Small Business Loan Comparison Table
| Loan Type | Benefits & Suitability |
|---|---|
| Unsecured Business Loan | Benefits & Suitability: An unsecured business loan is a flexible form of business funding that can be used for any purpose, with loan amounts ranging from $5k to $300k and a facility term of 3-24 months. This loan type is popular for businesses in need of fast cash-flow, with approval and settlement often achievable within the same business day. |
| Small Business Line of Credit | Benefits & Suitability: A small business line of credit is a revolving facility term that provides businesses with a cash-flow safety net, allowing them to reduce stress by keeping funds readily available. This loan is incredibly flexible, with businesses only paying for what they use and having immediate access to funds when required. |
| Invoice Factoring/Finance | Benefits & Suitability: Invoice factoring/finance provides businesses with a facility term of typically 30/60 days, allowing them to unlock cash-flow from their accounts receivable ledger and reduce the stress of chasing outstanding invoices. This loan type helps businesses get immediate cash-flow relief by unlocking the cash flow sitting in their unpaid invoices. |
| Merchant Cash Advance | • Short payment terms typically 3/6 months • Payments based on revenue • Supports new business with growth A merchant cash advance is a great option for new businesses experiencing rapid growth. This type of funding can help support a growing business with the cash flow they need to expand and take advantage of opportunities when they arise. Payment terms are usually short and based on revenue, making it a flexible option for businesses. |
| Equipment Finance | • Facility term up to 60-Months (Revolving) • Balloon option • Flexible repayment terms Equipment finance is best suited for businesses looking to upgrade or purchase new equipment. It provides an affordable way to make a significant equipment purchase and is typically faster than securing an unsecured term loan. This type of funding offers flexible repayment terms and can include a balloon payment option. |
| Hire Purchase | • Flexible facility terms from 3 months to 5+ years • Great option for newer businesses with less financial history • Option to upgrade to new equipment at end of term Hire purchase is an excellent option for newly established businesses with limited credit history. This type of funding provides flexibility with the option to take ownership of an asset at the end of an agreed term (for a fee) or hand the asset back for an upgrade. |
| Purchase Order Funding | • Facility terms up to 12-months • Short term funding to fulfill orders • Ability to secure a business loan against future sales Purchase order funding provides a way for a business to ensure their cash flow keeps up with the growth of their business. It's a fantastic option for businesses experiencing growth working in product supply industries with extended invoice payment terms. This type of funding allows businesses to secure a loan against future sales to fulfill current orders. |
| Business Term Loan | Suitable for established businesses with a strong trading and credit history, a business term loan offers flexible repayment terms of up to 30 years. This type of loan allows for principle and interest only options, and can be more affordable due to the longer repayment term. It is ideal for businesses looking to make a significant purchase within their operations. |
| Personal Loans | A personal loan can provide quick cash injections to a business with no restrictions on how the funds can be used. This type of loan offers flexible repayment terms of up to 5 years and often has fee-free early repayment options. Personal loans are best suited for smaller purchases. |
| Business Credit Card | For smaller business purchases, a business credit card can be a great option. This type of funding provides fast access to funds when required, similar to a business line of credit. It also offers interest-free payment terms and can be used as an emergency cash-flow option. |