Property backed business loans - Sparrow Loans

Commercial loans

Secured commercial loans for your business

  • From 6.5% p.a.
  • Fast approvals
  • NSW, VIC, QLD

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Our commercial loans get you the cash you need quickly!

Creditors hassling you daily? Are you drowning in nasty bills? ATO after you? Need an extra boost of cash to upgrade equipment or buy inventory?

We lend to businesses and individuals that require short term funding secured against Australian real estate. We take a common-sense approach to lending and can often assist when the banks cannot. We understand that our clients don’t want to jump through hoops and deal with big banks when looking for finance. That’s why at Sparrow Loans, we have streamlined this process into 3 simple steps so that our clients can spend more time running their business rather than spending countless hours on paperwork. Our lending specialists can provide you with tailored property-backed secured business loans to help you grow your business and manage your cash flow.


The Sparrow Loans Advantage

A smooth experience from start to finish with zero risks for all commercial loans.

Buisness loans by Sparrow Loans

Responsiveness

We assess your application quickly and will come back to you within two business days. That's right; you will have an answer within 48 hours. Money problems are solved very quickly.
Buisness loans by Sparrow Loans

Support

Whether you are a business borrower or a referral partner, you will have a dedicated relationship manager to help you through the application process.
Buisness loans by Sparrow Loans

Trust

We work hard to give you a smooth application process with clear requirements. You can be sure that our secured business loans are ready to settle when your loan is approved.

Key Features for our Commercial Loans

  • Interest Rates from 6.5% p.a.
  • Up to 75% LVR
  • No minimum term
  • No application or commitment fees
  • Approval within 2 business days
  • NSW, VIC & QLD Property accepted
  • Flexible Repayments available
  • Quick-release of funds

Are you a business owner needing extra working capital with no hidden fees, surprises or hassle?

To get started you need
An ABN or ACN | At least 12 months in business | Australian based

Our Commercial Loans

buisness loans - sparrow loans

How can you use our commercial loans?

As a business, you can come across investment opportunities to help you take your business to the next level, whether it is a new warehouse facility, a new office space or an expansion. Sparrow Loans can help you secure a property-backed business loan to secure your new investment.

As a private lender, we can approve your loan within 48 hours and settle within a few weeks.

Fulfil your business vision knowing that you have your funding sorted!

We can also help you with a property-backed business loan to upgrade the property and put some finishing touches right before selling your commercial property. With our capitalised property-backed business loans, you can plan and match your sales schedule to your loan term. You can take advantage of our flexible repayment structures to make your property look its best to achieve the best price in the market.

If you are looking to upgrade your fit-out or expand your business using equipment finance, you might find some requirements for the equipment’s age and condition that limit your choices. Releasing your property’s equity can be one way to overcome any restrictive conditions.

If you have any significant equipment upgrades, expansions, construction loans, fit-outs or equipment loan refinancing on the horizon, Sparrow Loans is ready to help.

Also, see our bridging loans if you need funding to purchase a commercial property.

What is a Small Business?
  • Our flexible repayment option

Our flexible repayment options allow you to capitalise all costs into your loan facility, which doesn’t affect your current cash flow and business planning. You can use our property-backed business loans to finance your CapEx as well. If you have any upgrades, renovations, fit-outs or non-structural improvements on the horizon, Sparrow Loans are ready to help.

  • Choose your loan term

Whether you need a loan for one month or 12 months, we give you the flexibility to choose your loan term. Your company must be at least 12 months old to access our property-backed short term business loans. You must register for GST and domiciled in Australia with Australian directors. We lend against property located in New South Wales, Victoria and Queensland. We can consider property in metro locations up to 75% LVR and regional locations up to 65% LVR.

Commercial Loans - apply in 3 easy steps

Step 1

Buisness loans by Sparrow Loans
Complete our loan application form online – this takes about 5 minutes

Step 2

Buisness loans by Sparrow Loans
Get a Letter of Offer with our rates, fees & any additional information required to proceed to unconditional approval

Step 3

Buisness loans by Sparrow Loans
Receive your funds within 2 to 3 business days from unconditional approval
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Commercial Loan Requirements

  • Current ABN
  • Current Australian business address
  • Registered for GST
  • All directors and owners of the business to be Australia-based
  • Must be in business for at least 12 months
  • Property security
  • Loan Serviceability (if the interest is not capitalised within the loan facility)
  • Clear exit strategy

Commercial Loan FAQ’s

Have a question about commercial loans? See some of our most common FAQ’s many customers ask us.

How is Sparrow Loans different to a standard bank loan?

Getting a business loan can often be a complex process, especially if you’re getting your loan through a typical bank. With a bank loan, you have to complete piles of paperwork overseen by bank staff who tend to take their time, including a business plan and past trading history; a complex task. And they still may decline your application. I bet you didn’t know that most banks reject about 74% of business loan applications! 

Sparrow Loans offers small businesses a fighting chance in the lender space by providing flexible lending options. Our main difference over banks is that we can often get you funding when banks have said no. Plus, we have a super-fast turnaround time. You can have your loan approval within 2 working days.

Also read: Bank vs. Non-Bank Lenders – a dummies guide

What is a secured business loan?

According to Wikipedia, with a secured loan, the borrower pledges an asset (such as plant, equipment, stock or vehicles) against the debt. In the case of Sparrow Loans, we use your property ( domestic or commercial ) as security against the loan. If the loan is not repaid or there is an issue with the monthly interest repayments the secured asset may be used to repay the loan ( which happens in very rare cases ).

Are there any hidden fees with your secured business loan?

Many Australian business lenders will charge fees, such as administration fees, direct debit fees, and early repayment fees. Even worse, they will never disclose their fees upfront or tell you about these fees once you sign on the dotted line. These fees can all add up and have a significant impact on your business cash flows.

At Sparrow Loans, we have absolutely no hidden fees, and best of all, there are no surprises down the track. We also want to clarify that there are no upfront fees which means there is no risk for you when applying for your secured business loan.

What do I need to be eligible for a commercial loan?

Your company must be at least 12 months old to access our loans. You must register for GST and domiciled in Australia with Australian directors. We lend against property located in New South Wales, Victoria, and Queensland. We can consider property in metro locations up to 75% LVR and regional locations up to 65% LVR.

How much can my business borrow?

Sparrow Loans’ secured commercial loans are generally between $200,000 and $2,500,000. Our ideal loan size is between $500,000 and $1,000,000. Our secured business loans are suitable for small businesses or medium-sized businesses.

How much does a comemrcial loan cost?

The exact cost of your business loan will be dependent on a few factors such as the strength of the business, the location and status of the underlying security property, and the experience of the Directors. Our interest rates start from 6.50% per annum. There are other fees involved which include an Establishment Fee of 2.2% inclusive of GST when you accept and sign our loan offer (this is paid upon the disbursement of funds), a Legal Fee which is a third-party fee that can range from $2,000 to $5,000 depending on the complexity of the loan, and a Property Valuation Fee which is a third-party fee which starts from $500 and can vary depending on the location or use of the property and the valuer. The Establishment Fee and Legal Fee can be capitalised into the loan facility.

How long does the whole process take?

Sparrow Loans can approve your loan within 48 hours and give you the peace of mind you need to know you have your finance covered. Once your loan is approved you can proceed with the valuation report. On average, the valuation process may take anywhere between 2 to 5 business days with some commercial valuations taking longer. Most residential valuations take approximately 2 to 5 business days to complete with commercial valuations taking a bit longer. After the valuation report is completed, funds can be released to you within 2 business days (or the same day in some cases).

How do you assess my commercial loan application?

We assess your business based on its credit history, the strength of the business director/s, the business’ and director/s’ current financial position, and the underlying property security offered.

Do you check my business or personal profile with a credit agency?

Yes, we do. This is only done after you accept our loan offer and give us your consent to check your credit history.

What happens if my business is not required to register for GST?

We generally only lend to businesses that are registered for GST. If you are not registered for GST, we may still be able to assist you on a case-by-case basis. Please submit your loan application and we will let you know if we are able to help in your circumstances.

Can I speak to someone about my commercial loan if I have any questions?

Yes, our Lending Specialist – Ulrika Lobo – is available to help you with any questions you may have. She can be reached on 1800 258 374.

How long does it take to access the funds?

Once all information is provided and you accept our Letter of Offer, the funds can be transferred within 2 days of receiving the property valuation report.

Can I access extra funds if I need to, during the loan term?

Yes, it is possible subject to a simple assessment of the upper limits of the loan parameters.

What secured business loan terms are available?

We can offer any length of term up to 12 months. We can also offer a rollover option where you may be able to extend the loan term subject to a simple loan assessment.

What can the commercial loan funds be used for?

You can use Sparrow Loans to fund any business purpose including bills, salaries, stock purchases, capital projects, refurbishments, and small equipment purchases. You can learn more about our different secured business loans – tax debt business loans, working capital business loans, debt consolidation business loans, small business loans and short term business loans – on our website.

What documents are needed to process a commercial loan application?

The application process is simple, easy, and can be completed online. When applying for a loan you will need to provide details of the borrowing entity, the statement of position for the borrower and guarantor/s (Assets and Liabilities Summary), and a comprehensive exit strategy. You will also need to provide a snapshot of your ATO and depending on your application requirements, may need to provide your two most recent BAS along with a data scrape of your most recent six-month trading bank statement. Depending on the specific requirements of your loan facility there may be additional requirements on a case by case basis. Where there are additional requirements, you will be advised in writing.

Have questions? Our friendly team is available on 1800 258 374  weekdays 9 am – 7 pm AEST