01
Repayment frequency matters. Daily or weekly repayments feel very different from monthly ones.
Business loan
A fixed amount for a defined purpose.
A business loan provides a set amount up front, repaid through scheduled repayments over an agreed term. It tends to suit a purpose with a known cost, such as equipment, a fit-out or an expansion.
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In short
Updated
What is a business loan?
A business loan is a fixed amount of funding provided up front and repaid through scheduled repayments over an agreed term. Australian business loans can be unsecured, usually sized against turnover and trading history, or secured against an asset, which may make larger amounts or longer terms available.
How it works
Business loan, explained.
A business loan provides a set amount up front, repaid through scheduled repayments over an agreed term. Term length, repayment frequency and whether security is required all vary between lenders and products.
Unsecured business loans are usually sized against turnover and trading history. Larger amounts or longer terms may require security.
Often considered when
Where it tends to come up.
- There is a defined purpose with a known cost, such as equipment, a fit-out or a one-off purchase
- The business prefers predictable repayments
- An expansion plan has a clear budget
What lenders commonly look at
- 01Monthly turnover and how consistent it is
- 02Time trading under the current ABN
- 03Business bank account conduct, including dishonours
- 04Existing facilities and their repayments
- 05Tax position with the ATO
- 06Industry
Each lender weighs these differently, and criteria change over time.
Worth weighing
Before you apply.
02
Early repayment may or may not reduce the total cost. Check the terms.
03
Borrowing more than the purpose needs adds cost without adding value.
General information only. It does not take your circumstances into account and is not a recommendation, offer or approval. Funding is subject to lender assessment, eligibility and terms.
Answers
Business loan questions
What is the difference between a secured and an unsecured business loan?
An unsecured business loan is not backed by a specific asset and is usually sized against turnover and trading history. A secured loan is backed by an asset such as property. Security can make larger amounts or longer terms available, but the asset is at risk if repayments are not met.
How often are business loan repayments made?
It depends on the lender and product. Some business loans have daily or weekly repayments; others are monthly. Repayment frequency changes how a loan sits in cash flow, so compare it alongside the total cost.
Can a business loan be repaid early?
Terms vary. Early repayment may or may not reduce the total cost, and some loans charge early repayment fees. Check the terms before signing.
How does Tennanova help with a business loan?
Tennanova's Funding Check shows whether a business loan is among the funding structures worth exploring for your business, based on your answers. It involves no credit enquiry and is general information, not an offer or approval. Tennanova is not a lender and does not provide credit.
Funding Check
Know what may fit before you apply.
Tell us about the business. We'll show you the funding structures that may be worth a closer look, then you decide whether to go further.