Business Line of Credit
We're trusted asset finance brokers, helping ABN holders, businesses and owner-operators secure finance with fast approvals up to $500,000. Rather than relying on a single bank or dealership, we compare major banks and non-bank lenders, negotiating low interest rates, fees and repayments. From application to settlement, we manage the entire process for a hassle-free experience.
Free No-Obligation Quote
Compare options with 80+ lenders. No credit impact.
Business Line of Credit Made Easy
A Business Line of Credit is a flexible form of business finance that provides access to funds up to an approved credit limit. Unlike a traditional loan, you don't need to use the full amount at once — you can access funds when your business needs them.
As a revolving line of credit, you can draw funds, make repayments and redraw available funds throughout the life of the facility, subject to its terms and approved limit. Interest is typically charged only on the amount you use, although fees and other charges may also apply.
Businesses commonly use a line of credit to manage cash flow gaps and working-capital needs, such as paying suppliers or wages while waiting for customer payments, managing seasonal fluctuations, covering unexpected expenses, or taking advantage of business opportunities.
Example: If your business has a $20,000 line of credit and you draw $5,000 to pay suppliers, you would generally pay interest only on the $5,000 used rather than the full $20,000 limit. As you repay the amount drawn, those funds generally become available to use again.
A Business Line of Credit is best suited to businesses that want flexible, ongoing access to working capital without applying for a new loan each time funds are needed. Approval, credit limits, interest rates, fees, repayment requirements and security arrangements depend on the lender and your business's circumstances.
Benefits Of A Line Of Credit
A selection of options available for this type of finance.
Our Simple Process
Follow these steps to get your application underway.
- 01
Tell Us Your Needs
Share details about your business, cash flow patterns, and how you'd use the facility. We'll identify the right line of credit structure for your situation.
- 02
Compare Options
We compare business line of credit options from our panel of 80+ lenders to find the best available limit, rate, and terms.
- 03
Approval & Activation
Once approved, we manage the documentation and setup, so your facility is activated and ready to draw on as quickly as possible.
- 04
Ongoing Support
Draw on your facility as needed. We stay available for any reviews, increases, or future business finance requirements.
Industries
How Every Industry Uses a Business Line of Credit.
Reviews
What Our Clients Say
★★★★★ 5.0 / 5 based on our Google reviews
FAQ
Business Line of Credit — Frequently Asked Questions
Common questions about business line of credit — answered.
What is a business overdraft or line of credit?
It's a revolving facility attached to your business, giving you an approved limit you can draw on whenever you need working capital. As you repay, the funds become available again — so it's ideal for smoothing out cash flow gaps rather than funding a one-off purchase. Think of it as a flexible buffer that's there when you need it and dormant when you don't.
Do I pay interest on the whole limit?
No — you only pay interest on the amount you've actually drawn, not the full approved limit. If your facility is $100,000 and you've used $20,000, you're charged interest on that $20,000 only. That's what makes an overdraft such a cost-effective standby facility.
What's the difference between a secured and unsecured overdraft?
A secured overdraft is backed by an asset such as property, which usually means a higher limit and a lower interest rate. An unsecured facility needs no asset security and is quicker to set up, but generally comes with a smaller limit and a higher rate. Simon helps you weigh which trade-off makes sense for your business.
How large a limit can I get?
Unsecured overdrafts commonly range from a few thousand dollars up to around $250,000, while some lenders will go to $500,000+ for strong-revenue businesses without property security. Secured facilities can go considerably higher, depending on the value of your security. The right limit depends on your turnover, trading history and cash flow needs.
What does it cost beyond interest?
Most facilities carry a line or facility fee for keeping the funds available to you, plus a one-off establishment fee when the overdraft is set up. Unsecured rates typically sit higher than secured ones, reflecting the lack of security. We compare the total cost across a wide panel of lenders so you're not just chasing a headline rate.
When should I use an overdraft versus a term loan?
An overdraft suits short-term, fluctuating needs — covering payroll, stock or a slow-paying month — because you dip in and out as required. A term loan is better for a defined, larger purchase you repay over a fixed period. Many businesses run both, and Simon can help you structure the right mix.
Is your service really free?
Yes — you don't pay us anything; the lender pays us a commission when your facility settles. You get the benefit of us comparing a wide panel of lenders and Simon handling the legwork at no direct cost to you. We'll always be transparent about how we're remunerated.
Is a deposit required?
No deposit is required for eligible ABN holders with a strong credit and trading profile. A deposit can help improve your rate or secure approval if your credit profile is less straightforward.
Can I finance a used asset?
Yes. Finance is available for new and used assets. Age limits vary by lender and asset type. We identify the right lender for your specific asset.
How quickly can I get approved?
Most applications receive a decision within 24–48 hours. Once approved, your pre-approval is valid for 90 days.
Can I get low doc finance?
Yes. Low doc (no financial statements) finance is available up to $500,000 for eligible ABN holders. We typically need your ABN, driver's licence and bank statements.
Can I finance from a private seller?
Yes. We arrange finance for assets purchased from private sellers anywhere in Australia. The lender pays the seller directly on settlement.
Can I finance with bad credit?
Yes. Specialist lenders on our panel consider applicants with a range of credit profiles, including those who have been declined by banks.
What is the typical loan term?
Loan terms typically range from 2 to 7 years depending on the asset type, value and your cash flow requirements.
Can I refinance existing finance?
Yes. Refinancing can reduce your rate, lower repayments or release equity. We compare refinance options across 80+ lenders.
Are repayments tax-deductible?
Interest repayments under a chattel mortgage are tax-deductible. You can also claim depreciation on the asset and GST upfront. Speak with your accountant about your specific situation.
Is insurance required?
Yes. Most lenders require comprehensive insurance before settlement. We can assist with arranging cover.
Can I use a balloon payment?
Yes. A balloon payment reduces monthly repayments by deferring a lump sum to the end of the term. We size it to match the asset's expected resale value.
Does applying affect my credit score?
No. Submitting an enquiry with us doesn't affect your credit score. We only proceed to a formal credit application with your explicit approval.
What is the minimum loan amount?
Most lenders have a minimum of $10,000–$20,000 for asset finance. We'll confirm the minimum for your specific asset type.
Lending Panel
Access to 80+ Lenders In One Place
Overdrive Commercial Funding is directly accredited with all major banks, commercial non-bank, specialist and private lenders.
