When Australian business owners search for 'unsecured cash flow finance', they're often surprised to discover it's not a single product — it's an entire category of lending solutions. Each product has a different structure, repayment model, cost and ideal use case. This guide breaks down the key unsecured cash flow finance products available in Australia, so you can find the right fit for your business.
1. Unsecured Business Term Loans
The most straightforward product. You borrow a lump sum and repay it over a fixed term — typically 3 months to 5 years — with fixed weekly or monthly repayments. Best for: businesses that need a one-time cash injection for a specific purpose (tax debt, stock purchase, equipment, expansion). Rates: 8%–25% p.a. Loan sizes: $20,000–$5,000,000.
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2. Unsecured Lines of Credit
A revolving credit facility — similar to an overdraft but purpose-built for business. You're approved for a credit limit and can draw down and repay as needed, only paying interest on what you use. Best for: businesses with ongoing, unpredictable cash flow needs. Rates: 10%–28% p.a. Limits: $20,000–$500,000.
3. Invoice Finance (Debtor Finance)
Invoice finance advances you up to 85% of the value of your outstanding invoices — immediately, rather than waiting 30, 60 or 90 days for your customers to pay. The facility is technically secured against the invoices themselves (not property), so it's often classified as unsecured. Best for: B2B businesses with large debtor books. Cost: 1.5%–4% per 30 days.
4. Unsecured Overdraft Facilities
A buffer attached to your business bank account that you can draw on when your balance runs low. Non-bank lenders offer unsecured overdraft facilities up to $250,000 without property security. Best for: businesses that need a safety net for day-to-day operations. Rates: 12%–22% p.a.
5. Revenue-Based Finance
A newer product where repayments are linked to a percentage of your monthly revenue rather than a fixed amount. In good months you pay more; in lean months you pay less. Best for: businesses with seasonal or fluctuating revenue. Cost: typically a flat factor rate (e.g. 1.3x the borrowed amount).
Unsecured term loan
Line of credit
Invoice finance
Overdraft
Revenue-based finance
| Product | Best For | Typical Size | Speed |
|---|---|---|---|
| Unsecured term loan | Lump sum needs | $20k – $10m | Same day |
| Line of credit | Ongoing working capital | $20k – $500k | Same day |
| Invoice finance | B2B with large debtors | Up to 85% of invoices | 24–48 hours |
| Overdraft | Day-to-day buffer | Up to $250k | Same day |
| Revenue-based finance | Seasonal businesses | $50k – $500k | 24–48 hours |
Not sure which unsecured cash flow finance product suits your business? Overdrive Commercial Funding will assess your situation and recommend the right structure. Call Simon on 0417 000 316 or get a free quote online.
