A range of business loans to meet a range of needs.
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- > Invoice Finance
- > Traditional Business Loans
- > Merchant Cash Advance
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- > Equipment Finance
AI Loans offers “Unsecured Business Loans” which can assist you through times of low cash flow in the business. As a sort term solution, AI Unsecured Business Loans credit facility is generally up to 12 months. No security (surety) is required to get a Business loan.
Loan Amount
$5 – $500k
Loan Term
3 – 24 Months
Advantages
Advantages- No security of property or other assets to obtain this loan
- Simple and quick online application processes
- We can help when Banks can’t – for businesses who do not meet the lending criteria
Disadvantages
Disadvantages- Higher rates, terms and fees
- Provision of a personal guarantee if amount you require is too high
- Unsecured business loans are higher risk for lenders, so higher interest rates for you
A Traditional Business Loan is a borrowing facility with a longer term and Personal assets and assurances from the Director/business owner are customarily used as security.
Loan Amount
$50k – $10m
Loan Term
1 – 10 Years
Interest Rate
2.97% – 12.83%
Advantages
- Lenders may offer you the choice of interest only or plus principal repayments
- Lenders will often offer a blend of variable and fix rates
- Repayment’s schedule can work to cash flow of your business. (Loan term is generally applied to life of the asset)
Disadvantages
- Minimum borrowing amount
- Approval process may take longer and usually available only to well established businesses
- Secure the loan with non-residential assets and you may incur higher interest rates
Think about it as a credit card. You can access funds in your account any time you need it. As a credit card, in most cases, interest only applies on the amount you withdraw and not the whole amount of funds available.
Loan Amount
$5 – $250k
Loan Term
3 – 12 Months
Access to Funds
1 – 2 Days
Interest Rate
14% – 30%
Advantages
- Simple and quick application process
- Flexibility to draw and repay funds as required
- Interest is only on what you draw, no minimum amount
Disadvantages
- Cancel at any time
- Make repayments on demand
- Facilities incur fees even when not used
- Terms and repayments vary
Invoice Financing or Factoring means your business sells your invoices to a lender. In factoring, your business can borrow up to 80% of the invoiced amount immediately and the lender becomes the collector of those invoices.
Loan Amount
$5 – $100k
Loan Term
30 – 180 Days
Access to Funds
1 – 3 Days
Interest Rate
3% – 5%
Advantages
- Short term finance issues can be managed with Invoice Finance and access to cash instantly
- Long periods of waiting time to receive payment of invoices is minimized
- Removes risks of late or non-payment of invoices
Disadvantages
- Can be more expensive than a loan finance
- Only 80% value of the invoice received
- Requires a minimum turnover and not available to new businesses or a proven sales history
Merchant Cash Advance is when a lender collects the repayments and offers you a lump sum in advance with an agreed percentage of your daily business gross income.
Loan Amount
$5 – $500k
Loan Term
1 – 2 Months
Access to Funds
Fast
Interest Rate
Typically 20%
Advantages
- No fixed interest payments or repayment schedule, only an agreed percentage of sales
- Simple and quick online application process
- Funds available quickly, within days
- Flexible repayments based on cash flow
Disadvantages
- ales history must be provided by the business to guarantee repayments
- More expensive than other financing options
- Available only to businesses making daily debit or credit card sales i.e., retailers, restaurants etc
- No regulation on lenders
Equipment finance is a fixed term loan that allows you to purchase equipment or machinery for your business. This financial product makes the Lender the owner of the asset until the term of the contract is completed.
Loan Amount
$5k – $2m
Loan Term
1 – 5 Years
Access to Funds
7 – 14 Days
Interest Rate
6% – 15%
Advantages
- Flexible repayment plan, works with your cashflow over a term of up to 5 years
- Faster and simpler to secure
- Claimable GST included
- Minimum or no deposit or up-front payments
Disadvantages
- Can be more costly than loan financing
- Higher interest rates
- High early-termination fees so no way out if the equipment is no longer needed
- Asset is owned by the lender with no equity built up so you do not own the equipment at the end of contract unless you make a final pay out
Frequently Asked Questions
In order to qualify for a small business loan, usually the business needs a trading history of at least six months, and a monthly gross income of at least $5,000. Needles to say, business has to be able to service loan repayments.
In order to qualify for a small business loan, usually the business needs a trading history of at least six months, and a monthly gross income of at least $5,000. Needles to say, business has to be able to service loan repayments.
In order to qualify for a small business loan, usually the business needs a trading history of at least six months, and a monthly gross income of at least $5,000. Needles to say, business has to be able to service loan repayments.
In order to qualify for a small business loan, usually the business needs a trading history of at least six months, and a monthly gross income of at least $5,000. Needles to say, business has to be able to service loan repayments.
In order to qualify for a small business loan, usually the business needs a trading history of at least six months, and a monthly gross income of at least $5,000. Needles to say, business has to be able to service loan repayments.
In order to qualify for a small business loan, usually the business needs a trading history of at least six months, and a monthly gross income of at least $5,000. Needles to say, business has to be able to service loan repayments.
In order to qualify for a small business loan, usually the business needs a trading history of at least six months, and a monthly gross income of at least $5,000. Needles to say, business has to be able to service loan repayments.
In order to qualify for a small business loan, usually the business needs a trading history of at least six months, and a monthly gross income of at least $5,000. Needles to say, business has to be able to service loan repayments.
Applying is free and it won’t impact your credit.
