Business loans in Australia cover a wide range of products, purposes and lender types. Understanding the difference between secured and unsecured lending, asset finance and business term loans, and traditional bank products versus specialist lender options — helps you make a better financing decision and access the lowest rate available for your situation.
Types of Business Loans in Australia
The main business loan categories available to Australian businesses are: secured term loans (backed by property, machinery or other assets), unsecured business loans (assessed on trading history and cash flow, no asset security required), equipment and asset finance (the loan is secured against the specific asset being purchased), invoice finance (advances against outstanding invoices), and business lines of credit (revolving facility drawn as needed).
Business Loan Rates in Australia (2026)
Business loan rates in Australia vary significantly by product type. Asset-secured equipment finance: 6.1 to 15 percent per annum. Unsecured business loans: 10 to 35 percent per annum depending on risk profile and term. Property-secured business loans: from 6 to 12 percent per annum. Invoice finance: 1 to 3 percent per invoice (effectively 12 to 36 percent annualised). Shorter-term working capital loans: fees may be expressed as a factor rate rather than an interest rate.
How Much Can You Borrow?
Borrowing limits for Australian business loans depend heavily on the type of product and security offered. Unsecured loans: typically $10,000 to $500,000 based on revenue and trading history. Asset-secured loans: up to 100 percent of the asset value, with large facilities to $10 million-plus. Property-secured business loans: based on the property value, with 60 to 80 percent LVR common. Low doc limits apply for applications without full financial documentation.
Banks vs Specialist Lenders
Major Australian banks offer business loans but apply strict eligibility criteria — typically requiring two or more years of financials, property security and a strong credit history. Specialist non-bank lenders — which Overdrive Funding works with — assess applications differently: using bank statements, ABN history and trading evidence to approve loans that banks frequently decline. Specialist lenders are often faster and more flexible than banks.
How to Get Approved
The key eligibility criteria for most Australian business loans are: active ABN (registered business), ideally 12 months or more of trading history, GST registration (for most asset finance), consistent bank statement trading activity, and a personal credit check. Full financials are required for larger amounts and some lenders — but many business loans up to $500,000 are available on a low doc basis.
Overdrive Funding compares business loan options across 80-plus lenders at no cost. Contact us for a free business loan comparison.