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Earlier, we unpacked five questions about the alternative finance landscape. But now we want to dive a little deeper and look at some alternative finance options. What are they? How do they work? Who can use them? Below, we set out two alternative finance options – unsecured online business loans and working capital loans.

1. Unsecured Online Business Loans

An online business loan works similar to a typical bank loan. The difference is online lenders are fast and flexible and will lend without personal security. That means you don’t need to own a home to access finance.

Generally a business can borrow as much as one to two times its monthly revenue. All online lenders will have different repayment structures, but with Spotcap you repay the loan over six or 12 months and there is no fee to pay out the loan early.

You should be aware that some lenders will charge a fee to apply, and another fee to pay out the loan early. So, always carefully read any terms and conditions, and select a lender that offers the best terms for your business.

Who Can Apply?

Although these loans suit all businesses, they are particularly useful for businesses that have trouble accessing finance for a bank. Spotcap welcomes borrowers from every industry and we’re happy to lend for any purpose.

Our business loans, however, are best suited for micro, small and medium sized businesses which have the following:

  • An ABN,
  • An Australian bank account,
  • Have been operating for twelve months; and
  • Minimum annual turnover of $50,000.

Because we lend against cash flow, online business loans aren’t suitable for startups. For more information on starting a new venture with limited funds, check out this blog post.

How Can I Apply?

Spotcap has a paperless, online application process that you can complete in as little as five minutes. After creating an online account, you just need to follow these three steps:

1. Enter some basic personal and business information;

2. Connect your business bank account; and

3. Connect your accounting software or upload your financial documents.

We can make a decision within hours and once approved, you can access the funds the next day. If you don’t need them right now, you have the option to leave the funds untouched until you do. You won’t pay an origination fee or any interest until you decide to draw down the funds.

2. Working Capital Loans

Working capital is how much your current assets exceeds your liabilities. Or, the amount of cash available for the daily expenses to run your business. A business’ working capital typically measures its efficiency and short-term financial health. A working capital loan can then help ease financial uncertainty and allow a business to continue to operate when cash is tied up in unpaid invoices or work in progress.

Who Can Apply?

These loans are best suited to all kinds of businesses that have trouble managing working capital. They are also best suited for seasonal businesses during off-peak months.

A business needs to satisfy the same criteria as for a small business loan to apply for a working capital loan with Spotcap. This means that it will need 12 months of operating history, an ABN, an Australian bank account and an annual turnover of at least $50,000.

How Can I Apply?

Every provider has its own application process but to apply for a working capital loan of up to $250,000 from Spotcap, you can just sign up here and follow the prompts to complete an application. We will get back to you in a few hours to tell you what you’re eligible for.


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