Business growth finance, compared

The problem

Growth is paid for before it pays back.

A new contract can mean paying a supplier before your customer pays you. A fit-out needs a set amount, over a term matched to what you’re funding. And R&D has to keep moving while the ATO processes your claim.

The products

Five ways to fund what’s next.

A lump sum or a credit line

Business Term LoansA lump sum with fixed repayments, for growth, stock or working capital.
Business Line of CreditDraw funds as you need them and only pay interest on what you use.

Against a trade or a claim

Against property

Second MortgageRelease property equity for business capital, without refinancing your first mortgage.

Compared

Side by side, at a glance.

Term loan, line of credit, trade finance and R&D funding
	Term loan	Line of credit	Trade finance	R&D funding
Amount	$10,000 to $5,000,000	$10,000 to $500,000	$50,000 to $10,000,000+	$50,000 to $5,000,000, at 70 to 85% of your expected claim
Term	1 to 5 years, fixed repayments	Revolving, typically 12 to 36 months	Each drawdown runs one trade cycle, typically 30 to 120 days	A 3 to 12 month bridge, until the ATO settles your claim
Security	Unsecured options typically to $250k to $500k	Unsecured to $250k, on a director’s guarantee	The goods and their trade documents, plus a director’s guarantee	Often non-recourse: secured against the R&D claim itself
How you pay	Equal instalments of principal and interest	Interest only on funds drawn, not the full limit	At the end of the agreed trade cycle	From your refund when the ATO settles your claim
Suits	A business funding growth, stock or working capital	A business that pays wages, buys stock or waits on invoices in cycles	Importers, exporters and wholesalers funding purchase orders, locally or overseas	A company registered for the R&D Tax Incentive that wants to keep R&D moving while the ATO processes its claim
In full	Business Term Loans	Business Line of Credit	Trade Finance	R&D Tax Incentive Funding

Indicative, and subject to lender assessment.

Is it right for you?

When growth finance fits, and when it doesn’t.

Often fits

A set amount for growth, stock or working capital
Funding a purchase order or shipment
You need funds on and off, not one lump sum
Keeping R&D moving while the ATO processes your claim
Business capital from a property you already own

Usually not

Equipment you want to own, where a chattel mortgage may fit
Waiting on invoices you’ve already issued, where invoice finance may fit
A first R&D claim, as most lenders want a prior claim

Example, from our term loans guide

One renovation, two costs.

The need: $120,000 for a kitchen renovation and new equipment
Her bank’s offer: A 3-year unsecured loan at 14.5% p.a. with a 2% establishment fee
Its total cost: About $31,100 in total borrowing costs
Her Compare Report: Matched her with 11 lenders
The best fit: A second-tier lender at 10.2% p.a., secured by a GSA over business assets, with a 1.5% establishment fee
Its total cost: About $21,600 in total
The difference: She saved roughly $9,500

Based on a real Trade Funding client, with details changed for privacy. Rates are indicative, and subject to lender assessment.

Business funding, compared on real data, in three steps.

How It Works

Questions about growth finance.

Do I need to put up my house as security?

Not always. Unsecured facilities are typically available up to $250,000 to $500,000, though most lenders still ask for a director guarantee. Larger or lower-rate facilities usually need security: business assets, a general security agreement, or sometimes property.

What’s the difference between a term loan and a line of credit?

A term loan disburses a lump sum upfront with a fixed repayment schedule. A line of credit is a revolving facility - you draw funds as needed and pay interest only on the drawn balance, better suited to ongoing working capital than a single funding need.

How much can I borrow against my R&D Tax Incentive?

Most R&D funding providers advance 70 to 85% of your estimated R&D tax offset. The exact amount depends on your claim history, the quality of your R&D documentation, and the lender’s assessment of your claim. Your Compare Report shows what each lender offers.

How do you get paid?

Comparing costs you nothing. Not comparing can cost you plenty.

The headline rate rarely tells the whole story. Fees, charges and loan terms can add far more to what you repay. That’s why your Compare Report shows every cost we can identify side by side.

In most cases, the lender pays us, and only if you decide to proceed with their product offer. For more complex deals, or where the lender pays us little or nothing, we may charge a fee for our service. It doesn’t happen often, but when it does, it’s shown on your Compare Report and we’ll walk you through it before you decide.

No obligation to proceed, ever.

How We’re Paid →

No credit file impact · No cost to compare · No obligation

Or talk to us: 1300 161 641 · support@tradefunding.com.au

Growth finance, matched to what you’re funding.