Quick answer
An unsecured business loan doesn't need property as security. It's sized on your turnover and bank statements, typically from $5,000 to $500,000. It tends to suit trading businesses with steady deposits that need a defined amount for a clear purpose, such as equipment, stock, a hire or a refit. It's less suited to brand-new businesses, very large amounts or recurring gaps better handled by a line of credit.
Key points
- No property needed — sized on turnover and bank statements.
- Typically $5,000 to $500,000 for trading businesses.
- Best for a defined, one-off need with a clear payback.
- Consistent deposits in one business account make the biggest difference.
- Amounts
- Typically $5k – $500k
- Security
- No property required
- Sized on
- Turnover and bank statements
Not every business owner has property — and plenty who do would rather not use it. For trading businesses, an unsecured business loan is often the natural starting point: a lump sum for a clear purpose, sized on what your business actually brings in.
Here’s how to tell whether it’s the right fit for you.
How does an unsecured business loan work?
Instead of relying on property, the lender looks at your business’s trading performance — mainly through your bank statements — to decide how much it can carry. Loans are typically $5,000 to $500,000, repaid over an agreed term with regular repayments.
Because there’s no property, a few things usually follow:
- Turnover and consistency matter most. Steady deposits into one business account are your strongest evidence.
- Personal guarantees are common. Directors or owners often guarantee the loan personally.
- Amounts are sized to the business. A business with modest monthly deposits will generally access a smaller amount than one with strong, steady takings.
Who does it tend to suit?
| You… | Why it can fit |
|---|---|
| Trade consistently and don’t own property | No security needed |
| Need a defined amount for a clear purpose | A lump sum with a set term matches one-off needs |
| Want to keep property out of the business | Separates home and business risk |
| Are buying equipment, stock or funding a hire | Clear purpose, clear payback |
| Have a strong trading history | Opens larger amounts within the typical range |
When might another option suit better?
- You’re brand new or not trading yet. There isn’t enough history to size a loan on. Property-secured options or building history first may suit better.
- Your need comes and goes. Recurring gaps usually suit a line of credit rather than a lump sum.
- You need more than around $500,000. Larger amounts generally need property security.
- Your deposits are very irregular without explanation. Lenders need to understand the pattern.
Not sure which camp you’re in? A real person can tell you — about a minute to enquire, no credit check at that first step.
How can you strengthen an unsecured application?
A few coaching tips that genuinely move the needle:
- Run all sales through one business account. Split accounts hide trading.
- Keep personal spending out. It makes your statements clearer and your business look more organised.
- Lodge BAS on time. Up-to-date lodgements are a quiet signal of good management.
- Avoid stacking short-term advances. Several at once can make lenders nervous about capacity.
- Know your purpose and payback. “A second van to take on the overflow work we’re turning away” beats “working capital”.
- Check your numbers first. Our business health check covers the handful of numbers worth knowing.
What does “sized on turnover” actually mean?
Lenders look at the deposits flowing into your business account over recent months, then consider your existing commitments and how comfortably a new repayment fits. There’s no single formula shared by every lender, but the principle is the same: the repayment has to sit comfortably within what the business brings in, including in quieter months.
That’s why seasonal businesses benefit from providing statements that cover both busy and quiet periods — it shows the full picture.
An illustrative example
Illustrative only. An online homewares store has traded for three years with steady monthly payouts into one business account. The owner wants to fund a larger order of her two best-selling ranges ahead of the Christmas season and upgrade her website.
She doesn’t own property and would rather not use her parents’. Her funding plan ranks an unsecured loan first for the defined order and website project, sized to her deposits, and a line of credit second for future rolling restocks.
What will you need?
- Photo ID and ABN (plus ACN for a company)
- Recent business bank statements — ideally from one main account
- BAS lodged and up to date
- A clear purpose, with quotes or invoices where relevant
- Details of existing business debts
How does it compare to other options?
- vs property-secured loans: smaller maximum and more reliance on trading, but no property at risk.
- vs lines of credit: a fixed lump sum with a set repayment schedule, rather than a revolving limit.
- vs caveat loans and second mortgages: no property involved, and generally for trading-funded needs rather than short bridges.
What does a personal guarantee mean for you?
A personal guarantee means that if the business can’t repay, you’re personally responsible for the debt. It’s standard for many unsecured business loans, and it’s worth taking seriously:
- Read it carefully before signing, and ask questions about anything unclear.
- Understand what’s covered — the loan amount, fees, interest and enforcement costs.
- Consider your household. If a partner is also asked to guarantee, they should understand it fully too.
- Get advice if you’re unsure. A solicitor or accountant can explain what it means for you.
A guarantee doesn’t mean something will go wrong — it means you’ve backed your business with your own promise. Borrow an amount the business can comfortably carry, and that promise stays theoretical.
Trading well without property? Let’s see what fits
Your trading history is your strongest asset here. We’ll help you work out whether an unsecured loan is the right fit, how much makes sense and whether another structure would suit your need better.
It takes about 60 seconds to enquire and there’s no credit check. We don’t circulate your details to a string of lenders; a real person reads your situation and calls you. Please answer accurately — especially your monthly deposits, trading time and what the money is for — so we can match you properly first time.
Frequently asked questions
How much can I get with an unsecured business loan?
Unsecured options for trading businesses are typically $5,000 to $500,000. The amount you can access depends mainly on your turnover, the consistency of your deposits and your existing commitments.
Do I need to be trading for a certain time?
Lenders need enough history in your bank statements to see how the business trades. There's no single rule, but the longer and steadier your history, the more options you'll have.
Will I need to give a personal guarantee?
Often, yes. Even without property security, lenders commonly ask directors or owners to personally guarantee the loan. Make sure you understand what that means before you sign.
Can I get an unsecured loan with bad credit?
Credit issues are considered case by case. Clean, consistent bank statements and a clear explanation help. For larger amounts, property security may be more realistic.
Is an unsecured loan faster than a secured one?
It can be simpler because there's no property valuation or mortgage to register. How quickly it moves still depends on how fast the documents come together.