Get secured or unsecured business funding for up to $500K. For loan terms of 3 months to 3 years. No application or account keeping fees to pay. Minimum loan amount is $10,000. Get approval in 24 hours. Loans over $100,000 require security. Minimum annual turnover of $120K.
Get secured or unsecured business funding for up to $500K. For loan terms of 3 months to 3 years. No application or account keeping fees to pay. Minimum loan amount is $10,000. Get approval in 24 hours. Loans over $100,000 require security. Minimum annual turnover of $120K.
Manage the cash flow in your business with ease. Access up to $50,000 without using your assets as security. Lending criteria apply. Access your available limit from your linked Business+ Account. Use your Debit Mastercard for added convenience. Interest is charged on your balance owing, not your limit. Easy online application. $495 establishment fee.
Manage the cash flow in your business with ease. Access up to $50,000 without using your assets as security. Lending criteria apply. Access your available limit from your linked Business+ Account. Use your Debit Mastercard for added convenience. Interest is charged on your balance owing, not your limit. Easy online application. $495 establishment fee.
Read our Mozo Review to learn more about the Business+ Unsecured Overdraft
Increase cashflow by unlocking the power of your receivables with Octet’s Invoice Finance solution. Receive up to 85% of your debtor’s ledger with tailored facilities ranging from $100K to $12M.
Increase cashflow by unlocking the power of your receivables with Octet’s Invoice Finance solution. Receive up to 85% of your debtor’s ledger with tailored facilities ranging from $100K to $12M.
Prospa uses risk-based pricing to determine your interest rate. They look at factors including your industry, years in business, cash flow, creditworthiness and the overall financial health of your business.
Prospa uses risk-based pricing to determine your interest rate. They look at factors including your industry, years in business, cash flow, creditworthiness and the overall financial health of your business.
Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.
While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.
A short term business loan is exactly as advertised: a business loan that can be taken out over a short period, generally 3- 24 months.
They’re very similar to a regular business loan because they can be used to fund a whole range of purposes including:
Covering unexpected costs
Filling seasonal cash-flow holes
Paying for emergency repairs
Awaiting a client to pay an invoice
Short term business loans tend to have faster repayment schedules, so you may need to pay interest on a daily or weekly schedule instead of fortnightly or monthly.
Short-term business loans typically have higher interest rates than longer term loans, but this is mitigated by the fact that you’ll be paying it off quicker. Rates can vary significantly between lenders though, and as of March 2024, can be anywhere from 9%-26% per annum, depending on a lot of factors including the lender’s criteria, the length of the loan, your business’ serviceability and more.
Interest rates also come in two types:
Fixed interest rates: A fixed rate means your repayment amount will never change because you’ll be locking in your rate for the whole loan term. However, fixed rates do tend to be on the higher side.
Variable interest rates: A variable rate will change according to market conditions, such as interest rate movements, so if your rates rise, so will your repayments. These types of loans also come with other repayment features, like the ability to make extra repayments and to make use of a redraw facility.
Like personal loans, short term business loans are available as secured or unsecured. But there’s also a third option: a commercial loan. All three loans have pros and cons, which you will need to weigh up before you decide on the one that’s right for you.
Secured short term business loans. A secured loan will require an asset to be used as security, like your home or car, and in return you will often receive a lower interest rate. Just keep in mind that if you default on the loan, your lender has the right to repossess the asset.
Unsecured business loans. Unsecured business loans don’t require any security, but they do generally come with higher interest rates.
Commercial loans. A commercial loan is your third finance option, which usually comes in the form of a business overdraft or a line of credit. A line of credit is an established agreement between you and your lender that gives you access to a predetermined amount of credit whenever you need.
Like any loan, there are likely a few fees you’ll need to budget for. Some of the most common fees you might be charged include:
Establishment fees. Also known as application or upfront fees, these are one-off payments charged at the start of the loan, covering the cost of setting up your account with the lender.
Service fees. These are also known as ongoing fees and are charged on either a monthly or annual basis over the life of the loan.
Late payment fees. Most lenders charge late payment fees if, you guessed it, you fall behind on your repayments.
Early repayment fees. Also called a break fee, this is charged on fixed-interest loans if you pay your loan early. It will usually equal the remaining interest the bank would have received if you had stuck out the full length of your loan. Variable rate loans typically won’t charge break fees.
Business loans generally fall into two different categories: those available from banks and those available from up-and-coming online lenders, with each having their respective benefits and drawbacks.
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While every lender will need to do their due diligence in order to make sure your business satisfies their lending criteria and you can afford to pay back the loan, businesses will generally be able to take out short term business loans from as little as a few thousand dollars all the way up to hundreds of thousands.
To give you an example, the short term business loans featured at the top and bottom of this page typically start from around $5,000 and go up to $500,000.
These days, applying for a short-term loan is quite simple, and you can most of it sorted online. After you've compared your options and landed on a loan offer you’re comfortable with, here’s what to do:
Hop onto the lender's website to begin your application process.
Fill the application out completely, and provide requested documents and info (like your ABN/ACN, bank statements and contact info).
Submit your application and await further instructions from the lender.
In some cases, you can get your funds within 24 hours of approval.
Your lender will take a number of factors into consideration during the application and approvals process, and you may need to provide a range of information:
Business eligibility. Some lenders will have different eligibility requirements, like having been in business for a minimum of 6 months or having a minimum annual turnover (e.g. $100,000).
Financial documents. Lenders often require proof of your financial position, so you may be asked for anything from bank account statements and tax returns to proof of cash flow.
Personal credit history. Lenders may also take the personal financial history of business owners and directors into account
Turnaround time. Depending on your financial situation, you may need to access the funds quickly, so it may be worth considering lenders with quick application and approval processes.
Before you submit your application, it’s important you’re aware of the common mistakes that could see your application rejected. This could include:
Frequent changes to your business structure. If your business has undergone multiple reconstructions you could have your application rejected.
No loan purpose. If you don’t have a business plan that demonstrates what you intend to use the loan for, your lender may see this as a red flag.
Borrowing too much. If you’re asking for more than you can afford, your lender may reject your application.
