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flexible business loans

Looking for
a small business loan
in Australia?

Apply online for unsecured funding up to $300,000
in under 5 minutes.

Let's get started

How much are you looking to borrow?

This is how we do it at Lumi

Easy 5-minute
online application

Unsecured business loans
up to $300,000

Money in the bank
on the same day

Provided you submit all the
required documents

repayment options

4-week interest-free
payment pause

Small Business Loan Options

What small business
loan options are
available in Australia?

In Australia there are a number of different small business loans available. Long gone are the days of lengthy application processes where small business owners were required to make an appointment at their bank and bring thousands of documents to apply for business funding.

Nowadays online small business lenders, like Lumi, specialise in providing easy access to flexible funding for small businesses.

This means that you can have an easier application process, often completed within minutes online, access to the funds on the same day and enjoy a greater flexibility when it comes to making your loan repayments.

The most common small business loan options in Australia include:

  • 01

    Secured Business Loans This type of loan requires you to secure the loan against collateral such as property. This is especially relevant for small business owners looking to borrow large amounts of money. At Lumi, if you wish to borrow more than $300,000, you will need to apply for secured funding. This type of loan often runs for a longer period of time and the interest rate can be very competitive.

  • 02

    Unsecured Business Loans Unlike the secured loan, this loan does not require any collateral for security. It’s a great option for those looking to get funds fast since the application process is simple and often only requires minimal documentation. At Lumi you can borrow up to $300,000 unsecured. The loan term for an unsecured loan can often be shorter than for a secured loan, especially if the loan amount is significantly smaller. However, interest rates can be slightly higher for this loan option because of the increased risk the lender takes in lending a borrower unsecured money.

  • 03

    Short Term Business Loans As the name suggests, these loans usually run for shorter periods of time. Most commonly between 3-18 months. Short term business loans can be either secured or unsecured, depending on how much you wish to borrow.

  • 04

    Business Line of Credit Unlike the traditional term loan, where you receive a lump sum of money and start paying interest on the full amount from day one, the business line of credit works more like a credit card. Essentially you apply for an allowance. If approved, you will be given access to this allowance and you only pay interest on the money you actually use.

    For example, let’s say you get an allowance of $30,000 on your business line of credit. That money is available to you at any time you need it. Now you want to purchase new equipment for $7,000. Instead of paying interest on the total allowance, you only pay interest on the $7,000 you spent. Best feature about this loan option is that you can reuse the money over and over until you close the account. As long as you make your repayments, which means that you regain your allowance.

    This is a great loan option for small businesses looking for greater flexibility and peace of mind, knowing that they will always have access to cash if they need it.

Australia is now one of the leading countries offering innovative fintech products and small business loans. Make sure you stay up to date with the recent developments to set your business up for success when it comes to effectively managing your cash flow.