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What are small sole trader business loans?

by OnDeck Australia,   May 05, 2023

The Australian small business landscape is full of sole traders that require access to funding. Sole trader business loans can be a lifeline for many entrepreneurs who are struggling to secure financing for their business. As a sole trader, you may face unique challenges when it comes to accessing funding, such as limited collateral or a lack of financial history. Fortunately, there are online lenders like OnDeck that offer small business loans specifically tailored to meet the needs of sole traders. 

Benefits of small sole trader business loans

One of the benefits of sole trader business loans is that they are typically unsecured, meaning you won’t have to put up collateral to secure the loan. This can be particularly helpful if you don’t have assets to offer as security, or if you don’t want to risk losing your personal property in case of default. Unsecured loans may also have a lower barrier to entry, as there is no need for a lengthy and complex valuation process to determine the value of the asset being put up as collateral. This can make the application process smoother and faster. Instead, unsecured loans are accessed based upon other factors, such as the applicants cash flow and credit score. Read more about OnDeck unsecured loans. 

Another advantage of a small business loan is that they can be obtained relatively quickly and with minimal hassle. Lenders like OnDeck understand that small business owners often need funds swiftly, so they offer a streamlined application process and fast approval times. In fact, OnDeck’s lightning loans can provide funding in as fast as one business day*, which is especially important if you need to take advantage of a time-sensitive opportunity or cover unexpected expenses. 

Small sole trader business loan eligibility

To be eligible to apply for an unsecured business loan from OnDeck, your business must have been trading for at least one year and have a minimum annual revenue of $100,000. You’ll also need a minimum business credit score of 500 and cannot have any recent bankruptcies. Meeting these eligibility requirements can help you get started with the application process and increase your chances of approval. 

Minimum $100,000 gross annual turnover

Minimum 1 year in business  

No bankruptcy

(Prior or recent) 

Minimum 420 business credit score required


One of the key features of an OnDeck sole trader loan is the emphasis on customer service and care for their small business customers. As the “passionately small” lender, OnDeck understands the unique needs of small business owners and strives to provide personalised support throughout the loan process. This includes a dedicated loan specialist who will work with you to understand your business needs and goals, as well as ongoing resources and support to help you manage your loan and grow your business. 

In conclusion, business loans for sole traders can be a valuable resource for business owners who are looking to grow their business or cover unexpected expenses. With lenders like OnDeck offering fast, unsecured funding* and outstanding customer service, it’s easier than ever for sole traders to access the capital they need to succeed. So, if you’re a sole trader in need of financing, consider exploring your options for small business loans today and find the lender that will best fit your needs. 

This article is for general information purposes only. Content may belong to or have originated from third parties and OnDeck takes no responsibility for the accuracy, validity, reliability or completeness of any information. OnDeck is not a financial adviser. You should consider seeking independent legal, financial, taxation or other advice to check how this information relates to your unique circumstances. OnDeck is not liable for any loss caused, whether due to negligence or otherwise arising from the use of, or reliance on, the information provided directly or indirectly, by use of this website. 
* The timeframe required to process and fund loan applications may vary for each individual application. Factors such as the completeness and accuracy of application materials, verification processes, and external circumstances can influence the processing & funding timelines. 


Prepared by OnDeck Capital Australia Pty Ltd ABN 28 603 753 215 (“OnDeck”) for general information purposes only. Content may belong to or have originated from third parties and OnDeck takes no responsibility for the accuracy, validity, reliability or completeness of any information. Information current as at May 2023. You should not rely upon the material or information as a basis for making any business, financial or any other decisions. Loans issued in Australia are subject to the terms of a loan agreement issued by OnDeck. Loans are subject to lender approval. OnDeck® is a Registered Trademark. All rights reserved.

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