rates always stay low.

Traditional Lenders and Non-bank lenders will provide unsecured loans and don’t require collateral. At Yakka Finance we will safely and securely analyse your situation and determine our best pathway to get you approved for a loan and the loan amount without the use of any collateral.

This depends on what you mean by ‘bad credit’. If you have a bad credit history which can be a result of late payments, defaults and/or bankruptcy it will rule out the traditional bank lenders offering the lowest interest rates.

If you have bad credit, some non-bank lenders specialise in providing business loans to people with bad credit but will charge a higher interest rate due to the higher risk of your credit history. The better your credit file the better the approval.

To get a clear picture of where you stand, we can get a copy of your credit report and run you through what lenders will be available for your business loan.

No. A secured loan will require some form of collateral (property or other assets) but no money from you. An unsecured loan does not require any collateral security, so there’s no money down (deposit) required to be put to get a business loan.

This will depend on the lender we want to go with for your business loan. With traditional bank business loans, we would require more traditional information such as Financials, BAS Statements, ATO Portals and other items that we work with your accountant to obtain.

If we go down the path of a Non-Bank and Fintech business lenders, we will safely and securely access your banking transactions and/or accounting records to make a lending decision based on the Fintech lender we want to use.

In addition to assessing your bank statements, we check your credit history (without making any mark on your credit file) to make the right choice of fintech lender to use for your situation.

This will depend on the type of lender or bank we go with. Some major bank business loans where the lowest interest rates are offered can take up to 2 to 10 business days to be approved as they assess business loans in a different way to finetch lenders.

Non-Bank and Fintech lenders have streamlined the process to make it quick and simple for business owners it’s just not as cheap as a business loan with a major bank. Fintech Lenders can approve and distribute funds in your bank account the same day.

Some business loans require collateral, which can include property or other assets owned by the business or business owner. One example is business owners who use their residential property to secure business finance. An unsecured business loan does not require collateral. However, many lenders will require a personal guarantee from the borrower.

A secured loan is when a business owner uses another asset they own to secure a loan. The asset can be either a personal asset like the family home, or a business asset like a truck or piece of equipment.

The vast majority of traditional lenders, including the big banks, tend to secure loans against an asset. If you have trouble paying back the loan, then your asset may be sold by the lender. In essence it’s a way of securing new financing by using the value of what you already have. With a secured loan there is very little risk in the deal as they can get their money back by selling off your asset.

The main difference between a secured loan and an unsecured loan is whether an asset such as commercial or residential property, or other business assets are used as security against your loan.

Loans for business with security (secured)

A secured loan requires an asset to be provided as security. This may be property, inventory, accounts receivables or other assets. This security covers the business loan amount if you’re unable to pay it back.

Secured loans:

• Allow you to borrow against your assets, e.g. property, inventory, accounts receivables
• Generally involve a longer approval process, as there’s security to consider
• May require valuation assessments and additional proof and documentation of assets
• Generally offer lower interest rates and higher borrowing amounts than an unsecured loan.

Loans for business without security (unsecured)

An unsecured loan doesn’t require physical assets (such as property, vehicles or inventory) as security. Instead, your lender will often look at the strength and cash flow of your business as security.

Unsecured loans:

• Often use the strength of your cash flow as security, instead of physical assets
• Are generally for smaller business loan amounts
• May be assessed quickly, as no security is considered
• Tend to have a higher interest rate than secured loans, as they’re deemed higher risk

With most business loans, there is an option to pay off the loan early. With some lenders, you will pay the interest for the full term even if you pay the loan off early.  Other lenders will charge full interest minus a discount when the loan is paid off early. When considering the right solution for you we will make sure we place you with a lender that gives you the ability to pay off early

This will depend on several factors including your financial position, credit history, bank statements and ability to make your repayments back. At Yakka Finance we will typically look at your cash flow, profit and loss statement and balance sheet before looking at the best possible solution and lender for you (not just the easiest).

In addition, we will check your credit history to see what other debts you have and how on time you have been in making payments. Some lenders will require collateral to get a business loan, while others offer unsecured business loans that don’t require collateral.

Some lenders have minimum eligibility criteria before they will consider lending. Generally, we have secured a business loan for businesses that have only been trading for 6 months.