Business loan

Westpac Unsecured Business Loan Review: Costs and Features

This loan does not require any assets as collateral, and therefore has lower loan amounts and higher interest. You can choose to pay fixed or variable interest rates, with the option to combine the two for the duration of the loan. You can also make interest-only or principal-and-interest repayments.

What features does the Westpac Unsecured Business Loan offer?

  • Unsecured loan. You will not have to provide loan collateral for this loan. This reduces the risk to your personal and business assets in the event of payment default. But it also means that your loan amounts are lower and the interest rates are higher.
  • To borrow $5,000. You can borrow from $5,000 Up to $75,000.
  • Quick turnaround times. If you’re an existing customer, you can get a decision in minutes.
  • Flexible repayments. Choose the repayment frequency that best suits your business. This can be weekly, fortnightly, monthly, quarterly or annually.
  • Combination of interest types. You can choose between variable and fixed or combined interest types.

How Much Does Westpac Unsecured Business Loan Cost?

Several fees are associated with the loan. These include:

  • Principal of the loan
  • Fixed or variable interest, with fixed rates starting at 9.82% per annum
  • Administration fees

This loan does not come with monthly fees. Other charges may apply.

What are the pros and cons of the Westpac Unsecured Business Loan?

Benefits

  • Flexible repayments. Choose the repayment frequency that best suits your business. This can be weekly, fortnightly, monthly, quarterly or annually.
  • Combination of interest types. You can choose between variable and fixed or combined interest types.
  • No risk of recovery. As the loan is unsecured, the risk to your personal or business assets is less than if the loan were secured.
  • Fast processing times. Existing customers can get a decision within minutes of applying.
  • No monthly fees. This reduces the cost of your loan.

The inconvenients

  • Superior interest. Compared to the secured option, this loan comes with a higher interest rate. This means a more expensive loan.
  • Lower loan amounts. The maximum you can borrow is $75,000
  • Shorter loan term. The maximum duration of an unsecured loan is 5 years, against 25 or 30 years for the secured option.

Am I eligible for Westpac Unsecured Business Loan?

To be eligible for this loan, you must:

  • Have traded for at least 12 months with a valid ABN or ACN; your business must also be registered for GST
  • Have an annual turnover greater than $75,000
  • Operate as an individual entrepreneur (aged 18 or over) to be a sole director company
  • Be an Australian tax resident, based, registered and operating in Australia
  • Use funding only for business purposes
  • Have less than $1 million in business loans with Westpac
  • Have up-to-date ATO payments, loan repayments and employee entitlements (including super)

How do I apply for the Westpac Unsecured Business Loan?

You can apply for the loan online through the Westpac website or submit an application. You may need to provide the following documents:

  • IDs, if you are new to the bank
  • Company registration documents
  • Financial state; this includes annual financial statements or tax returns
  • Individual proof of income
  • Expenses

You may also be required to provide:

  • Business activity statements or cash flow statements
  • Cash flow forecasts, management accounts, working capital statements, etc.
  • Forecast financial information

Have your documents handy to speed up the process.