Navigating Business Loans Made Easy

Most Common Business Loan Questions Answered

Are you a Small Business Owner trying to find out more about Business Loans? Not sure whether you need a Business or a Personal Loan?

Small businesses are the backbone of Australian economy. 2020 has not been very kind to the health of small businesses around the country. 2020 has been challenging to say the least. Starting with floods, then bushfires and then Covid-19, all taking a toll on the economy.

However, it’s not all bad news. With interest rates at its lowest and the Australian economy clawing its way back with a boost in retail spending, there is a lot to be optimistic about.

If you are a business owner, this is a great sign of recovery and one of the ways you can stay ahead of the game is by ensuring your business is set-up to capitalise on this positive trend. Getting a Business Loan is one way of doing it, but do you know the basics? Here’s our pick of a few commonly asked questions.


What is a Business Loan?

As the name suggests, a Business Loan is for starting-up, growing, operating or expanding a business. There are several different types of business loans available depending on the stage and needs of your business. Three most common types of Business Loans are:

Business Asset Loan/Equipment Loan

Usually, a secured loan where the asset/equipment you purchase is used as a security. A Business Asset Loan helps you purchase or upgrade any asset or equipment you need to accelerate business growth.

Cash Flow Loan

A short-term, unsecured loan designed to meet working capital needs for day-to-day operations. Cash Flow Loans usually come with higher interest rates as they tend to be unsecured.

Line of Credit

A Business Line of Credit is like having a business credit card. Business gets approved for a set-limit, but interest is only charged on the amount that is drawn/used.

Business Or Personal Loan. What's the Difference?

Are Business Loan Repayments Tax Deductible?

The simplest answer is, Yes, but partially. While a Business Loan repayment as a whole is not tax deductible, the interest part of the repayment is.


How do Business Loans work?

Answer to this question really depends on the type of Business Loan. However, it is not very different to any standard loan. A Business Loan can be secured or unsecured. Interest is charged at an annual rate but might be calculated daily. A Business Loan will also have the usual daily, monthly, annual fees such as establishment fees, administration and management fees.


Will a Business Loan affect my ability to get a mortgage?

Like all liabilities, a Business Loan will affect your credit history. Since most mortgage lenders assess your application on having a stable income, it is important that your business is in a healthy financial state to ensure it does not affect your ability to get a mortgage.


Business Loan vs Personal Loan. What’s the difference?

A Personal Loan is borrowed for personal use, to be spent on anything. People usually take-out Personal Loans in emergencies, to cover unexpected/unbudgeted costs or to purchase/upgrade or update something they want. Personal Loans can be secured or unsecured and are usually taken out over a set time. Personal Loans are based on your personal credit score. So, if anything goes wrong, your credit score will be affected.

A Business Loan is specifically intended to be used for business purposes only. The amount borrowed are usually higher and the application process can be a lot more intensive with lenders often asking for a business plan and historic Profit & Loss statements. Business Loans are a great way to build a business’s credit score based on their performance.


Can I use a Business Loan for personal use?

Technically, yes, especially if you are a sole trader. If you are a one-man-band, you do not even need a business account to get a Business Loan and can use the money as you deem fit.


Where can I get a Business Loan?

You can get a Business Loan from any bank or a financial institute. At, our team of expert brokers spend time to understand your business needs and goals and give you access to competitive rates from nation’s leading lenders. With over two decades of experience, our team will help you navigate through the application process and get you the loan that suits your individual business needs.

Apply Now to get the process started.

Car Broker Loans

Is there a difference between a Car Loan and a Personal Loan?

Whether you are out to buy a car or just curious, have you ever wondered about differences between a Car Loan and a Personal Loan? When you read about Personal Loan, they usually claim to be “for any purpose”. So why does one need a car loan?

What Are The Main Differences?

Car Loan Personal Loan
Restrictions Must be spent on car purchase For any reason (incl. buying a car)
Security/Collateral Required Secured against your car Secured or Unsecured
Credit Rating Medium/Bad Credit will suffice Usually required good credit
Buying new or used car Mostly for new cars Mostly for used cars
Amount borrowed Covers only the car value Borrow any amount
Interests Rates More competitive (car as security) Tend to be higher

Car or Personal Loan

Where can you get a Vehicle Finance vs. Personal Loan?

You can get both Vehicle Loan and Personal Loan from any financial institution like banks or other lenders. In addition to that, Vehicle Finance are also offered by car dealerships. So you can directly finance your car from the dealership you but it from.

How much can you borrow for a car?

In most cases, you can borrow up to 100% of the value of your car as part of your auto finance. Since your car will be used as a security for your loan, deposit is not required. However, it is always a good idea to have 20% deposit, if your financial situation allows for it.

So now that you know the basics, how do you choose?

The answer depends on your personal and financial situation.

  • If you are purchasing a secondhand car, it will usually be cheaper. However, it is better to get a personal loan to fund a secondhand car, because lenders may not want to fund an older car.
  • If you have bad credit, you are more likely to get approved for a car loan because technically you do not fully own your car until the final payment. So, if you default on your payments, the lender can repossess your car to recover any leftover debt.
  • If you are planning to do any enhancements or modifications on the car, a personal loan may cover the cost of the vehicle as well as the modifications, compared to a car loan.

What’s the bottom line?

Buying a car (or anything for that matter) is stressful enough. So, leave the sorting out of the finances to the experts. At we have a team of expert brokers that will guide you through the minefield of borrowing and will find you the best solution to suit your individual requirement.

Applying for a loan with is also simple, 100% online and FREE, so Apply Now and being in the experts.

smeg loans with

How the SME Guarantee Scheme Can Help Your Business

Everything you need to know about the SME Guarantee Scheme

Small and Medium Enterprises (SME) are the backbone of the Australian economy. From the café on the corner where you get your morning coffee to the summer dresses you buy at the markets, it’s the personal touches from these hard working people that makes all the difference.

Many small businesses across the country are facing challenges due to the Covid-19. It is challenging with businesses needing access to vital additional funds to get through and lenders reluctant due to the state of the economy.

To accelerate the economic recovery, the Government is supporting up to $40 billion of lending to SMEs, ensuring businesses can benefit from lower interest rates.

SME Guarantee loans with

What is SME Guarantee Scheme?

The SME Guarantee Scheme is part of an economic package released by the Government to support Small to Medium Enterprise (SME). The Scheme allows access to low-cost loans for businesses who need a line of credit to continue their operations effectively.

How does the Scheme work?

So the Government has guaranteed 50% of new loans, but what does that actually mean? The SME Guarantee Scheme allows eligible lenders to access a $90 billion dollar funding pool at a low interest rate.  This has a two-fold effect for the economy.

  1. It keeps interest rates low for borrowers (small businesses).
  2. It encourages the flow of credit to continue, encouraging lenders to continue lending.

Who is eligible?

The Scheme includes Small and Medium Enterprises (SME), including sole traders and not-for-profits who meet the following criteria:

  • Hold an ABN
  • Less than $50 million annual turnover
  • Need assistance with current and upcoming cash flow, including working capital, liquidity and operating expenditure
  • Not receiving any other Government Scheme Loan

What is the point?

The scheme is designed to:

  • Keep small businesses running during a difficult economic environment
  • Give lenders confidence to extend finance

Rather than giving a grant or handout, the SME Guarantee Scheme works to help small business and support financial institutions by encouraging partnerships to bolster the economic performance in the short-term and setting it up for the long-term.

What does this mean for you?

If you are a small business owner you may have felt the effects of the coronavirus lockdown. Rather than closing your doors or accessing high-cost funding like credit cards, a low-cost business loan can keep your business thriving while the economy is recovering. It could even assist you to expand your business for the future.

You keep mentioning low rates. What exactly will it cost?

The cost of a loan on the SMEG will vary depending on your circumstances. Based on the lenders we partner with, the average interest rate is 5.5%

Some lenders are charging up to 18%, so be wary and do your research, or drop us a line and we can find the best value lender for you

How do I access the SME Guarantee Scheme?

The first thing to note is that SME Guarantee is not a grant. It is accessible through participating lenders, rather than applying through the Government.

The best option is to find a broker that can connect you to the best lender suited to your business needs. As a partner of many lenders participating in the scheme, we can find you the best rates and conditions. Check out our article 3 reasons you should use a broker.

What about responsible lending?

There is an interesting point written into the SME Guarantee Scheme that is worth mentioning. The Guarantee exempts lenders from responsible lending guidelines for 6 months that the Scheme is running. This means you can gain access to finance quickly and efficiently when you need it.

In reality, most lenders will not be changing their guidelines, it just means that the process will not be bogged down in unnecessary paperwork.

asset vs line of credit

What types of loans are on offer?

Under the SME Guarantee Scheme, small businesses can obtain finance to assist with cash flow or purchase of a new asset. Cash flow loans will be useful for businesses that have seen a temporary drop in revenue during lockdown. Most of the time these loans will come in the form of a line of credit. Asset finance is a lump can be used to obtain a new asset (such as equipment or machinery) to expand your business – a great idea while interest rates are low.

What is the difference between Asset Finance and a Line of Credit?

A line of credit loan gives a business access to a capped fund. They can draw from it if needed and will only be charged interest on the amount they have drawn

This is advantageous because you are not paying interest on money you haven’t yet drawn, yet the reassurance of having credit when you need it is there.

Asset finance is a lump sum to pay for the acquisition of new equipment, renovations or other one-off costs. They can be used to build your business and are best taken out when interest rates are low.

How much can I borrow?

SME Guarantee Scheme has been introduced in two phases.

Phase 1 – Ending 30th September, allows:

  • Maximum total size of loans of $250,000 per borrower
  • No Repayments for first 6 months
  • 3-year loan term
  • Unsecured finance, meaning that borrowers will not have to provide an asset as security for the loan

Phase 2 – Starting 1st October 2020 till 30th June 2021, will expand to:

  • Up to $1 million per borrower
  • No Repayments for first 6 months
  • 5-year loan term
  • Secured or unsecured

If you are interested in applying for a loan under the SME Guarantee Scheme, send us an enquiry. We are proud to be working directly with a range of participating lenders and can help you navigate the Scheme, finding you the perfect solution, tailored to your needs.