What is a business loan?
A business loan is funding from a bank or other lender that helps a business cover costs or invest in growth.
- Buying equipment or vehicles
- Expanding operations
- Hiring staff
- Managing cash flow
- Buying stock
Secured and unsecured loans
A secured loan uses an asset — such as property, a vehicle or equipment — as security. An unsecured loan doesn't need a specific asset, but it may come with a higher interest rate and a shorter term.
What lenders look at
When a lender assesses a business loan application, it generally considers:
- Business revenue
- Profitability
- How long the business has been trading
- How stable the cash flow is
- Existing debts
Getting help with your application
Different lenders have different products and requirements. A finance specialist can help you understand your options, prepare your documents and put your application together.
This guide is general information only. It doesn't take into account your objectives, financial situation or needs. All finance is subject to the lender's credit assessment, terms and conditions, and fees and charges apply.