Unsecured business loans
$5,000 to $250,000 as standard, up to $500,000 for the right profile, no property goes up as collateral. That doesn’t mean nothing does, and we’ll show you exactly what does before you sign.
Unsecured business loans in Australia typically run from $5,000 up to $250,000, with some lenders (depending on your profile and bank statement conduct), stretching to $500,000 on basic information alone. No property goes up as collateral. That doesn’t mean nothing does.
Most contracts still carry a personal guarantee, and many carry a caveat clause over your personal property, even though nothing is registered against it upfront. Understanding that distinction, before you sign, is what actually protects you. If you’re a genuine startup without trading history yet, see our startup business loans guide for how that changes what’s realistic.
Does “no security” actually mean no security?
No. Most unsecured business loan contracts still carry a personal guarantee, and many carry a caveat clause over your personal property, even though nothing is registered against it upfront.
- 01Lots of unsecured business loan providers build personal guarantees and caveat clauses into the contract itself. It rarely shows up as “security” on the label, it shows up in the covenants.
- 02If you default, or breach a covenant listed in the loan agreement, the lender can place a charge on your personal property to make sure they can work with you to recover their money.
- 03Read the covenants, not just the headline “unsecured” claim, that’s where the real terms of the deal actually sit.
How much can you borrow, and what does it cost?
Most unsecured facilities sit in the $5,000-$250,000 band, with terms currently available up to five years across the unsecured lenders we deal with. For the right profile (strong running balance, consistent cash flow, minimal or no dishonoured payments), some lenders will extend to $500,000 on bank statements and basic information alone. Our business loan calculator lets you model repayments across different amounts and terms.
Cost is the trade-off for speed and simplicity, and for most borrowers unsecured pricing does sit above a secured facility or a bank loan. But that’s not universal: for genuinely strong business profiles, unsecured rates can land close to, or occasionally better than, bank pricing. Your bank statement conduct decides which end of that range you land on.
Around 20 lenders now offer this style of product. Knowing where your profile fits is the difference between a second approval and a second decline sitting on your credit file.
What do lenders actually check, if not an asset?
Bank statement conduct is the main input, and it’s more forensic than most business owners expect. We use bank statement analysis technology to see what a lender’s own credit model is likely to flag before you apply, but the rule of thumb a lender is working from is simple: a strong running balance, consistent cash flow, and minimal to no dishonoured payments.
| Running balance | Shows whether the business is building a buffer or drawing one down |
| Cash flow | Irregular deposits read as risk even if the annual total is fine |
| Dishonours | Each one is a direct signal to the credit model, not a minor note |
| Time trading | Six to twelve-plus months is the usual floor most lenders work from |
| Existing debt | Including any ATO payment plan, see when this isn’t the right call, below |
Can an unsecured loan be a line of credit or an overdraft?
Yes. Revolving unsecured facilities exist alongside the term-loan style product. The trade-off is that these lenders will often build in the same caveat clauses, plus stricter covenants, particularly around taking on further working capital finance without the lender’s approval. Read that clause specifically before you sign if you think you might need a second facility down the track.
Two things people get wrong about unsecured lending
Can I pay it out early?
Yes, for most lenders now. Early payout benefits are standard across the current unsecured panel, and some lenders charge no payout penalty at all. Worth confirming this term specifically before you sign, since it varies by lender.
I already have one or two unsecured loans, what now?
Consolidate, and stretch the repayments over a longer term where possible. We’ve done this for clients a number of times: rolling multiple unsecured facilities into one, longer-term structure that lowers the combined repayment.
When an unsecured loan isn’t the right call
If you have an ATO debt on your file, a major bank won’t approve you for finance of any kind while it’s there, full stop. In that specific situation, some unsecured products end up cheaper than an ATO payment plan, and clearing that debt also improves your position for every application after it. That’s a real case where “unsecured and more expensive” isn’t the right frame.
More broadly, unsecured lending is best treated as a transitional product, not a permanent one. The aim, over time, is to build the trading history and bank statement conduct that gets you to a stronger lender (and eventually back to bank pricing), rather than staying on unsecured facilities indefinitely. If your business already qualifies for bank or near-bank terms, we’ll tell you that, not push an unsecured product because it settles faster.
Compare this against
Not sure an unsecured loan is the right shape?
Comfortable offering security in exchange for a better rate?
Secured term loans typically price lower once you’re willing to offer an asset or property.
See Term loans →High card sales and want funding assessed against takings?
An MCA prices and repays directly against your card sales.
See Merchant cash advances →Want a revolving facility instead of a lump sum?
A line of credit lets you draw, repay and redraw rather than taking one fixed amount.
See Lines of credit →Want the deeper, side-by-side breakdown? Read Unsecured vs secured business loan →
Already knocked back once?
Talk to us before you apply again yourself. There are around 20 lenders offering this style of product, and minimising the number of hard enquiries on your file matters to how the next lender reads your application.
Want the numbers first? Try the business loan calculator →
Run a transport or logistics business? See how finance bridges 30-90 day terms →
Run a trades or construction business? See how finance differs by construction type →
New to working with a broker? See how a business loan broker works →
Give us the basics below and Andrew will come back with the two or three offers actually worth your time, usually within a business day.