You’ve asked and we’ve answered! Today, we’ll be providing answers to some of our most frequently asked unsecured business loan questions.
What’s the major difference between a secured and an unsecured business loan?
Put simply, a secured loan requires collateral, whereas an unsecured loan doesn’t. Collateral is an asset you own (often property or a vehicle) that is put on the line in the situation that you are unable to meet your loan repayments. Thankfully, an unsecured business loan is collateral-free, requiring only a personal guarantee from the director(s) of the company.
What are the minimum requirements to apply for a loan?
To qualify for a small business loan, you just need to:
- Be running an Australian-registered business
- Have been in operation for at least 6 months
- Be producing a minimal annual turnover of $50,000
What documentation will you need to process my loan application?
To get started with your loan application, you’ll just need the following on-hand:
- ABN / ACN
- Driver’s License
- Business bank account details (for online banking)
Additionally, you can link-up your cloud accounting software to complete the application, or we also accept your accounting statements as PDFs.
How much can I borrow?
Lumi offers loan amounts from $5,000 to $100,000.
What is the term of the loan?
Our loan terms range from 3 – 12 months.
How much will my repayments be?
While this amount will differ based on the amount borrowed, loan term, and interest rate, you can use our handy business loan repayment calculator to find out exactly what you’re up for (even before you apply).
Alternatively, our customer sales team will be very upfront with your repayment amount when discussing your loan with you.
What is the interest rate of an unsecured business loan?
We don’t believe in using an annualised interest rate to describe our loans, particularly because the majority of them are repaid within just 6 months. Instead, this rate will fluctuate based on a number of criteria, such as your annual turnover, length in business, etc.
How quickly can I receive my funds?
Once approved, you can have your funds deposited into your nominated business account as early as the same day.
How long does it take for my application to be reviewed?
As soon as we receive your business loan request, our team immediately begin reviewing your loan. You can expect an outcome on your application within just 24 hours.
How will I know if I’ve been approved / declined?
Once your application outcome has been reached, you will receive a phone call from our customer sales team to let you know if you have been approved or declined.
Are there any hidden fees or charges that you haven’t disclosed?
No – at Lumi, we believe in total transparency when it comes to small business finance. We fully disclose all costs associated with your unsecured loan before you sign off on the dotted line. No guesswork, no hassles, no reading between the lines.
Got any more unsecured business loan questions that we haven’t answered in this post? Feel free to check out our additional FAQ section, or leave us your question in the comments below!
Interested in applying for an unsecured business loan with Lumi? Fill in our application online or call 1300 00 LUMI.