Managing your cash can be the most difficult task when you’re running a small business. Many small businesses go under simply because they’re unable to do this effectively. You’ll need a strong cash flow to pay suppliers and keep on top of day-to-day and unexpected expenses.

Often, small business owners will have enough finance to get their business off the ground, but they don’t have sufficient finance to fund their company’s growth. This is where a small business loan will often be needed. In Australia, one in three business owners need a business loan of between $100k and $250k, while one in ten need up to $1 million or more.

Business owners use loans for various reasons, including:

  • Staffing
  • Marketing
  • Lease agreements
  • Product developments
  • Innovation and new technology

You have a few different options when it comes to business loans and unsecured loans. The first step is to answer a few important questions. Once you have a good idea of your financial situation, you can make the best choice for your business:

  • How much money will you need?
  • What is this money for?
  • How quickly does this money need to be in your account?
  • How soon can you pay the money back?
  • What will you need to use as collateral for the loan?

Here are a few options for small business loans:


There are many different types of loans available, depending on your financial situation. These vary in interest rates, types of interest, loan terms, amounts, and fees and security. Before you apply for any loan, it’s important that you check all disclosure information about the product and read any small print.


Overdrafts are an excellent option for many small businesses. These are just like personal overdrafts, only they’re attached to a business account. Usually you’ll need to provide some form of security, along with a credit assessment based on the viability of your business. This will give you working capital before you begin making enough money to keep your business going.

Line of credit

A line of credit is a great way to ensure you have enough money for the day-to-day running of your business. These loans provide you to draw on a balance up to your approved limit. These are secured loans, and often business owners will need to provide a mortgage as collateral. You’ll also usually need to make regular payments which would cover any fees and interest on the loan.

Unsecured Loans

Unsecured business loans are completely unsecured by any asset. That means that you won’t be risking the loss of your home or other asset if you’re unable to pay the loan back. However, the less security your lender has, the more you’ll be paying in interest and other fees.

As you can see, you have many options when it comes to small business loans. Are you considering taking out a loan for your business? Let me know in the comments below.