Quick answer
Unsecured growth funding lets a trading business borrow for expansion without offering property as security. Amounts typically range from $5,000 to $500,000 and are sized mainly on turnover and business bank statements. It suits growth moves with a payback of months to a few years — marketing, hires, stock, smaller equipment and contract gaps — and is often arranged as a term loan or a line of credit.
Key points
- No property security required — the business's trading is what's assessed.
- Typically $5,000 to $500,000, sized on turnover and bank statements.
- Suits faster-paying growth moves; terms are usually shorter than secured loans.
- Available as a fixed loan or a line of credit you draw as needed.
- Typical range
- $5,000 to $500,000
- Sized on
- Turnover and business bank statements
- Structures
- Term loan · line of credit
- Credit
- Past issues and ATO debt considered case by case
Not every growth move needs the family home behind it. For trading businesses with steady turnover, unsecured growth funding can pay for the campaign, the hire, the stock or the smaller piece of equipment — assessed on how the business trades rather than what property it owns.
How is unsecured growth funding assessed?
Without property security, the lender looks at the business itself:
| What’s assessed | What it shows |
|---|---|
| Turnover | The scale of the business and its capacity to repay |
| Business bank statements | Consistency of income, cash buffers, dishonours and existing repayments |
| Time trading | Track record — longer histories generally open more options |
| Existing debts | How much of cash flow is already committed |
| Tax position | ATO debt isn’t an automatic barrier; it’s considered case by case |
| Credit history | Past issues are considered in context |
| Purpose | What the funds are for and how the move pays back |
Amounts typically range from $5,000 to $500,000, sized mainly on turnover and bank statements. The Reserve Bank’s October 2025 Bulletin noted that unsecured finance had reportedly become more readily available to small businesses as competition among lenders increased.
Which growth moves suit unsecured funding?
Unsecured funding suits moves that pay back relatively quickly and don’t need very large amounts:
- Marketing pushes on proven channels — see borrowing for marketing
- New hires carried through their ramp-up — see finance to hire staff
- Stock for new ranges or bigger orders
- Smaller equipment, used equipment and installation costs
- Contract working capital for shorter gaps
- Technology implementation and training
For large or slow-maturing moves — a second site, an acquisition — property-secured funding is often the better fit, because the longer term keeps repayments below the move’s profit.
Term loan or line of credit?
| Unsecured term loan | Line of credit | |
|---|---|---|
| How funds arrive | Lump sum up front | Draw as needed, up to a limit |
| Repayments | Fixed schedule | Based on what’s drawn |
| Best for | A defined move with a known cost | Stop-start needs: campaigns, stock, contract gaps |
| Watch | Paying for funds before you need them | Line fees and the discipline to repay |
Many growing businesses use both: a term loan for the defined purchase and a line of credit for the ramp-up. See a line of credit for growth.
A worked example (illustrative)
A bathroom-supplies retailer turning over about $2.4 million a year wants to add a new premium tapware range and back it with a three-month advertising campaign. The range needs $85,000 of opening stock and the campaign $30,000. Total: $115,000.
The business has no property to offer, but eighteen months of steady bank statements and a clean repayment history on an existing equipment loan. An unsecured term loan of $85,000 over 18 months covers the stock, while a $40,000 line of credit covers the campaign and any reorder, drawn only when needed.
The owner expects the range to add $38,000 a month in sales at a 42% gross margin — about $16,000 of gross profit — once the campaign has built awareness. With a quoted total cost of finance of $11,000 on the term loan, the average repayment is about $5,300 a month, covered around three times at full speed. Model your own version in the Growth ROI calculator, and if it checks out, see what unsecured funding your business could qualify for.
What will a lender ask for?
- Business bank statements, commonly for six months or more
- ABN or ACN and identification for directors
- Details of existing finance and repayments
- The purpose of the funds (quotes help)
- For larger amounts, BAS or financial statements
Unsecured facilities often need a personal guarantee from the directors. Ask about guarantee requirements, fees and early repayment options when comparing offers, and compare by total cost of finance in dollars.
How do you keep repayments in step with growth?
- Match the term to the payback. Unsecured terms are often shorter, so they suit faster-paying moves.
- Don’t draw early. With a line of credit, draw when costs arrive, not before.
- Plan the ramp-up. Build the early shortfall into the amount or use a flexible limit.
- Keep a buffer. Repayments on unsecured facilities are often weekly or fortnightly — make sure your cash cycle supports that rhythm.
When is unsecured funding not the right fit?
- The amount is large relative to turnover. Unsecured limits are sized on trading; a big move may need property security.
- The payback is long. Shorter unsecured terms can squeeze cash if the move takes years to mature.
- Trading history is very short. Options narrow for businesses without a track record.
- Cash flow is already stretched. Frequent repayments on top of existing commitments can add pressure.
In those cases, a business growth loan secured against property, a staged plan or a smaller first step may work better.
Grow on the strength of your trading
If your business trades consistently and you have a growth move that pays back, unsecured funding can get it moving without putting property on the line. Tell us your turnover, what you’re funding and how much you need.
It takes about a minute to send, and the first step involves no credit check. We don’t queue your details up for a list of other lenders; a specialist reviews your trading and calls you. Accurate answers on turnover and time trading let us find the right fit without back-and-forth.
Frequently asked questions
How much can I borrow unsecured to grow my business?
Unsecured options for trading businesses typically range from $5,000 to $500,000. The amount depends mainly on turnover, the consistency of deposits in your business bank statements, existing debts and how long the business has been trading.
What do I need for an unsecured business expansion loan?
Usually recent business bank statements (often six months or more), your ABN or ACN, identification, details of existing finance and a clear purpose for the funds. Larger amounts may need financial statements or BAS.
Is unsecured growth funding more expensive than a secured loan?
Often, because the lender has no property to fall back on. But unsecured funding is frequently used for shorter periods, so the total cost of finance in dollars can still be modest. Compare the total cost against the growth move's payback.
Do I need a personal guarantee for unsecured funding?
Many unsecured business facilities require a personal guarantee from the directors, even though no property is taken as security. Ask about guarantee requirements when comparing options.
Can I get unsecured funding with bad credit or ATO debt?
Past credit issues and ATO debt are considered case by case. Consistent recent trading and a clear explanation of what's changed help. Honest answers on the enquiry form allow a proper match.