How to Get a Business Loan with No Assets in Australia

Most traditional bank business loans require security — commercial property, residential property, or significant assets. But many small business owners don't have these, especially in the early years.

Fortunately, unsecured business lending has grown significantly in Australia, and there are realistic options for businesses that can demonstrate revenue and cash flow — even without assets to pledge.

What "No Assets" Means for Business Lending

When lenders say they require security, they typically mean one of:

• Real property security — a residential or commercial property mortgaged as security
• Chattel security — equipment, vehicles, or stock pledged as collateral
• Personal guarantee — you personally guarantee the loan (this is different from physical assets)

Unsecured loans don't require physical assets — but almost all business lenders will still ask for a personal guarantee from the business owner(s). This means if the business can't repay, you're personally liable.

Unsecured Business Loan Products

1. Revenue-Based Unsecured Loans

Lenders like Prospa, Moula, Lumi, and OnDeck assess your business bank statements and revenue history rather than assets. They'll typically lend 50–100% of monthly revenue, with repayment terms of 3–24 months.

Approval can happen in 24–48 hours. The tradeoff is higher interest rates — often 15–40% effective annual rate.

2. Business Line of Credit

A revolving facility where you draw down and repay as needed — only paying interest on what you use. Suitable for managing cash flow gaps. Available from fintech lenders with less documentation than a bank.

3. Invoice Finance

If your business invoices other businesses (B2B), you can advance 70–90% of outstanding invoices before they're paid. The invoice itself is the security — no property required.

What Lenders Assess Instead of Assets

• Monthly revenue — typically need $10,000+ per month for most unsecured products
• Business bank statements — 3–6 months showing consistent deposits
• Time in business — usually 12 months minimum (some require 6 months)
• Credit history — personal credit of the director/owner is checked
• Industry type — some industries (hospitality, retail) face higher rates due to perceived risk

Bank Unsecured Business Loans

Major banks also offer unsecured business loans — typically up to $250,000 — but their requirements are stricter:

• 2+ years in business
• Profitable or breakeven trading (tax returns showing this)
• Clean credit history
• Strong bank statement history

CBA's BusinessLine, NAB QuickBiz, and ANZ Business Select are examples. Rates are lower than fintech lenders but approval is slower and requirements are tighter.

The Real Cost of Unsecured Business Lending

Unsecured business loans in Australia often use factor rates rather than interest rates. A factor rate of 1.2 on a $50,000 loan means you repay $60,000 — a $10,000 fee regardless of how quickly you repay.

Always ask for the effective annual rate (EAR) or annual percentage rate (APR) so you can compare products properly. A factor rate of 1.2 over 6 months is roughly equivalent to a 40–50% annual rate.

SME Guarantee Scheme

The Australian Government's SME Guarantee Scheme allows accredited lenders to offer unsecured loans with the government guaranteeing 50% of the loan. This reduces lender risk and can improve the terms available. Check the current status of this scheme directly — it has had multiple iterations.

When to Use a Broker

A commercial finance broker can compare multiple unsecured lenders in one application, knows which products suit which industries, and can negotiate on rate and terms. The best ones don't charge the borrower — they're paid by the lender on settlement.