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

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 ).

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.

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.

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.

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.

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

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.

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.

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.

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

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.

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.