Unsecured Business Loans

A great way for small business owners to borrow money without providing collateral

Unsecured business loans are loans provided for a fixed period of time that are not backed by property, equipment or another form of collateral. Because they are not secured by collateral, unsecured business loans are supported in another way, often by business cash flows in combination with the borrower’s creditworthiness.


  • A set payment structure
  • Limited paperwork
  • You can get an unsecured loan even if you have bad credit
  • Suitable for a wide range of purposes


  • Higher rates than longer-term loans
  • Daily or weekly payments can prove difficult for some businesses
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How Unsecured Business Loans work?

Most unsecured business loans are short-term. They are short-term due to the fact that they carry more risk to the lenders. Short-term unsecured loans often come with factor rates instead of interest rates. A factor rate is a number that, when multiplied by your total loan amount, tells you how much you need to pay back the lender. It’s expressed as a figure such as 1.15. So, if your loan is for $100,000 and your factor rate is 1.15, you need to pay $115,000. In addition, short-term unsecured business loans often have either weekly or daily repayments. Breaking repayments down into smaller amounts can make it easier to manage your cash flow. Because of the need for daily or weekly repayments, short-term unsecured business loans are best suited to businesses that have a stable and regular revenue. Here is an example of how an unsecured loan could work for you:

An unsecured loan example

What documents will I need?

For loans less than $50,000

  • ID such as a driver’s license
  • Your ABN
  • Three months of bank statements

For loans greater than $50,000

  • The same as for loans less than $50,000 plus:
  • A P&L (profit & loss) statement
  • List of assets and liabilities


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