Comparing business loan quotes: what to check before you choose
Five checks from Paul Stone: the right term and speed, flexibility, who runs the lender, whose money it is, and the yes men.
To compare business loan quotes properly, line them up on total cost, term, settlement time and flexibility, not on the headline rate, and check the lender behind each quote: who owns and runs it, where its office is, and whether it lends its own money. Get every answer in writing before you commit.
Five checks before you choose a quote
- The loan fits the job. The term suits how you will repay it, and the settlement time matches your deadline. If you need the money this week, a loan that takes weeks to settle is not a cheaper option; it is no option.
- It is flexible. Things change quickly in business. Check what it costs to repay early and what happens if you need more time. Avoid agreements that penalise either.
- You know who you are dealing with. The lender's website should name who owns and runs it and publish a physical office address, not just a PO box or nothing at all.
- It is the actual lender. Ask whether the company lends its own money and makes the decision itself, or passes your file on to a funder you have not met.
- Beware the yes men. If every other lender is saying no and one suddenly says yes, but wants thousands of dollars upfront before it will proceed, walk away.
What to ask for in every quote
| Ask for | Why it matters |
|---|---|
| The total cost in dollars | A rate alone hides fees. The dollar figure is what you actually compare. |
| Every fee, and when it is payable | Upfront, monthly, valuation, legal, exit and extension fees can outweigh a rate difference. |
| Realistic settlement time | Ask what has to happen first: valuations, inspections, financials, a second approval. |
| Early repayment and extension terms | Your exit may come sooner or later than planned. Know the cost either way. |
| What you must provide | Tax returns, BAS and full financials take time to gather and can stall a quote. |
How to check a lender's credentials
- Search the business name and ABN on ABN Lookup, and the company and its officeholders on ASIC's registers.
- Check the office address on a map. A real lender has somewhere you can visit.
- Read independent reviews, not just the testimonials on its own site.
- Ask who decides your loan and whose money it is.
How HomeSec answers those questions
We are one of the oldest private lenders in Australia, lending to business owners across Australia since 2004. Our processes have got faster over the years with technology, but our commitment to service, transparency and honesty has never changed.
- Who we are: HomeSec Business Finance Pty Ltd, ABN 50 150 013 513, Level 1, Suite 6, 1488 Ferntree Gully Road, Knoxfield VIC 3180.
- Whose money: we lend our own capital, and a person makes every decision.
- Upfront: a small commitment fee, payable only once your loan is conditionally approved.
- Valuations: none — we don't use valuers, which saves time and money.
- Ongoing fees: none — no monthly, line or account-keeping fees.
- Repaying early or extending: no fee either way.
The cost of your loan is set out in writing before you commit, with no obligation to proceed. For a wider comparison of lender types, see compare lenders on what they require.
See if you qualify in sixty seconds
Three short questions, no credit check to apply and no financial statements. A Lending Manager reads it and calls you back with a real answer — not a call centre, not an algorithm.
That's the HomeSec Advantage.