Question 1

What is an unsecured business loan?

Accepted Answer

An unsecured business loan is a form of business finance that does not require you to pledge a specific asset (such as property or equipment) as collateral. The lender assesses the creditworthiness of your business based on trading history, revenue, cash flow, and credit profile. Because the lender takes on more risk without a tangible asset to recover, unsecured business loans typically carry higher interest rates than secured equivalents, but they're faster to arrange and don't put personal property at risk.

Question 2

How do I qualify for a small business loan in Australia?

Accepted Answer

Most lenders on our panel look for a minimum of 6-12 months of trading history, an active ABN, and consistent revenue. The stronger your business cash flow and credit history, the more competitive the rates available. Start-ups with under 6 months of history are generally outside standard lending criteria, though some specialist lenders consider shorter trading periods. ClariFi will be upfront about what's realistic for your business before you apply.

Question 3

How much does an unsecured business loan cost?

Accepted Answer

Unsecured business loan rates in Australia typically range from 8% p.a. to 30% p.a. depending on the lender, loan term, and your business's risk profile. Some lenders use a factor rate structure rather than a traditional interest rate, particularly for shorter-term loans. We'll present all costs, including fees, in a clear comparison so you can make an informed decision.

Question 4

Can I get a business loan with a bad credit score?

Accepted Answer

Yes, though your options narrow and the cost of borrowing increases. Some of our lender partners specialise in business lending to applicants with impaired credit, placing more weight on current revenue and cash flow than credit history. We'll identify which lenders are a realistic fit for your situation rather than sending you down a path that ends in rejection.

Question 5

How long does it take to get a business loan approved?

Accepted Answer

For businesses with clean financials and 12+ months of trading history, conditional approval can come through in as little as 24 hours. Full approval and funding typically follows within 1-3 business days once documentation is complete. ClariFi helps you prepare the right documents upfront. Standard requirements include 6-12 months of bank statements, an up-to-date profit and loss statement, and your ABN details.

Business Funding Without Putting Your Property on the Line

The ClariFi advantage.

No Property Security Required

Funding From $10,000 to $500,000

Fast Decisions for Established Businesses

Flexible Use of Funds

Helping Australians get better rates since 2020.

Business Loans — common questions

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