Best Business Loans

Compare your business loan options and choose the best for you from Savvy's range of partnered lenders today.

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, updated on September 21st, 2023       

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With so many lenders on the market when it comes to small business loans, it can be confusing to compare all your options. Learn what to look for with this handy guide.

How do I get the best business loans?

There’s a number of factors that can affect the terms you’ll get on a business loan in Australia. Understanding some of those factors – and how you can influence them – can have a massive impact on the terms you’ll be able to get on a loan for your small business. Consider the following aspects of your business loan when applying:

Credit rating

A high or low credit rating can make a huge difference to not just getting approval for a business loan, but also getting the best rates. Look after your credit rating by making sure you pay your debts on time, not letting bills go overdue and keeping credit card limits low.

Your business track record

Most lenders will examine your business and how it’s doing to assess your suitability for a loan. Keep good records for your business to show them how established you are and how your finances are going and be realistic about what sized loan your business could comfortably pay off.

Type of loan

Select a type of loan that’s best suited to your situation. If you need sporadic funds rather than a lump sum, perhaps a business line of credit would be the best financing option for your business rather than an unsecured loan – the interest might be higher, but you’re only paying interest on the money you’re using. Alternatively, if you need a greater sum of closer to $1 million or more, a secured business loan can help you reach that.


The security or collateral almost always sweetens the deal for a lender, lowering the risk and enabling them to offer some of the cheapest loans in Australia. However, you need to weigh this against the risk of losing your asset and the fact that you need an asset to offer.

The lender

When it comes to loans, not all lenders are the same. One of the most helpful things you can do to get the best business loan is to shop around and compare your options. Don’t just consider the big banks either – smaller lenders can have some of the best loan options on the market to suit your personal needs.

What is the best type of business loan for my situation?

Probably the most common options of business loan are secured and unsecured loans. Both of these are fairly traditional loans where your business borrows a lump sum of money from a financial institution and then pays it back in regular instalments.

The main difference is that with a secured loan, the business offers an asset of some kind (like a property) as security or collateral, while an unsecured loan doesn’t. As a result, a secured business loan generally offers lower rates and higher amounts, making it the best “cheap” option (with the lowest interest rates).

An unsecured loan doesn’t require collateral, making it one of the best small business loans for start-ups which don’t have many assets to offer. The trade-off is that the interest rates offered are higher compared to a secured loan, they generally need to be paid off sooner and they normally offer less money. However, they offer peace of mind that no collateral is securing the loan and provide a foot in the door for businesses that can’t otherwise meet asset requirements.

Another common financing option is a business line of credit. This is like a credit card on a whole business scale – it's an amount of money that a lender sets aside for your business to use whenever it’s needed – but you only pay interest on the money you’ve currently borrowed and repay the entirety of the amount by a set date. If your business tends to need access to a pool of funds to be used at need rather than a large lump sum, a line of credit could be the best for your situation.

There are also a number of other finance options on offer, including:

  • Business credit card – A business credit card is similar to a personal credit card, and offers similar flexibility to a business line of credit, but is a little more permanent – and with higher fees.
  • Invoice financing – A good option for a business which is currently owed a lot of money by customers. This involves selling those invoices to a third party at a reduced rate, and letting them sort out the debt.
  • Merchant cash advance – A type of loan where the lender takes a percentage of your day-to-day profits rather than a set repayment amount.
  • Bad credit business loan – This is a special type of small loan for a business with a poor credit rating. For some small businesses, this is the best and only finance option available to them.

Types of business loan

Why compare business loans through Savvy?

Frequently asked questions about getting the best business loans

Is a commercial loan a good idea?

Commercial loans are a fairly common feature of business finance – they happen every day, and normally get paid off without any trouble. They have many advantages over something like personal loan, including less risk for you as an individual (they’re specifically linked to your business). The main question to ask yourself is whether you can afford to repay what you owe – even if plans go awry and you hit some financial difficulties. You can use Savvy's business loan repayment calculator to determine how much your loan might cost you overall.

What can I do to improve my chances of getting the best business loan?

There are a few things that could help you get the best business loan from a bank or other lender. Keeping good records lets you show evidence that your business is doing well and doing everything you can to maintain a good credit rating will help. You should also be ready to do your research into the best lenders – banks aren’t the only option available, and some smaller lenders might be more willing to help.

How do I get the best business loans as first-time applicant?

Lenders want to be confident your business can make ends meet and pay off the loan before they’ll loan you money, so it’s a good idea to wait until your business is looking good on paper before applying for a small business loan. If you don’t have the option of waiting, you could offer some collateral or find someone to act as a guarantor (someone who’ll commit to picking up the bill if you can’t make your loan repayments). Be careful, though – you don’t want to lose your house or put a relative in debt with a bad financial decision.

Are there any limits to how I can use my business loan funds?

Not really – provided the loan is used for business purposes, you can distribute the approved funds across your business however you wish. You might be looking to pay for outstanding debts, such as a tax debt loan, cover your employees' wages, fit out your shop front, cover the cost of a marketing campaign, purchase inventory for your microbrewery or vineyard and everything in between.

What’s the best small business loan for start-ups?

Although getting a loan as a start-up isn’t always an easy process, one of the better options available is probably an unsecured loan. Although they’re not the lowest interest business loans on the market, the application process is generally easier and they don’t require an asset as collateral – which is something many startups lack.

If my business trades across Australia, will I still be able to access financing?

Yes – you won’t need to apply for a geocentric business loan, as lenders offer 100% online financing for businesses across Australia. This means it doesn’t matter whether you’re looking for a loan in Brisbane or applying for finance in Adelaide: you can still access the same product provided you can meet the various eligibility criteria your lender sets in place.

What are the best finance options for purchasing business equipment?

You can apply for equipment finance instead of an unsecured business loan if you're looking to purchase machinery or any other equipment. Unlike a basic business loan, these use the equipment you’re purchasing as collateral for the loan, which can potentially open you up to lower interest rates and longer borrowing terms. This is especially useful if you’re looking to finance a purchase for your trade business and wish to pay your loan off over a longer period.

How quickly can I get approved for a business loan?

Depending on the type of finance you apply for and your chosen lender, you can potentially be approved and have your funds transferred within just two hours of submitting your application with a quick business loan. This can give business owners greater peace of mind that the funds they need will be available for them to access as soon as the same day they apply.   

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Still looking for the right finance for your business?

Explore a range of business loan options suitable to your financing needs and apply online through Savvy today.