Unsecured business loans are a relatively new option for businesses that require access to some extra funds. The obvious benefits of this type of finance are the speed in which access is granted to the finance, with a simplified application process. This may allow a business to quickly take care of cash flow, cover urgent expenses, or make the most of an opportunity.

In recent years, a number of agile, financial technology (fintech) lenders have entered the finance market in Australia. These more non-traditional lenders are able to turn around approvals and deposit cash into your account in as little as 24 hours. Because they are unsecured the application is simpler, and the loan amounts are often smaller – usually anywhere from $5,000 to $250,000. It also means there is greater risk to the lender so the interest rates may be relatively higher, and the loan terms a lot shorter, with principal and interest repayments generally on a weekly basis but sometimes even daily.

While the access to funds can be handy, it is important to weigh up the repayment terms and amounts in ensuring this short-term cash injection helps your business over the short and medium-term.