Which business loan fits? (loan finder)
Best place to start
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General information only, not financial advice.
Quick answer
This business loan finder asks what the money is for, whether you own property, whether customers owe you on invoices and whether you have credit issues or a recent bank decline. It suggests the best type of finance to start with, a second option worth a look, a likely speed and a page to read next. It's a starting point for your research, not an approval or a quote.
Key points
- Four questions, six purposes and one clear starting point
- The quiz checks your answers in a fixed order, so the purpose of the money usually wins
- Equipment and business purchases point to purpose-built finance regardless of credit history
- Property plus urgency, tax debt or credit issues points to caveat loans and second mortgages
There are dozens of business loan types in Australia, and the names don’t help: chattel mortgage, caveat, debtor finance, line of credit. This finder cuts through that. Four questions about your situation, and it tells you where to start reading and which option to compare it with.
The questions it asks
What is the money for? Choose one of six:
- Cash flow or working capital
- A tax bill or ATO debt
- Equipment or vehicles
- Stock or a big order
- Buying a business or property
- Something urgent this week
Own property? Yes or no, meaning property you could offer as security.
Do customers owe you on invoices? Yes if you invoice other businesses on payment terms.
Any credit issues or a bank decline? Defaults, judgments, a low score or a recent “no” from your bank.
How it picks an answer
The finder checks your answers in a set order and stops at the first rule that matches. Knowing that order explains most results.
| Order | If you chose… | Best place to start | Also worth a look | Likely speed |
|---|---|---|---|---|
| 1 | Equipment or vehicles | Equipment finance | Chattel mortgage or lease | Days |
| 2 | Buying a business or property, with property | Property-secured business loan | Vendor finance | Weeks |
| 2 | Buying a business or property, no property | Business acquisition loan | Vendor finance | Weeks |
| 3 | Cash flow or stock, and customers owe you | Invoice finance | Business line of credit | Days |
| 4 | Urgent, tax, or any credit issues, with property | Caveat loan or second mortgage | Private first mortgage | Same day to 48 hours possible |
| 5 | Tax bill, no property | ATO debt refinance (unsecured) | ATO payment plan | Days |
| 6 | Anything else | Unsecured business loan (non-bank if credit issues) | Business line of credit | Days, or same day for smaller urgent amounts |
The fourth result, Read next, is a link to the matching page on this site: equipment finance, buying a business, invoice finance, caveat loans, ATO tax debt business loans or unsecured business loans.
Three results that surprise people
“I have bad credit, but it still said equipment finance.” Equipment and vehicle loans are secured by the asset itself, so a lender has something to fall back on. Credit history still matters, but it doesn’t change which product fits the purpose.
“I own a house, but it sent me to invoice finance.” Rule 3 sits above rule 4. If you have unpaid invoices and need cash flow or stock money, those invoices are usually the most natural fit, because the facility grows as you invoice more. For a one-off need, a property-secured loan may still cost less overall, so compare.
“I picked urgent and have invoices, but got unsecured.” Invoice finance only triggers for cash flow or stock. An urgent need without property falls through to an unsecured loan, where smaller amounts can sometimes fund the same day.
Want a person to sanity-check the result? Send through your answers; enquiring doesn’t touch your credit file.
Example: a landscaping business after a bank decline (illustrative)
A landscaping business in Perth needs $45,000 by Friday to pay a supplier and hold a big commercial contract. The owner has equity in their home, invoices residential clients on the day, and the bank declined an overdraft increase last month.
- Purpose: Something urgent this week
- Own property: Yes
- Invoices owed: No
- Credit issues or bank decline: Yes
Result: Caveat loan or second mortgage, also worth a look: Private first mortgage, likely speed: Same day to 48 hours possible, read next: caveat loans.
That makes sense. The deadline rules out slower bank processes, and the home equity offers security that a decline doesn’t cancel out. Before signing anything, the owner should compare the total dollar cost with a second mortgage quote, and check how quickly they can realistically repay.
What the finder doesn’t ask
Four questions keep the quiz quick, but lenders weigh far more. The result won’t reflect:
- How long you’ve traded. Unsecured lenders commonly set a minimum trading period, often somewhere between six and twelve months; newer businesses should read about business loans with an ABN under 12 months.
- Turnover and bank statement health. Regular deposits, few dishonours and a steady balance often matter more than a credit score for online lenders.
- The amount. The finder doesn’t ask how much, so a large equipment purchase or business acquisition may still need property or full financials.
- Existing debts. Several online loans running at once can rule out another unsecured facility, even with a clean credit file.
Treat the answer as the first product to research, then test the details against these factors.
Where to go after the finder
- Check your timing with the funding speed calculator.
- If the bank has said no, read declined by the bank for what to do next.
- For a fuller comparison of purpose-based options, the guide to choosing finance for your business purpose goes deeper.
- Healthy margins make every lender more comfortable: test yours in the margin and markup calculator.
Turn a quiz result into a real option
Four answers narrow the field; a conversation finishes the job. Tell us what the finder suggested along with the amount and your timing. The form is roughly a minute of typing. Sending it doesn’t trigger any credit enquiry, and it stays with our team rather than being handed out to lender after lender. Someone real works through your circumstances and calls to discuss them. Be upfront about any credit history the bank flagged; that candour is what lets us match you to an option you can realistically secure.
Frequently asked questions
How does the business loan finder decide?
It runs through a fixed order of rules. Equipment purchases come first, then buying a business or property, then invoice-backed cash flow and stock needs, then property-secured options for urgent, tax or credit-affected situations, then tax debt without property, and finally unsecured loans.
Why did it suggest invoice finance when I own property?
If customers owe you on invoices and you need cash flow or stock funding, the finder treats your unpaid invoices as the most direct source of funding. Invoice finance grows with your sales and doesn't need property. A property-secured loan may still be cheaper for a one-off need, so it's worth comparing both.
Does a bank decline or bad credit change the result?
It can. With property, credit issues steer the result towards a caveat loan or second mortgage. Without property, the suggestion becomes a non-bank unsecured loan instead of a mainstream unsecured one. For equipment or a business purchase, the asset or deal drives the answer.
Is the suggestion a recommendation to apply?
No. It's a sensible first place to look based on four answers. Lenders also consider turnover, time trading, the amount, your bank statements and tax position. A specialist can check whether the suggested option actually suits your numbers.
What if my bank is happy to approve the loan?
Take that seriously. Banks are often the cheapest source of business finance when you meet their criteria. The finder is most useful when the bank has said no, is too slow, or the loan type you need isn't something your bank offers.