Major bank unveils unsecured SME loan

by Miklos Bolza15 Dec 2017
National Australia Bank (NAB) has launched the $100,000 unsecured QuickBiz Loan for small business customers.

In an announcement yesterday (14 December), the lender said the new product was designed to help business owners grow without the need for security requirements such as real estate or savings.

The loan is currently only available through NAB’s proprietary channel with customers applying via a digital application process. The application and decision process takes up to 10 minutes with borrowers able to upload personal and business information direct from MYOB, Nero and all other accounting software. If approved, cash will be transferred in 24 hours.

Fast easy access to cash is critical for small businesses to grow, said NAB executive general manager business direct and small business, Leigh O’Neill.

“There is often a perception that access to credit is difficult without a property or other major asset to secure against. That’s why we’ve responded by placing more emphasis on the strength of the business rather than traditional physical bricks and mortar, and we’re doing this at a fair and competitive price.”

NAB developed its own in-house unsecured online lending tool, QuickBiz, which launched in June 2016 and initially offered loans up to $50,000.

The new changes will see QuickBiz extended to $100,000. This is an expansion of the bank’s current unsecured financing facilities which includes an overdraft and credit card.

“Six months after a QuickBiz loan application, just under half of our customers grew their business turnover by greater than 10%. This confirms we have an important role to play by offering finance to businesses with good prospects – it’s the kick-start they need.”

Annualised interest rate charges for this unsecured SME loan come in at 13.85% with a 12, 24 or 36-month term.

Eligible borrowers will be sole traders, partnerships, companies or trustees with 12 months of business financial data from their accounting software.

Related stories:

SME lending a “river of gold”

Wealth franchise adds SME lender to panel

NAB streamlines loan process for brokers