Securing the right business loan can make all the difference between surviving and thriving. Whether you’re expanding, managing cash flow, paying tax debt, or purchasing an existing business, understanding the different types of business loans available in Australia will help you choose the right option for your goals. Here’s a complete guide to the most common types of business loans, how they work, and what they’re best used for.
Business loans are available for all industries and business types — whether you’re new, established, an independent ABN holder, sole trader, or self-employed. Regardless of your size or experience, there’s a finance solution designed to suit your needs.
At Overdrive Funding, we support Australian businesses across transport, construction, manufacturing, forestry, mining, medical, mechanical, retail, landscaping, cleaning, and all other professional services. Our mission is to help every business access transparent and affordable finance that supports long-term growth whether for cash flow, equipment, vehicles, business purchases, or tax debt relief.
A secured business loan is backed by an asset such as vehicles, property, or machinery. Because the lender holds collateral, these loans generally offer lower interest rates, longer terms, and higher borrowing limits.
Key benefits:
Common uses: Expanding operations, refinancing, purchasing equipment, or buying vehicles.
Unsecured loans don’t require collateral. Approval is based on your financial history, cash flow, and credit rating. While interest rates can be higher, they’re often faster to secure and require less paperwork.
Key benefits:
Common uses: Working capital, marketing, staff wages, or short-term operational costs.
This specialised form of lending allows businesses to buy or upgrade essential equipment without upfront costs. The equipment itself usually acts as security for the loan.
Key benefits:
Common uses: Financing trucks, utes, excavators, forklifts, or construction machinery.
This type of finance is popular in construction, manufacturing, logistics, forestry, and agriculture industries.
Designed for businesses that rely on vehicles, this loan type can cover a single car or an entire fleet. The most common structures are chattel mortgages, finance leases, and novated leases.
Key benefits:
Common uses: Business vehicles, vans, trucks, and delivery fleets.
A business overdraft / line of credit gives you flexible access to funds when you need them. You only pay interest on the amount you use, not the entire credit limit.
Key benefits:
Common uses: Short-term cash shortages, inventory purchases, or bridging gaps between payments.
Also known as debtor finance, this option helps you unlock money tied up in unpaid invoices. Lenders advance a portion of the invoice value up to90%, giving you immediate working capital.
Key benefits:
Common uses: Businesses with long client payment terms (e.g., 30–90 days).
An overdraft is linked to your business transaction account, allowing you to spend more than your current balance up to a set limit. It’s a great safety net for managing unexpected expenses.
Key benefits:
Common uses: Covering temporary cash shortfalls, urgent supplier payments, or seasonal expenses.
This loan is tailored for franchisees, helping them buy into a franchise network or expand their existing operation. It can cover upfront costs, fit-outs, and working capital.
Key benefits:
Common uses: Buying a franchise, store refurbishments, or business expansion.
If you’re looking to buy, build, or refinance business premises, a commercial property loan can help you secure ownership and build long-term equity.
Key benefits:
Common uses: Offices, warehouses, retail stores, or investment properties.
If your business owes money to the ATO, a Tax Debt Loan can help you manage repayments without disrupting operations or risking penalties. This type of finance restructures your tax debt into manageable payments, giving your business room to recover and grow.
Key benefits:
Common uses: Settling BAS debt, PAYG obligations, overdue ATO payments, or restructuring liabilities.
At Overdrive Funding, we only work with lenders who take a long-term view of your business — providing fair terms that stabilise your finances and preserve your credit profile.
A Cash Flow Loan provides fast access to working capital when your business needs it most. These loans are designed to cover day-to-day expenses or bridge funding gaps caused by delayed invoices or seasonal fluctuations.
Key benefits:
Common uses: Paying suppliers, covering wages, purchasing stock, or managing unexpected expenses.
At Overdrive Funding, we carefully assess your financial position to match you with trusted lenders that provide responsible cash flow funding — not short-term lenders that can harm your credit profile.
If you’re looking to buy an existing business or expand your operations through acquisition, a Business Purchase Loan can provide the capital you need to make it happen.
These loans are designed to finance the purchase of an established business, franchise, or professional practice, allowing you to step in with minimal disruption and immediate cash flow potential.
Key benefits:
Common uses: Buying an existing business, purchasing goodwill, acquiring franchises, or expanding into new markets.
At Overdrive Funding, we assess your goals and business background carefully, ensuring you’re matched with a lender that supports growth and sustainability. Our brokers ensure the finance structure protects your credit file and supports future commercial lending opportunities.
At Overdrive Funding, we take a lot into consideration before recommending any lender. Unlike many brokers who push clients toward high-risk cash flow lenders, we only work with a handpicked group of reputable, long-term lending partners.
We believe in building strong financial foundations, not short-term fixes. Some lenders can actually harm your credit profile, making it harder to access commercial funding later. That’s why we only connect our clients with lenders that enhance their growth, improve cash flow, and build stability.
Beware of choosing the wrong broker — it can cost you far more than higher repayments. It can limit your borrowing power for years. Overdrive Funding focuses on sustainable lending strategies that help your business succeed today while securing your future.
With access to over 70 commercial lenders, we handle everything from application to settlement, including post-settlement support. Our transparent, client-first approach ensures you always know where you stand and what to expect — whether you’re financing a vehicle, machinery, business purchase, or managing cash flow or tax debt.
Want to see how much you can save with the right loan? Contact Overdrive Funding today for a free quote. We’ll compare lenders, structure your finance, and help you secure the best deal on the market — fast, simple, and transparent.
Contact Simon today on 0417 000 316 or complete our simple form below to discuss business loans.
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