Unsecured Business Loan Calculator

Last updated: May 2026. Reflects current Australian metrics.

Forecast the true cost of short-term cash flow finance. Built specifically for high-rate, fast-approval loans common in the Australian fintech space.

Cash Flow Loan Details

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Unsecured loans often carry rates between 12% and 25%+.
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Typical unsecured terms are 6 to 36 months.
Many fintech lenders automatically deduct weekly or daily.
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Estimated Repayment

per week

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Amount Received in Bank $0
Upfront Fee Deducted $0
Total Interest Over Term $0
Total Repaid to Lender $0

Unsecured Cash Flow Loans in Australia

In recent years, the Australian business lending landscape has been transformed by 'fintechs' and alternative online lenders (such as Prospa, Moula, and OnDeck). These lenders specialise in fast, unsecured cash flow loans for small to medium enterprises (SMEs).

Why use an unsecured loan?

Traditional banks usually require 'bricks and mortar' security (i.e., your family home) to approve a business loan. This process takes weeks and puts your personal assets at risk. Unsecured fintech lenders rely purely on your business's bank statements and accounting software data to approve a loan. The process is incredibly fast—often funding within 24 hours—and does not put a mortgage over your house.

The Catch: Rates and Terms

Because the lender has no security to fall back on if your business fails, they take on massive risk. To compensate, they charge significantly higher interest rates (often 15% to 25% or higher) and only lend over short periods (typically 6 to 24 months). Furthermore, they often charge a flat 'Origination Fee' (e.g., 2.5% of the loan amount) which is deducted from the cash you receive upfront.

Daily and Weekly Repayments

Unlike traditional monthly bank loans, alternative lenders usually structure their loans with daily or weekly repayments. They automatically direct debit a small amount from your business transaction account every business day. This smooths out your cash flow burden, rather than hitting you with a massive bill at the end of the month, but it requires consistent daily sales revenue to maintain.

Related Calculators

Business Loan Equipment Finance Invoice Finance

Read official business finance guidelines at Business.gov.au.

10 Frequently Asked Questions

1. What is Equipment Finance?
Equipment finance (like a chattel mortgage) allows a business to borrow money to buy an asset, using the asset itself as security.
2. How does Invoice Financing work?
Invoice financing lets you borrow money against the amounts due from your customers, freeing up immediate cash flow.
3. What is an Unsecured Business Loan?
A loan that doesn't require collateral. It usually has higher interest rates and shorter terms due to the higher risk for the lender.
4. Can I claim the interest on a business loan?
In Australia, interest incurred on loans used strictly for business purposes is generally tax-deductible. Check with the ATO.
5. What is the instant asset write-off?
An ATO measure allowing businesses to claim an immediate deduction for the business portion of the cost of an asset in the year it is first used.
6. What is a line of credit?
A flexible loan where you are approved for a certain limit but only pay interest on the funds you actually draw down.
7. Are Directors Guarantees required?
Most lenders will require a personal guarantee from the company directors, even for unsecured business loans.
8. What is a Chattel Mortgage?
A commercial loan product where the financier advances funds to purchase an asset, taking a mortgage over it as security.
9. How do lenders assess business loans?
Lenders look at trading history, cash flow, BAS statements, and business credit scores.
10. Does a business loan affect my personal credit?
If you provide a personal guarantee or are a sole trader, defaults will negatively impact your personal credit file.