How To Compare Business Loans In Australia

Are you looking to compare business loans but don’t know where to start? 

At OnDeck, we’ve been at the forefront of helping business owners access the funding they need to tackle their next big opportunities. We believe that getting a loan shouldn’t feel like a second job, and so does making a business loan comparison.

As you read along, we’ll simplify business loans, explain the advantages of online lending, and help you compare options so you can choose the financing solution that supports your business goals.

What are business loans?

Before you can compare business loans, it’s essential to pinpoint exactly what you’re venturing into in the first place. A business loan is a kind of financing solution that could give you quick access to funds for your business needs.

These business financing options come in various forms, with small business loans being one of them. 

These loans offer extra cash flow to bolster your growing business. Whether it’s paying for urgent repairs, making renovations, or ensuring you don’t miss out on lucrative deals due to a shortfall in funds, small business loans are there to see you through. They could also assist you in navigating unforeseen challenges, keeping your business afloat, and moving forward.

How to compare business loans

The first step to finding the best business loans for your needs is to assess where you can access them. Generally, you may apply through either banks or online providers. 

What are the advantages of getting a business loan from an online lender?

Exploring business financing online reveals distinct advantages, especially when you compare business loans from online lenders to those from traditional banks.

Unlike the rigid frameworks set by traditional banks, online lenders generally offer more flexible requirements, making it accessible for a broader range of businesses to secure funding.

Moreover, the speed of funding is another critical benefit. Online lenders have streamlined the application process to such an extent that business owners can typically receive capital quicker than they would with traditional banking routes.

Additionally, the convenience and simplicity of the application process cannot be overstated. With less paperwork and a more straightforward process, online business loans save precious time for busy entrepreneurs.

However, not all online business financing options are equal. Here’s how to do a business loan comparison for these online lenders.

How do I compare business loans from online lenders?

Firstly, you need to consider the eligibility criteria, which can vary significantly between online loan companies. Applying for an option where you meet these qualifications can make the process more streamlined.

Knowing whether they offer secured or unsecured loans is also crucial; secured loans are backed by assets like property, whereas unsecured loans do not require such collateral. 

Next, you want to compare business loans in terms of the amount you can borrow. Different lenders offer varying maximum and minimum amounts, which could influence your decision based on your financial needs. Loan terms are another essential aspect to compare. Finally, the level of support offered by the lender can make a significant difference.

At OnDeck, we deeply understand the unique challenges faced by small business owners. Our promise is to go beyond making accessing funds faster and more convenient for you but also to help you feel supported in the process.

See, traditional banks may have specialists you can talk to, but they often move slowly in granting loans. Other online lenders might prioritise speed over human service. We at OnDeck bridge this gap.

We’ve harnessed technology to expedite the lending process significantly while ensuring you have direct access to a loan specialist. This ensures that you’re supported every step of the way, with someone ready to clarify your options, answer queries, and be there when you need them the most.

Through our Lightning Loans®, eligible businesses can access swift funding. Our loan terms and repayment plans are tailored to fit your business’s specific needs, underscoring our commitment to flexibility.

Our online application takes as little as ten minutes to fill out, and you can receive a decision in as little as thirty minutes. If we approve your application, you can expect the funds to be transferred into your account in as little as two hours.

Frequently Asked Questions (FAQ)

What are the eligibility requirements for a business loan?

As mentioned, understanding the eligibility requirements is crucial when you want to compare business loans. While each lender has their own eligibility requirements, at OnDeck, we aim to make these criteria straightforward and accessible.

To qualify for a business loan with us, you need:

• a minimum of one year in business;
• a minimum $100,000 gross annual turnover;
• a clean financial slate with no history of bankruptcy (prior or recent); and
• a business credit score of at least 400.

How do I calculate the total cost of borrowing for a business loan?

You want to add any loan interest rates and fees associated with your loan. Different lenders may have varying fees and charges, but this may include an establishment fee, early repayment fees, late payment fees, and account-keeping fees. It’s worth partnering with a lender who will disclose every cost of your loan at the start.

At OnDeck, we’re all about transparency in the fees on our loans. This way, you can understand your small business loan rates and your total cost without worrying about hidden costs.

How do I determine my weekly payments for my business loan?

Before you commit to any loan, it’s essential that the details of your repayments are clearly outlined by your lender. 

Your OnDeck loan specialist will not only help you determine the best loan type and loan term for your type of business but also answer questions about your weekly repayments. Generally, an estimate of your repayments will be made based on your desired loan amount, creditworthiness, and loan terms, providing you with a ballpark figure tailored to your specific needs.

Accelerating your business growth with OnDeck

At OnDeck, we’re passionate about propelling business owners by offering small business loans Australia-wide. Specialising in fast, flexible funding, we’re dedicated to helping you achieve more. Our expertise, drawn from years of global experience, is tailored to meet the unique needs of your venture. 

Ready to take your business to the next level? Apply now.

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