Mozo

Mozo business loan eligibility and requirements

There is no universal Mozo turnover threshold, minimum trading period or credit-score requirement. The provider receiving your application sets those conditions. Do not treat an eligibility example in a general guide as acceptance criteria for every listed loan.

Mozo’s application guidance identifies business registration, trading history, revenue, financial records and business or director credit history as common assessment factors. Depending on the lender, prepare:

• Identification and an ABN or ACN, as applicable to your business structure.
• Recent business bank statements, financial statements and tax or Business Activity Statement records requested by the lender.
• The borrowing purpose, existing debt commitments and a cash-flow forecast or business plan where required.
• Details of assets offered as security and any proposed guarantors.

Assess repayments against cash remaining after operating expenses, tax and existing debts. A turnover figure alone does not show whether a loan is affordable.

Who should use Mozo to compare business loans?

Mozo may suit owners who can assess finance information themselves and want a starting point for comparing business borrowing options. Its value lies in researching different facilities before approaching providers.

Businesses needing help with a complex application, limited trading history or existing arrears may benefit from speaking directly with a lender or an appropriately experienced business-finance broker. Ask a broker about its lender coverage and charges.

Match the facility to the expense: equipment finance for a specific asset, invoice finance for unpaid customer invoices, or an overdraft or line of credit for recurring cash-flow gaps. Taking a larger term loan than needed can add unnecessary interest.

How Mozo’s business-loan comparison service works

From research to a lender’s decision

1. Define the requirement: Specify the amount, purpose, repayment period and whether you can offer security.
2. Research the options: Read Mozo’s business-finance information and any available listings. Check advertising labels, eligibility notes and the date of quoted figures.
3. Check the destination: Where a provider link is available, confirm who receives your enquiry. Mozo’s disclosures explain that an application is handled by the external provider.
4. Obtain and assess the offer: Supply the provider’s requested documents, complete its assessment process and review the written quotation and contract before accepting.

Mozo’s privacy policy explains that information may be passed to a third party when you request this through its services. Check the recipient’s privacy notice and any credit-check authorisation separately.

Approval and funding times

There is no single Mozo approval or funding deadline. Timing depends on the lender, documentation, credit assessment and any security arrangements. Ask when funds could actually be available after approval, rather than relying on an application-completion estimate.

Questions to ask before accepting a business loan

• Who is the lender, and is an intermediary charging a separate fee?
• What amount reaches my account after deductions, and what is the total scheduled repayment?
• Is interest calculated on the outstanding balance or the original advance? Is the quoted percentage annual, monthly or another period?
• Are repayments daily, weekly or monthly, and can the business meet them during slower trading periods?
• What assets or personal guarantees secure the debt? What happens if the business defaults?
• Is insurance compulsory? What are its premium, exclusions, excess and cancellation conditions?
• Does early repayment reduce the remaining interest or fixed charges, and are exit fees payable?

Mozo business loan comparison: advantages and limitations

• Free research service: Mozo states that users do not pay for its comparison service.
• Useful preparation: Its guides explain different finance structures and the information lenders may request.
• Limited market coverage: A search through Mozo does not establish that you have considered every suitable lender.
• Commercial influence: Advertising can affect prominence. Mozo’s disclosures explain that its initial sort order is not a ranking of product quality.
• Further verification required: A listing or calculation does not replace a lender’s assessment, personalised pricing or contract.

Mozo business loan rates, fees and total cost

Separate the cost of using Mozo from the cost of borrowing. Its comparison service is free to users, but the selected finance provider may charge establishment, ongoing, valuation, late-payment or early-exit fees. There is no Mozo-wide fee waiver or repayment policy.

A published annual interest rate is not automatically an all-inclusive APR or comparison rate. Where a provider supplies either measure, check what it includes and the assumed amount and term. Obtain the repayment schedule, total payable, net advance and any compulsory insurance cost in writing.

For cash-flow planning, use the actual payment dates. A monthly average can obscure pressure from daily or weekly deductions. The illustration below demonstrates a monthly repayment calculation only.

Illustration: $50,000 over three years

Original calculation, not a Mozo or lender offer: Borrowing $50,000 over 36 months at an assumed fixed interest rate of 12% p.a., calculated monthly on the reducing balance, produces repayments of approximately $1,660.72 per month. Total repayments are approximately $59,785.76, including $9,785.76 interest.

This assumes monthly payments in arrears, no fees, insurance, balloon payment, missed payments or early repayment. Totals use unrounded calculations; payment rounding may require a small final adjustment. Actual lender calculations and charges may differ.

Is Mozo useful for comparing business loans?

Mozo’s strongest feature is free access to finance information that can help business owners prepare a shortlist. Its main limitation is that the available selection and advertised figures cannot establish your best personalised offer. Compare written quotations for the same net borrowing amount and repayment period, then weigh total cost, payment frequency, security and early-exit terms.

Mozo business loan FAQs

Is applying through Mozo different from going directly to a business lender?

Mozo provides comparison information and referral links; the external provider assesses your application and supplies the finance. Mozo says users do not pay extra for its service, although it can receive referral payments. That does not establish that its route offers the lowest available price. Compare any direct and referred quotations using the same borrowing amount, term, security and fees.

Does Mozo compare every business lender, and are its first results the best?

No. Mozo’s commercial disclosures state that its coverage is incomplete and paid advertising can affect prominence. Its initial sort order does not indicate that one product is better than another. Check promotional labels and available filters, then compare shortlisted offers with providers outside the displayed selection. A low estimated repayment can also reflect a longer term rather than a lower total cost.

How should I compare borrowing limits and loan terms on Mozo?

Distinguish a term loan’s cash advance from a line of credit’s available limit: the same advertised amount can represent different access to funds and repayment obligations. Ask how much cash you receive after upfront deductions, whether repayments reduce the available limit, and whether repaid funds can be borrowed again. Compare the facility against your funding pattern, rather than choosing the largest advertised maximum.

How can I identify the cheapest business-loan offer found through Mozo?

Mozo has no own-product interest rate. Compare personalised offers for the same net advance and repayment period, including compulsory fees and any required insurance. A monthly flat rate and an annual reducing-balance rate are not directly comparable. If you expect to repay early, request a payout illustration for that date: having no early-repayment fee does not, by itself, explain how much remaining interest or other charges you would save.

Can Mozo help a start-up or business with bad credit find a suitable lender?

Its guides can help you research options, but inclusion on Mozo does not establish that a lender accepts start-ups, defaults or tax arrears. Before applying, ask about minimum trading history, revenue requirements and the specific credit issue involved. An established business with impaired credit and a new business without trading records present different assessment problems; a broad “business loans” listing does not resolve either.

What should I compare if a business loan is advertised as unsecured?

Check asset security and personal guarantees separately. A loan may require a director’s personal guarantee even when no specific property is offered as security, exposing personal assets if the business cannot repay. Ask whether the guarantee is capped, which debts it covers and when it is released. A slightly lower rate may be less attractive if it requires a materially broader personal commitment.

Can I compare Mozo business-loan options without multiple credit enquiries?

Reading comparison information is different from submitting a credit application. Before requesting personalised pricing, ask whether the next step creates an enquiry on the business’s or directors’ credit files. If the destination is a broker or referral service, establish which lenders may receive the application and when checks occur. Mozo’s privacy policy explains requested information-sharing, but it does not establish that every external provider uses a soft credit check.

Who handles a complaint about a loan found through Mozo?

Direct complaints about loan pricing, repayments or account administration to the lender; raise concerns about Mozo’s information or referral service with Mozo. Its contact page lists hello@mozo.com.au, while its complaints policy, reviewed on 1 October 2021, lists nothappy@mozo.com.au. Before borrowing, check the lender’s AFCA membership: access to AFCA’s small-business complaints service depends on membership and the complaint meeting its rules.

Should I refinance through another Mozo-listed provider if repayments become difficult?

Discuss repayment assistance with your existing lender before taking on replacement debt. Compare the current loan’s payout amount, any exit charges, new establishment costs and total future repayments. A longer replacement term may reduce each instalment while increasing the overall cost. Mozo does not manage hardship arrangements on the lender’s behalf. For free, independent and confidential financial counselling, contact the Small Business Debt Helpline on 1800 413 828.