HomeCommonly Asked QuestionsBusiness Loan Types
Commonly Asked Questions

Business Loan Types

The core loan types, in plain English. What each one is, what it costs and when it’s the right tool. Start here if you’re weighing up how to fund something.

What is an unsecured business loan?Read the answer →What is a secured business loan?Read the answer →What is a business line of credit?Read the answer →What is equipment finance?Read the answer →What is a business term loan?Read the answer →What is a business overdraft?Read the answer →What is a low doc business loan?Read the answer →Can I get an interest only business loan?Read the answer →What is a caveat loan?Read the answer →What is a second mortgage on a business loan?Read the answer →What is private lending for business?Read the answer →What is a business bridging loan?Read the answer →What is trade finance?Read the answer →Business credit card or business loan?Read the answer →What is a fully drawn advance?Read the answer →What is a commercial bill facility?Read the answer →Why does an unsecured business loan cost more?Read the answer →What is a business mortgage?Read the answer →Short term or long term business loan?Read the answer →Which type of business loan suits what I am funding?Read the answer →Line of credit or overdraft, what is the difference?Read the answer →What is a balloon payment?Read the answer →What is asset finance?Read the answer →Can a business loan have redraw or offset?Read the answer →What is a revolving credit facility?Read the answer →Is there a comparison rate on a business loan?Read the answer →What is a construction progress draw facility?Read the answer →Can I get a business line of credit secured by property?Read the answer →What is a bank guarantee facility?Read the answer →What is a business loan top up?Read the answer →What is a floor plan or bailment facility?Read the answer →What is a master facility?Read the answer →What is a non bank lender and how does it differ from a bank?Read the answer →What is a syndicated business loan?Read the answer →What is mezzanine finance for business?Read the answer →What does it mean to rank behind another lender?Read the answer →Does borrowing through a trust change anything?Read the answer →What is a general security agreement?Read the answer →Can I use equity in my business premises?Read the answer →Can a director guarantee be limited?Read the answer →What are loan covenants and what happens if I breach one?Read the answer →When does a private lender make sense?Read the answer →What is a facility limit versus a drawn balance?Read the answer →Letter of offer or facility agreement, what is the difference?Read the answer →Do I have to repay a line of credit on a set schedule?Read the answer →What happens to my loan if I bring in a new shareholder?Read the answer →Should the loan be in my company name or my own name?Read the answer →Can I get a repayment holiday at the start of a loan?Read the answer →Where does the ATO sit against my lender if things go wrong?Read the answer →What is BBSW and how does it affect my business loan rate?Read the answer →Bank guarantee or insurance bond for a lease?Read the answer →Can I borrow in one entity and use the money in another?Read the answer →Can interest be capitalised on a business loan?Read the answer →What is cross collateralisation in business lending?Read the answer →How much can I borrow without offering security?Read the answer →Is a lender’s term sheet binding?Read the answer →

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