Unsecured business loan rates in Australia vary widely — from as low as 8% per annum for well-established businesses with clean credit, to 28% or higher for impaired credit or very new ABN holders. Understanding what drives your rate, and how to present your application to get the best outcome, can save you tens of thousands of dollars over the life of a loan.
Current Unsecured Business Loan Rate Ranges (2026)
Established business, clean credit, strong revenue
Solid business, minor credit issues
Good revenue, impaired credit
New ABN (6–18 months)
Short-term facility (under 12 months)
| Borrower Profile | Rate Range | Typical Loan Size |
|---|---|---|
| Established business, clean credit, strong revenue | 8% – 14% p.a. | $100k – $10m |
| Solid business, minor credit issues | 14% – 20% p.a. | $50k – $2m |
| Good revenue, impaired credit | 20% – 28% p.a. | $20k – $500k |
| New ABN (6–18 months) | 18% – 28% p.a. | $10k – $150k |
| Short-term facility (under 12 months) | Factor rate: 1.1x – 1.5x | $20k – $500k |
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What Factors Affect Your Unsecured Business Loan Rate?
- ABN trading age — longer history = lower rate
- Monthly revenue — higher and more consistent = lower rate
- Credit score — clean history significantly reduces rate
- Average bank balance — healthy balances signal financial stability
- Industry — some industries are considered higher risk by lenders
- Loan term — shorter terms often carry higher rates
- Loan purpose — some lenders price differently for tax debt vs working capital
- Lender type — non-bank specialists offer competitive rates against major banks
How to Get the Best Unsecured Business Loan Rate
The single most effective way to secure a competitive rate on an unsecured business loan is to use an experienced broker who can present your application professionally across multiple lenders simultaneously. Brokers like Overdrive Commercial Funding know which lenders offer the sharpest rates for your specific business profile — and can negotiate on your behalf in ways that individual applicants simply can't.
Other factors that help: keeping your bank statements clean in the 3 months before applying, ensuring BAS is up to date, paying down any outstanding ATO debt before applying where possible, and avoiding multiple lender credit enquiries (which damage your score and your rate).
Overdrive compares 80+ lenders to find the most competitive unsecured business loan rate for your profile. One application, no credit impact, same-day decisions. Call Simon on 0417 000 316 or apply online for a free quote.
