Negative Cash flow is the biggest issue most businesses face.

The key feature of an unsecured business loan is that it does not require any collateral IE an asset such as a Vehicle or Property.

To qualify for an unsecured business loan you will need to be deemed ‘Credit Worthy’ VIA an approved Credit check, strong bank statement conduct & manageable tax debt. Most lenders can also connect to your cloud accounting software for faster, low touch outcomes (loan amounts $250,000+).

There are now a number of unsecured loan providers in the non-bank space, each with differing credit criteria and pricing. It is best to complete an application and ‘business health check’ with your Bloomfield Financial Representative to determine your best product match. Rates can vary from 8.95% – 36% APR (Market Average), and in most cases only require a personal guarantee from the business director/s and majority shareholder/s.

If you have bills outstanding or are looking to kickstart potential growth opportunities, an unsecured business loan will provide you fast access to capital.

Fast, Simple access to Capital
Your Bloomfield Financial representative can apply for an unsecured loan online for you, usually in just a few minutes, with turnaround times much faster than a secured loan. Same day funding is available to the right candidates. A straight-forward unsecured loan application can be approved in as little as 2 hours with same day settlements.

There is no security required
The main advantage of an unsecured business loan is that no security is required. If you do not own a property or have a corporate structure that does not allow for collateral to be offered to a bank you can still access funding.

They are easier to access
Unsecured loans give businesses who do not meet the bank’s rigorous lending criteria the opportunity to access financing.

It improves your business credit score
Successfully paying off your unsecured loan will help to build your credit history, improve your business credit score and make it easier to obtain a loan in future. A strong commercial credit reference is a key indicator used by most commercial funders on secured and unsecured finance applications.

Borrow the amount you require
Secured loans are typically constrained by the value of the property or asset being used as collateral. Unsecured loans, however, are dependant on your industry, turnover, balance sheet and profitability. This allows for higher approval limits for the right businesses, with funds deposited to your trading account.

Unlike a term loan, a line of credit is a loan facility that can be readily drawn down or repaid back at any time within a pre-determined limit. Like a credit card or an overdraft, interest is only charged on any amount that is drawn and the funds can be drawn down or repaid back at any time. Line of credit facilities can come in both secured and unsecured forms. If collateral (property) is provided, this will help you get a lower interest rate, however may not be ideal if you don’t want to have any assets locked up as collateral.

A Business Line of credit will also come with ‘line fees OR draw down fees’ generally ranging from 1-4% of the drawn down funds.

Eligibility

• Credit Score
• Time In Business
• Annual Revenue
• Serviceability
• Your Security
• Bank Statements
• Industry
• ATO Portals/Tax Debt Levels

Line of credit facilities are best kept as reserve funds (safety blanket) and for businesses who have pre-determined bills such as stock purchases. Seasonal businesses, construction businesses & any industry that experiences lumpy cashflow is suited to a line of credit. The use of the funds is at discretion of the business, unlike a trade facility which requires a supplier invoice.

A business line of credit is primarily used to access short-term funding. Some common uses of this funding include:

• Financing payroll
• For operational expenses
• To increase inventory
• Unexpected expenses
• For seasonal working capital
• Marketing or PR opportunities
• Paying bills while waiting for receivables
• Tax Payments
• Deposits on assets/purchases from overseas

Documents Required

• Up to $250,000 with only 12 months business bank statements
• $500,000+ with 12 months business bank statements, Aged Payables/Aged Receivables, ATO Portals, Cloud accounting connection OR Last 2 Years Company Financials, FYTD Interim profit loss + Balance Sheet

Like a line of credit, an overdraft is an open line of funds with a predetermined limit that can be drawn and paid back at any time on revolving basis. An overdraft is one of the more popular working capital solutions in the finance sphere due to its flexibility and fast access to funds.

The loan terms are variable, you only pay interest on funds drawn and in most cases you can avoid ‘line fees’ associated with a line of credit. Your Bloomfield Financial Representative will confirm product particulars on your consultation.

Overdrafts can be used at the discretion of the business, whether the funds are used to pay for unexpected expenses or fund a new growth opportunity, that is entirely up to you.

A Business Overdraft Can is a sustainable solution for Your Cashflow
If you operate a seasonal business that experiences peaks and troughs, arranging an overdraft facility could solve most cashflow shortages. If used effectively, it can alleviate many of the stresses of the day to day operation of your business, with the knowledge you have access to funding at a moments notice to pay bills, purchase stock or take advantage of last minute opportunities.

You Only Pay Interest On funds drawn
Interest applies only to funds you have actually utilised.

Business Overdrafts offer greater Flexible
Unlike an unsecured term loan, an overdraft can be used on an ongoing basis, they can be unsecured or secured, and range between $20,000 and $300,000. Larger Overdraft facilities will generally require property security.


Documents Required

• Up to $150,000 with only 12 months business bank statements
• $150,000+ with 12 months business bank statements, Aged Payables/Aged Receivables, ATO Portals, Cloud accounting connection OR Last 2 Years Company Financials, FYTD Interim profit loss + Balance Sheet