Unsecured Business Loans up to $250,000

NEW LOANS - REFINANCING - DEBT CONSOLIDATION

Unsecured loans are those that do not require items of property, vehicles or equipment to secure them. Unsecured loans are usually for existing businesses (six or more months in business).

We can help you find a new loan, or refinance an existing unsecured loan.

We have a range of lenders for unsecured business finance, up to $250,000. Each lender has different criteria, information needed to complete your loan application and different products. Rates also vary significantly between lenders.

We will ask you targeted questions to identify which lender you meet the criteria for then work with you to provide the correct application documentation. When you meet the criteria of more than one unsecured business lender, we will first try the lender with the lowest rates and/or the longest loan terms.

You will need to have good credit - a credit score of at least 350 is required. How much you can borrow will depend on your time in business, industry, other borrowing, annual revenue and profitability, and whether you are up to date with your GST and PAYE payments.

Buying a business or a franchise?

There are very few lenders who provide unsecured loans for business purchases. To be considered, you must be contributing at least 25% of the purchase price and the business you are buying must be profitable. It helps if you are a home owner and have another source of income that could service the loan, such as a spouse/partner who earns PAYE income.

Starting a business?

Most business lenders do not provide unsecured loans to start a business. If you own property and have a decent amount of equity in it, we may be able to help you get a second mortgage with six months of capitalised interest. You will need to have a very solid business plan.

Unsecured loans up to $150,000

These loans are usually assessed using only your business bank transactions, credit checks and a small amount of financial information about your business. They will often limit the amount you can borrow to some kind of factor of your revenue (eg 1.5 times average monthly revenue).

What lenders are looking for:

• Good conduct in your bank accounts, eg no bounced payments, especially for any other borrowing you have

• Clean credit for the directors and the business, or defaults are paid and/or explained

• GST and PAYE up to date, or a payment arrangement in place (some lenders will fund IRD arrears)

• Trading for a minimum of 6 months

• Some lenders might want to see your management accounts or accounts for the last tax year

Unsecured loans over $150,000

These loans require more documentation to support them. As well as the criteria for unsecured loans under $150,000, you may need to provide:

• Current management accounts (ie your profit and loss and balance sheet as of today)

• Profit and loss statement for the last financial year and sometimes the year before

• Documentation to prove you have an IRD of any payment arrangement in place if you have arrears

• You may need to supply accounts receivable and accounts payable reports

Common uses for an unsecured business loan

• Working capital, eg to purchase extra stock

• Fund a marketing campaign

• Cashflow funding when you don’t qualify for invoice finance

• Refinancing of other business lending

• Debt consolidation

• Pay your fixed costs during a quiet part of the year

• Purchase equipment that can’t be used as security

• Director/shareholder buyouts

If you do not qualify for an unsecured business loan you may want to consider our secured loans or invoice finance.

 FAQ’S