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Unsecured Business Loan | Interest Rates

16 Mar Today's
best rate
Finance Equipment From
{{Advertised Rate Only}} %
*The Interest Rate is calculated on a Secured Loan for business use, effective 23/03/2023 and subject to change. WARNING: The interest rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts may result in a different interest rate.

Compare Unsecured Loans Interest Rates with other Loans

Interest rate comparison chart allows you to quickly and easily compare rates on unsecured loans against those of other lending products. Enter your loan amount and preferred term and see the repayments for each loan. Great for comparing loans and planning your loan.

Loan Amount
Loan Term
New Equipment Loan
2.79% Starts At
Monthly repayment
Used Older Secured Equipment Loan
4.50% Starts At
Monthly repayment
Business Loans - Unsecured
7.99% Starts At
Monthly repayment
Business Loans - Secured
2.95% Starts At
Monthly repayment
Overdraft - Non Bank
9.95% Starts At
Monthly repayment
Chattel Mortgage
2.79% Starts At
Monthly repayment
Operating Leases
4.60% Starts At
Monthly repayment
Commercial Hire Purchase
2.79% Starts At
Monthly repayment
Rent To Own
9.95% Starts At
Monthly repayment
Loan Product Interest Rate
Starts at:
Monthly Repayment
New Equipment Loan 2.79%
Used Older Secured Equipment Loan 4.50%
Business Loans - Unsecured 7.99%
Business Loans - Secured 2.95%
Overdraft - Non Bank 9.95%
Chattel Mortgage 2.79%
Operating Leases 4.60%
Commercial Hire Purchase 2.79%
Rent To Own 9.95%
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Disclaimer: This interest rate chart is provided for comparison purposes only. The interest rates displayed may vary from the interest rate which may apply to any offer for an unsecured loan you are offered. The fees and charges applicable to lending have not been accounted for in the calculating function. This is not an application form for an unsecured loan. The results calculated do not indicate an offer or an approval. The repayments on any offer you may be made may differ from those calculated.

Unsecured Business Loan Interest Rates

Unsecured Commercial Loans are provided for purposes where security in the way of a physical asset or goods, ie a car or equipment, is not available. This type of loan may be utilised for a range of uses including short-term cash flow shortages, capital injection, training and marketing programs and many others.

As no security is offered against the loan, it is considered a higher risk loan than a secured loan. Higher risk loans attract a higher interest rate but each loan is considered on its individual merits.

The interest rate on an unsecured business loan may be at a fixed or a variable rate depending on the individual lender.

Business Loan Calculator

While there may be fairly similar interest rates advertised by the lending sector for various loan categories, each lender derives their own interest rate schedule based on a number of factors which include:-

  • The individual lender’s capability and cost of acquiring funds.
  • If the lender is active in a particular loan category.
  • Risk assessment of a particular loan category.
  • Global availability of lending funds and the effects of international monetary markets.

In offering an interest rate on a specific loan to a specific business, lenders will assess individual applications based on a range of factors:-

  • Risk assessment of the individual business. Long-established businesses with good trading history will usually be assessed as a lower risk than more newly established
  • Credit score. The credit score of the business and with very small businesses possibly also the business owner’s score, will be taken into the account.
  • As a general guideline - the better the credit score, the better the interest rate offered.
  • The purpose of the loan.
  • The loan term. Unsecured loans can be offered for as little as 3 months to cover short-term requirements.

Securing a Low Business Interest Rate

To improve their prospects of securing a lower interest rate on a high-risk unsecured loan, businesses may take a number of measures which include:-

  • Preparing thorough and comprehensive documentation which verifies their good trading history and future prospects.
  • Present documentation which clearly demonstrates how the commercial enterprise will repay the loan.
  • Attend to any issues which may improve the credit score. Bad debts and some other entries may be removed after a certain period but this usually entails applying to have these entries removed.
  • The owner providing a personal guarantee.
  • Engaging the services of a broker to negotiate with the lender to secure a better interest rate.

We have connections with both lenders that offer Unsecured Business Lending and brokers that work to achieve lower interest rate loans.

Connect with us for lenders and brokers that may be able to assist you with achieving a better interest rate for your Unsecured Loan


Unsecured Business Loans Interest Rates FAQs

These kinds of loans are not secured against goods or physical assets as such. Therefore the interest rates are higher than for secured loans. The interest rates can vary depending on a number of factors so we have addressed some queries to ally your uncertainties.

What interest rate do I use in the calculators?   

The interest rate currently available is displayed on the interest rate comparison chart. This is the lowest current achievable rate for this loan category. The rate you are offered for your specific unsecured loan may vary from the advertised rate but this rate can be used for the calculator purposes. In arriving at the interest rate they will offer on unsecured loans, lenders will consider and assess a number of factors. They may include but not be limited to: the credit profile of the applicant; the purpose of the loan; the current interest rate market and economic environment; the availability of any form of loan security by way of assets or property offered by the borrower; and the lender’s involvement in the borrower’s industry sector.

Is the interest rate fixed or variable?   

Interest rates on unsecured loans may be fixed or variable. Typically the interest rate is fixed. This means the interest rate will remain the same over the term of the loan. The fixed interest rate and the fixed loan term combine to result in a fixed repayment schedule. This can be attractive to many as it allows for better cash flow planning. With some loans and lenders a variable interest rate may be offered on unsecured loans. This means the rate may change when the official cash rate changes. The RBA sets the official cash rate at their monthly board meetings. When an increase or decrease in the official rate is declared, this may or may not flow through to changes on individual loans such as unsecured commercial loans. That decision is at the discretion of the lender.

Can I use other lower interest rate loans for my unsecured business purposes?    

They can be used for a range of purposes. Primarily these are for the purchase or payment of intangible goods or services or goods which are not acceptable to be offered as security against a loan. If the purpose of the loan is for cash flow shortages other loan options may be available. These include a Business Overdraft which can be established as an ongoing source of credit to a commercial organisation. Overdrafts are available through banks and non-bank lenders. Another alternative is the Invoice Funding or Debtor Lending option. This is lending for organisations that experience slow paying customers which place pressures on the cash flow. If you require assistance to cover an extremely large premium on an insurance policy, Insurance Premium Funding is also available for consideration.

How is the interest rate on unsecured commercial loans determined?   

Interest rates on all types of loans are determined in a similar way. Individual lenders establish their interest rates based on a number of factors including their interest in and level of activity in lending particular industry sectors. Their rates will reflect their confidence or level of interest in a sector. The purpose of the loan is a consideration in determining an interest rate as is the credit profile of the applicant. For unsecured commercial loans the applicant, the purpose of the loan, the credit situation and their industry will all be considered in establishing the interest rate offered.

How can I get the cheapest interest rate on an unsecured loan?   

The credit profile of the loan applicant is a major consideration in regard to interest rates. If you or your organisation have credit issues, then fixing these issues on your credit history may increase your chances of achieving a cheaper interest rate. Another option is to engage the services of a broker to source your loan. Compared with undertaking this task yourself, brokers can provide significant benefits including sourcing the cheapest interest rates across all types of loans. Brokers with accreditation with multiple lenders including industry only accessible sources have the resources to achieve cheaper interest rates.
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