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Small business loans provide fast, flexible funding for Australian businesses that need working capital. That might mean covering wages during a slow month, buying stock ahead of a busy season, paying suppliers, upgrading equipment, or taking on a growth opportunity that can’t wait for a bank’s 4 to 8 week approval process.
At Formation Finance, we arrange small business loans by looking at how your business actually trades: recent revenue, cash flow and trading history, rather than forcing every application through a property-security checklist. If you have an active ABN, at least 4 months of trading and $10,000+ in monthly revenue, you can likely qualify. That applies whether you’re a company, a partnership or a sole trader, and even if your bank has already said no. Borrow from $5,000 up to $500,000 unsecured.
| Key Features | Small Business Loan(Unsecured) | Business Line of Credit |
|---|---|---|
| Loan amount | $5k – $500k (up to $5M with guarantees) | Up to $750k |
| Term | 3 – 36 months | Ongoing / revolving |
| Repayment | Daily, weekly or monthly | Pay interest only on funds drawn |
| Security | None (director guarantee may apply) | None (director guarantee may apply) |
| Min trading history | 4 months | 6 months |
| Min monthly revenue | $10,000 | $20,000 |
| Interest rate from | From 12% p.a. (case-by-case) | From 14% p.a. (case-by-case) |
| Typical timeframe | funds same day at the fastest, typically within 1 to 2 business days | Indicative within 1 business day • Funds 1–3 business days |
All figures are indicative only and not an offer of finance. Availability, terms and timing are subject to lender approval, credit assessment and receipt of required documentation. For business and investment purposes only.
Repayment estimator
Estimate repayments on an unsecured small business loan from $5K to $500K. Move the sliders to see how the amount, term and rate change what you repay.
The calculator above tells you what a loan costs. The better question, and the one that decides whether a loan helps or hurts, is what your cash flow can comfortably carry. A loan sized to your revenue gets repaid without stress. A loan sized to what a lender is willing to approve can squeeze your margins for months.
Here’s what a typical loan looks like for a café turning over $45,000 a month:
| Loan | Term | Weekly repayment | Total repayable | Share of revenue |
|---|---|---|---|---|
| $40,000 | 12 months | ≈ $820 | ≈ $43,650 | ≈ 7.9% of monthly turnover |
At around 8% of monthly turnover, this repayment sits well within what a trading café can absorb, even through a quiet fortnight. As a rule of thumb, repayments under 10% of monthly revenue are comfortable for most hospitality and retail businesses. Between 10% and 15% is workable if your margins are healthy. Above 15%, borrow less or take a longer term. Run your own numbers in the calculator before you apply, and if you’re unsure, ask us. Telling a client to borrow less is part of the job.
Costs are simple and confirmed upfront: rates from 12% p.a. depending on your profile, an establishment fee of 1.5% to 4% of the loan amount, and no early repayment penalty. Some products discount your interest if you pay out early. Everything is put in writing before you accept, so there are no surprises after settlement.
We Need Just Three Things:
No property required, no business plan, no two years of financial statements. Lenders assess you on your bank statements and recent trading, so if your business has been turning over consistent revenue for a few months, you have what they need to make a decision.
Companies, partnerships and sole traders all apply on the same basis. We fund cafés, restaurants, retailers, trades, transport operators and service businesses every week, including plenty of owners whose bank has already said no. Imperfect credit and managed ATO debt are considered too. In non-bank lending, how your business trades today matters more than what happened on your credit file two years ago.
Under 4 months of trading or not yet generating revenue? A standard small business loan won’t fit yet, but private lenders loans against personal property security can be an alternative.
A family-run café in Melbourne’s inner north had a good problem: weekend queues out the door, and a kitchen that couldn’t keep up. A second coffee machine, a commercial oven upgrade and two extra weekend staff would fix it, but the bank wanted two years of financials and eight weeks to decide. Peak season was six weeks away.
Through Formation Finance, the owners secured a $45,000 unsecured small business loan, approved within one business day on the strength of their bank statements alone. The funds covered the new equipment, a minor fit-out to add eight more seats, and the first month of additional wages.
Six months on, weekend revenue is up 92% and overall monthly turnover has grown 38%, from $38,000 to around $52,500. The weekly repayment of roughly $640 represented about 7% of their monthly revenue at the time of borrowing, well within the comfortable range, and the extra trade covered it from the first month.
Loan type: Unsecured Small Business Loan
Amount: $45,000
Term: 18 months
Purpose: Kitchen equipment, fit-out, additional weekend staff
Result: Weekend revenue up 92%, overall turnover up 38% in 6 months
Speed matters when an opportunity has a deadline. A well-sized small business loan let this café say yes to demand that was already at the door.
01 Apply in minutes
A 10-minute online form. No tax returns or financials for loans under $150K.
02 Verify your bank statements
Through a secure online link. No printing, scanning or chasing paperwork.
03 Get funded
Same-day funding at the fastest, typically within 1 to 2 business days of approval.
Yes, on exactly the same basis as companies: active ABN, 4+ months trading, $10,000+ monthly revenue.
Possibly. Non-bank lenders weigh your recent trading performance more heavily than your credit file. Consistent revenue and clear repayment capacity can outweigh past defaults, though pricing may reflect the risk.
Yes, and it actually helps. Lenders read your bank statements, so card takings and Uber Eats or DoorDash settlements are all verifiable revenue. Cash that never hits the bank doesn’t count for assessment.
A standard small business loan won’t fit yet. Private lenders loans against personal property security can be an alternative for early-stage businesses.
