poppyWhat is an unsecured business loan?
A secured loan is backed by an asset, usually property, that the lender can sell if the loan isn’t repaid. An unsecured business loan isn’t tied to a specific asset. The lender decides based on how the business trades, its cash flow and its history.
Poppy loans are generally unsecured. We don’t take a mortgage over your home or business premises, which means there’s no property valuation and less paperwork.
Unsecured doesn’t mean no commitment
Like most unsecured business lenders, we usually ask the business’s directors to sign a personal guarantee. That means if the business can’t repay, the directors are personally responsible for the debt. We explain exactly what the guarantee covers before you sign, and we recommend reading it carefully or asking your accountant or lawyer about it.
Unsecured vs secured business loans
| Unsecured (Poppy) | Secured bank loan | |
|---|---|---|
| Security | No property, usually a personal guarantee | Property or other assets |
| Paperwork | Bank data, ID and ABN | Financial statements, tax returns, valuations |
| Speed | Assessment based on bank data | Often weeks |
| Term | 3 to 24 months | Often several years |
| Cost | Higher | Usually lower |
Our guide on secured vs unsecured business loans goes into more detail.
Who unsecured business loans suit
- Businesses that don’t own property, or don’t want to put their home up as security
- Owners who need an answer faster than a bank can give one
- Short-term needs, such as stock, equipment or a cash flow gap, that will pay for themselves within months
Who can apply
- A registered business in Australia (with an ABN) or New Zealand (with an NZBN)
- Trading for 6 months or more
- Around $10,000 or more in monthly sales
- A business bank account with regular deposits we can see
- The loan is for a business purpose, not personal or household spending
How it works
- Check eligibility. Tell us about your business in a 3-minute form. No documents and no credit check at this stage.
- Connect your bank. Share read-only business bank data through a secure link, so we can see how you actually trade.
- Review your offer. You get one summary: the loan amount, the term, your weekly repayment and the total to repay, including all fees.
- Get the funds. Sign online and the money is paid to your business account.