When your business needs funding, choosing between a traditional bank and an alternative lender like Velociti Capital can be challenging. Here’s a practical comparison to help you decide.
Key Differences at a Glance
| Feature | Velociti Capital | Traditional Banks |
|---|---|---|
| Approval Time | 2-4 hours | 2-4 weeks |
| Funding Speed | Same day - 24 hours | 1-2 weeks after approval |
| Security Required | No | Usually yes (property/assets) |
| Loan Amounts | $10,000 - $350,000 | $10,000 - $5M+ |
| Credit Requirements | Flexible | Strict (650+ score typically) |
| Application | 5-min online | Often requires branch visit |
| Documentation | 6 months bank statements | Extensive (tax returns, financials) |
| Interest Rates | Higher | Lower |
| Early Repayment | No penalties | Often penalties apply |
Speed and Accessibility
Velociti Capital
- Application: 5 minutes online
- Decision: 2-4 hours on business days
- Funding: Same day to 24 hours
- Process: 100% digital, no branch visits
Perfect for time-sensitive opportunities where waiting weeks isn’t an option.
Traditional Banks
- Application: 1-2 hours (often in-person)
- Decision: 2-4 weeks minimum
- Funding: 1-2 weeks after approval
- Process: Multiple departments, branch visits typically required
Security and Collateral
Velociti Capital
- No property or asset security required
- Not asset backed loans up to $350,000
- Based on business cash flow and performance
- No personal assets at risk
Traditional Banks
- Property security almost always required
- Collateral typically includes residential or commercial property
- Personal guarantees from directors
- Your home or business premises at risk if business struggles
Eligibility Requirements
Velociti Capital
- Australian ABN (6+ months trading)
- $5,000+ monthly revenue
- 6 months bank statements
- Australian business bank account
- Flexible on credit history
Focus: Current business performance over past credit issues.
Traditional Banks
- 2+ years trading history typically required
- Strong credit score (650-700+)
- Detailed financial statements and tax returns
- Business plan with projections
- Property for security
- Substantial deposit (10-20%)
Focus: Credit history, assets, and extensive documentation.
Interest Rates and Costs
Velociti Capital
- Higher interest rates (reflecting not asset backed nature and fast processing)
- Transparent fee structure disclosed upfront
- No early repayment penalties
- No hidden fees
You’re paying for speed, convenience, and accessibility without collateral requirements.
Traditional Banks
- Lower interest rates (secured by property/assets)
- Multiple fees: application, valuation, legal, establishment
- Often early repayment penalties
- Monthly account fees
Lower rates but longer approval times and collateral requirements.
Who Each Lender Suits Best
Choose Velociti Capital If You:
- Need funding within 24-48 hours
- Don’t have property to secure a loan
- Have been trading 6+ months with steady revenue
- Want a simple online process
- Have less-than-perfect credit but strong cash flow
- Need flexibility in repayment terms
Choose a Traditional Bank If You:
- Need $350K+ funding
- Can wait 2-4+ weeks for approval
- Have property available for security
- Have excellent credit (700+ score)
- Need long-term loans (5+ years)
- Want the absolute lowest interest rate
Common Questions
Can I have both a bank loan and a Velociti loan?
Yes, many businesses use both strategically. There’s no restriction on having multiple lenders.
Will applying with Velociti hurt my bank application chances?
No. Our applications don’t negatively impact bank applications.
Can Velociti help if I’ve been declined by a bank?
Yes. We focus on current cash flow and performance rather than just credit history or property ownership.
Are there hidden fees?
No. All fees are disclosed upfront before you sign anything.
Can I pay off the loan early?
Yes, with no early repayment penalties.
What if my business is seasonal?
We understand seasonal businesses and assess annual patterns, unlike banks that often decline based on revenue fluctuations.
Making Your Decision
Choose Velociti Capital for speed, accessibility, and no-collateral financing when you need funding quickly and don’t have property security. Choose traditional banks for large amounts, long terms, and the lowest rates when you have time, excellent credit, and property to secure the loan.
Many successful businesses use both strategically - banks for major long-term investments and Velociti for working capital, inventory, and urgent opportunities.
Ready to apply with Velociti Capital? Get a decision in 2-4 hours with our simple online application.
Ready to Fund Your Business Growth?
Get approved in 24 hours with loans from $10K to $350K. No property security required.
