The term ABN loan has become a common way to describe certain types of loans for ABN holders. Considering their popularity, here we’ll unpack the types of ABN holder loans, how you get them and how they can be used in business.

What is an ABN loan?

Simply put, it’s a loan for people who have an ABN (Australian Business Number) for conducting business, so people also call them ABN business loans to highlight this fact. You need an ABN to conduct business in Australia. A business can have an ABN and be GST registered or not – if it brings in under $75,000 each year, it’s not required to register for GST.

Types of ABN loans

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ABN car loans

These loans are for ABN holders wanting to purchase cars and other vehicles for business purposes. ABN holders registered for GST can claim back the GST portion when purchasing a vehicle. Other tax deductions include the instant asset write-off, which makes it possible to write off the entire cost of the vehicle in the financial year it was purchased.

Find out more about the Instant Asset Write-Off in 2023.

Some ABN car finance providers specialise in providing low-doc car loans or vehicle loans for business owners with lower credit scores.

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Equipment loans

You can purchase business equipment with business loans for ABN holders. This can include any type of machinery or equipment used for producing a product or delivering a service. One common way to finance equipment is to use the asset as collateral for a loan (known as a chattel mortgage). If the business can’t make repayments, the lender can liquidate the asset to receive the funds owed.

As with ABN car loans, tax breaks include claiming back GST and writing off the cost of the vehicle in the financial year it was purchased.

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Small business loan

A small ABN business loan can be used for a range of purposes, including purchasing inventory, paying staff, covering cash flow shortages, implementing marketing campaigns and more. These loans are secured (using property or other assets as collateral) or unsecured (not requiring collateral). Based on the loan amount, term and interest rate, small business term loans have a regular monthly payment for the life of the loan. Some lenders offer same-day ABN loans for businesses needing fast finance.

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Lines of credit

A small ABN business loan can be used for a range of purposes, including purchasing inventory, paying staff, covering cash flow shortages, implementing marketing campaigns and more. These loans are secured (using property or other assets as collateral) or unsecured (not requiring collateral). Based on the loan amount, term and interest rate, small business term loans have a regular monthly payment for the life of the loan. Some lenders offer same-day ABN loans for businesses needing fast finance.

The ABN loan application process

The application process for an ABN process will depend on the lender, but here are a few of the most common requirements for getting an ABN loan:

  • Credit check – this includes looking at your credit history and credit score
  • Financial history – lenders will ask for documents such as tax returns, bank statements and business profit and loss statements
  • The purpose of the loan and how much funding you are seeking.

The information you provide will determine whether you are approved for the loan and what the interest rate will be.

Moula unsecured business loans for ABN holders

Moula specialises in unsecured business loans for ABN holders. With a simple online process, you can apply in 7 minutes and get funds in 24 hours if approved.

Learn more about unsecured business loans from Moula and get an estimate of loan principal and interest loan repayments by using our business loan calculator.

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