Business term loans
$10,000 up to $5,000,000+ for the right borrower. Most facilities under $250,000 need no property security, funded in 24-48 hours.
A business term loan is a lump sum you borrow and repay in fixed instalments over a set period, the most straightforward form of business finance there is, and the one most people mean when they say “business loan.” Most facilities under $250,000 don’t require property security, and funding usually lands in 24-48 hours once the paperwork is in.
The part that trips people up isn’t the product. It’s working out which of the 80-plus non-bank lenders on the market actually wants to lend to a borrower and a business that look like yours, and applying to the wrong ones first can make that harder, not easier.
Do you need property security for a business term loan?
Depends on the number, and it’s less black-and-white than most people expect. Under $250,000, security is usually a director’s guarantee (your signature, not your house), though the better-priced lenders on our panel will often still want a general security agreement (a claim over business assets, not personal property) alongside it. Some lenders will lend right up near that $250,000 mark with no property backing at all; you pay for that flexibility in the rate. See our unsecured business loans page for the full picture on what “no security” really covers.
Above $250,000, property security becomes more common, but “security” doesn’t always mean a mortgage. Some non-bank lenders will accept a caveat over property (a registered interest that sits behind your existing mortgage rather than a full second mortgage), instead of taking physical security upfront. Which option applies to you depends on the lender, the amount, and how the rest of the business stacks up, so this is worth a real conversation rather than an assumption either way.
Illustrative only, not a quote. Your actual position depends on the lender, the amount and how the rest of the business stacks up.
How much can you borrow, and for how long?
Business term loans on our panel typically run from $10,000 to $500,000, with terms and repayment structures that vary by lender and by how long you’ve been trading. For the right borrower, non-bank lenders will go well beyond that (up to $5,000,000 and, in the right circumstances, further still), though facilities at that size usually bring property security or a caveat into the conversation. The table below is a snapshot, not a quote, your actual range depends on revenue, trading history and the lender’s own appetite that month.
| Loan amount | $10,000-$500,000 typical; up to $5,000,000+ for the right borrower |
| Security | Director’s guarantee under $250,000 (some lenders also want a GSA); property security or a caveat becomes more common above $250,000, more so past $1,000,000 |
| Funding speed | 24-48 hours once documents are in for smaller facilities; larger or secured facilities take longer |
| Repayments | Fixed, set at settlement |
Why work with a broker instead of applying to a bank directly?
Because your bank can only sell you their own product, and if you don’t fit it, that’s the end of the conversation. A broker’s job is to know which of the 80-plus lenders on the panel actually wants to lend to a borrower and a business that look like yours, and, just as importantly, which ones to avoid applying to first. (More on how a business loan broker actually works.)
Lenders aren’t assessing a generic application. They’re assessing two things together: you as the borrower (credit history, experience, what you’re prepared to guarantee), and the business on paper, trading history, revenue, industry, cash flow. A lender that loves one half and is lukewarm on the other still says no, and matching both halves to the right lender’s actual appetite is most of what a broker is doing behind the scenes.
That second part matters more than most business owners expect. A lot of clients come to us believing they’re more “bankable” than they actually are, and go shopping across two or three major banks before calling a broker. Each of those applications shows up on their credit file, under MoneySmart’s own guidance, “each application for credit is noted on your credit report” and “too many applications in a short time can lower your credit score.” By the time they do call, the credit score damage from three declined bank applications has taken some second-tier lenders off the table entirely, lenders who might have said yes to that same borrower and business the first time round.
Run the numbers the other way and it’s a smaller market than people assume, which is exactly why it’s easy to get wrong on your own. Ten years ago there were maybe three lenders outside the major banks writing unsecured term loans. Today there’s closer to twenty, each with its own credit appetite, pricing tiers and documentation quirks, and no directory that ranks them by “who’ll actually say yes to a business like mine.” Nobody’s memorising twenty lender policies in their spare time; that’s the job a broker exists to do instead.
Non-bank lenders writing unsecured term loans, ten years ago versus today. Nobody’s tracking that many policies solo, that’s the job a broker exists to do.
Two things people get wrong about term loans
Shotgunning applications hurts you
Applying to two or three major banks “just to see” feels safe. Each application shows up on your credit file, and by the time a broker gets involved, the credit damage from those declines can rule out second-tier lenders who might otherwise have said yes.
Banks aren’t always cheaper
Bank term loans aren’t automatically cheaper than non-bank ones. In a meaningful number of cases a non-bank lender’s pricing works out lower once fees are accounted for, and it’s often the easier lender to grow with as your facility needs scale.
What do business term loan interest rates look like?
Rates vary by lender, loan amount, security offered and trading history, so there’s no single number that applies across the panel. This is one of the first things we clarify on a call, a real figure for your borrower and business profile, not a marketing rate that only applies to the strongest applicants. Our business loan calculator lets you model repayments at different rates and terms before you call.
Ecommerce Loans is a finance broker, not a lender. Rates and figures shown are indicative only and subject to individual lender assessment.
When is a business term loan not the right call?
If your cash flow is genuinely irregular (heavy in some months, thin in others), a fixed repayment can be the wrong shape of product, and a line of credit or revenue-based facility is usually a better fit. A term loan is also the wrong move if you’re borrowing to cover an ongoing shortfall rather than a specific, one-off purpose; fixed debt on top of a cash flow problem tends to make the problem worse, not better.
If either of those sounds like your situation, say so on the call. Redirecting you to the right product costs us nothing and saves you a facility that doesn’t fit.
Compare this against
Not sure a term loan is the right shape?
Need to draw funds as you go, not all at once?
A revolving facility lets you draw, repay and redraw, rather than taking one lump sum upfront.
See Lines of credit →Don’t want to put up property security?
Most unsecured facilities are assessed on cash flow and trading history instead.
See Unsecured business loans →Funding one specific piece of equipment or a vehicle?
Asset finance is secured against the thing you’re buying, which usually prices better than general-purpose funding.
See Asset finance →Want the deeper, side-by-side breakdown? Read Term loan vs line of credit →
How do you actually get a business term loan?
Tell us the basics (what the funding is for, roughly how much, and your ABN), and we take it to the panel without a formal application or a credit check at that stage. Once a lender indicates interest, we walk you through what they’ll actually want to see before anything goes to a formal application.
Want the numbers first? Try the business loan calculator →
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.