Unsecured business loans open the door to capital for owners who don’t have property to offer, or simply don’t want to put their home on the line. Instead of a valuation and a mortgage, the lender looks at the thing that actually repays the loan: your business’s cash flow. With FastBiz Loans, you can apply online for $5,000 to $500,000, share your bank statements through a secure link, and get a decision in as little as 4 hours. That’s easy access to business capital built on what your business earns, not what you own.
What is an unsecured business loan?
An unsecured business loan is finance that isn’t backed by a specific asset such as your home, an investment property or a piece of equipment. As business.gov.au puts it, a lender assessing an unsecured loan will usually look at your business’s financial health to make sure you can repay.
That shift, from “what can you pledge?” to “what does your business earn?”, is why unsecured lending suits so many modern businesses: service firms, clinics, salons, agencies, online stores, trades and hospitality operators who lease their premises and keep their capital working rather than tied up in bricks and mortar.
One plain note on wording: some lenders still register a general interest over business assets (never your home) on the Personal Property Securities Register, even on a loan described as unsecured. If that applies, your lending specialist will tell you up front.
How are unsecured business loans assessed?
Unsecured business loans are assessed mostly on your revenue and the story your bank statements tell. With no property to fall back on, the assessor wants confidence that the repayments fit comfortably inside your normal month. You’ll share 3–6 months of statements, usually through a secure read-only link, and these are the signals they read:
| What the assessor looks at | What reads well | What raises questions |
|---|---|---|
| Revenue level | Deposits comfortably above $5,000 a month | Takings that barely cover costs |
| Consistency | Steady deposits, or a seasonal pattern you can explain | Big one-off deposits propping up the average |
| Account conduct | Few or no overdrawn days or dishonours | Regular bounced payments |
| Existing debts | Repayments that sit comfortably alongside the new one | Several short-term lenders being repaid at once |
| Tax and super | Regular ATO payments or an agreed payment plan | ATO debts building with no plan |
| Buffer | A cushion left after the month’s outgoings | An account that hits zero before each payday |
Our guide to what lenders look for in bank statements goes deeper on each of these.
How do lenders set limits based on turnover?
Lenders set unsecured limits by working backwards from what your cash flow can carry. There’s no single formula, but the thinking usually runs like this:
- Start with average monthly deposits across the statements you’ve shared.
- Strip out money that isn’t trading income, such as transfers between your own accounts, owner top-ups, refunds or proceeds from other loans.
- Subtract existing commitments, especially repayments to other lenders.
- Leave a sensible buffer for quiet weeks and surprises.
- Size a repayment that fits what’s left, and turn that into a loan amount.
The practical takeaway: higher, steadier trading income and fewer existing repayments usually mean a larger unsecured limit. For loans over $150,000, you’ll add financial statements so the assessor can see profitability, not just deposits. Our guide on how much your business can borrow works through illustrative examples.
What is a director guarantee?
A director guarantee is a personal promise, made by a company director, to repay the business debt if the company can’t. It’s standard on unsecured lending to companies, because the company is a separate legal entity and there’s no property standing behind the loan. The guarantee gives the lender a person to rely on, which is often what makes an unsecured loan possible in the first place.
How it plays out by business structure:
- Company: the directors are usually asked to sign a personal guarantee alongside the company’s loan documents. ASIC’s guidance for new directors is a helpful read if you’ve recently taken on the role.
- Sole trader: you and the business are legally the same, so you’re already personally responsible for the debt. There’s no separate guarantee.
- Partnership: partners are generally responsible for partnership debts, so each partner typically signs.
- Trust: the trustee borrows on the trust’s behalf; if the trustee is a company, its directors usually guarantee.
Before you sign any guarantee, ask three questions: which loan it covers, whether it covers only this loan or future ones too, and what happens if you step down as a director. A good lending specialist will answer all three in plain language.
How can I strengthen an unsecured application?
You strengthen an unsecured application by making your cash flow easy to read. Because the assessor is relying on your statements rather than an asset, small things carry real weight:
- Share every account the business trades through, so your full revenue shows up.
- Explain any one-offs in a sentence: a big deposit from selling a vehicle, a quiet month while you renovated, a customer who paid three invoices at once.
- Clear up small overdrawn days in the weeks before you apply, if you can.
- Ask for the amount the job needs, not the biggest number you can think of. A well-sized request is easier to support.
- Keep ATO lodgements current. If you have a tax debt, an agreed payment plan tells a much better story than silence.
- Mention any assets you do have, such as vehicles or equipment. Even if you don’t use them as security, they help round out the picture.
Unsecured vs secured: which suits you?
Neither is better in general. It depends on what you have, what you’re funding and how quickly you need it.
| Unsecured | Secured | |
|---|---|---|
| What backs the loan | Your cash flow, plus a director guarantee for companies | A specific asset, such as property or equipment |
| Property needed | No | Often |
| Speed | Fast; no valuation to wait for | Can take longer if a valuation is needed |
| Paperwork | Bank statements, ID, ABN; financials over $150k | Similar, plus asset details |
| Best for | Working capital, stock, fit-outs, marketing, growth | Larger or longer-term borrowing, or buying a specific asset |
Our guide to secured vs unsecured business loans goes into when security can actually speed things up.
Which products work without property?
Several of our six products can be arranged without property security:
- Small business loan ($5k–$500k): a lump sum, available unsecured or secured.
- Business line of credit ($10k–$250k): a revolving limit you draw, repay and draw again.
- Merchant cash advance ($5k–$300k): repaid as a share of card and EFTPOS takings, so repayments flex with sales.
- Equipment finance ($10k–$500k) and invoice finance (up to 85% of invoice value) don’t need your home either; the equipment or the invoices themselves do the work.
Example scenario — illustrative only. A Perth salon owner who leases her shop and rents her home wants $45,000 to add two styling stations and a colour bar. Her takings are steady and deposited into one business account. Her company borrows unsecured, she signs a director guarantee after asking her specialist to walk her through it, and because there’s no valuation to arrange, the decision arrives the same afternoon.
Borrow on what your business earns
Every loan is priced on your business’s individual situation, and we look for the sharpest option available for it. If your business trades steadily and you’d rather keep property out of it, start your 60-second enquiry. It won’t affect your credit score, and a lending specialist will show you what your statements support.
Your path to funds
Step 1
60-second online enquiry, no credit score impact
Step 2
Talk through the amount and purpose with a lending specialist
Step 3
Connect business bank statements and upload ID
Step 4
Revenue-based assessment and decision in as little as 4 hours
Step 5
Directors e-sign the loan and any guarantee; funds can move same day
Questions we get asked
Can I get a business loan without property?
Yes. An unsecured business loan is assessed on your business's revenue and bank statements rather than on property. Many owners who rent their premises and their home borrow this way.
What is a director guarantee on a business loan?
It's a promise by a company director to repay the loan personally if the company can't. Lenders commonly ask for one on unsecured loans to companies, because there's no property standing behind the debt. Read the guarantee before you sign, and ask questions about anything that's unclear.
How much can I borrow unsecured?
It depends mainly on your monthly revenue, how consistent it is and what other debts you're already repaying. Loans range from $5,000 to $500,000, and your lending specialist will explain what your statements support. Amounts over $150,000 also need financial statements.
Are unsecured business loans harder to get?
Not necessarily. Because they're assessed on cash flow, a business with steady takings and tidy bank statements can often move faster than it would through a property-secured application, since there's no valuation to wait for.
Can a sole trader get an unsecured business loan?
Yes. Sole traders with an active ABN who meet the other basics can apply. A sole trader is already personally responsible for business debts, so there's no separate director guarantee in the way there is for a company.
Do unsecured loans cost more than secured ones?
Pricing reflects the whole picture, and security is one part of it. Every loan is priced on your business's individual situation, and our lending specialists look for the sharpest option available. If you have an asset that could support the loan, they can compare both routes with you.