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Compare unsecured business loans
By Sean Callery
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Best Small Business Loans Comparison
Compare your best business loan options from 50+ lenders in Australia.
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Our Business Finance experts are here to help. Updated 27 May 2026.
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Applying for a business loan with Money.com.au
It’s just three easy steps.
We look after clients' short and long-term goals
Phil Collard, Commercial Finance Broker
"Our approach is to always get our clients the best finance deal possible based on their immediate needs, while also paying attention to the bigger picture for their business. As an example, we recently helped a client in the mining sector secure asset finance for a new purchase, but in the course of the transaction, we identified an opportunity to improve the terms on an existing cash flow facility. We ended up refinancing that facility with a line of credit for $150k, closing off the high-cost facility in the process and offering flexible, additional working capital headway for the business."
Phil Collard, Commercial Finance Broker
Don't just take our word for it...
How does a business loan work?
A business loan allows your business to borrow funds to purchase assets or access working capital for day-to-day operations and growth opportunities.
The business repays the loan, plus interest and fees, over a fixed term. Typically a business can borrow an amount of money relative to the level of revenue it generates (e.g. 2-4 times monthly revenue). Here are some of the key aspects of how business loans work in Australia:
- Borrow anywhere from $5,000 to $10m+
- Loan terms from 1 month - 7 years
- Business loan interest rates can be fixed or variable
- Available to businesses, sole traders and self-employed individuals for any legitimate business purpose
- Weekly, fortnightly or monthly repayments to match your cash flow
- Available as a fixed-term loan or ongoing line of credit
According to Money.com.au data, the top three reasons businesses apply for a loan are: Vehicle or transport (31.9%); Day-to-day capital (28.4%); Purchasing an existing business (13.2%). The average business loan in Australia in 2026 is $167,272 across all loan purposes.
How to compare business loans and get the best deal
If you’re looking to compare business finance options, and ultimately get the best deal for your business, these are the main factors to keep in mind:
- Finance structure The two main business finance structures are a term loan and line of credit. A term loan means a fixed finance amount repaid over a fixed term, whereas a line of credit is an ongoing finance arrangement giving your business access to a maximum credit limit.
- Security Next, it’s a good idea to narrow down your comparison to either secured or unsecured finance. If you’re purchasing an asset with the loan, the asset can usually be used as security. You could also use another asset owned by you or the business as security.
- Interest rates The headline rates lenders advertise are usually ‘starting from’ and need to be taken with a grain of salt. For a genuine comparison, you’ll need to compare personalised quotes, which a broker can help with. Also consider whether you want certainty of repayments with a fixed loan, or more flexibility with a variable loan.
- Fees Fees can add considerably to the cost of your loan. The main ones to look out for are establishment fees (either a flat fee or percentage of loan amount), ongoing fees (monthly or annual) and exit fees if you decide to terminate your loan early by paying out the balance.
- Loan term How long will you need to repay the loan? A shorter term will save you in interest, while a longer term will cost more, but can help with cashflow as the regular repayments will be lower.
- Lender suitability Don’t waste your time comparing business loans from lenders that simply won’t lend to you. Some lenders have rigid criteria for minimum trading history, minimum turnover, credit history and even industries they will and won’t lend to. Others will be far more flexible.
- Application type Do you want to get finance with the minimum of paperwork and assessment, or are you happy to go through a full application and assessment? There are pros and cons to both full doc and low doc applications, but it’s important to have a clear idea of which avenue will suit you best before comparing lenders.
- Payment flexibility If your cashflow fluctuates, it can be beneficial to have the flexibility to pay extra on your loan when you have additional funds sitting in the bank. This saves you money in interest. Some loans let you pay down extra without penalty and even allow you to redraw the additional funds you repaid if you need extra cashflow down the track.
How much will your repayments be?
See your estimated business loan repayments per week, fortnight or month.
Business loan repayment calculator
What type of business loan is best for me?
Deciding on the best business loan is not simply a case of finding the lender with the sharpest pricing. There are several different forms of business finance that may ultimately be the best fit for you, depending on what you need the funds for.
Below we’ve summarised the main options to consider.
Compare business finance options
Secured business loan
A secured business loan is backed by a commercial asset or residential property which acts as collateral to secure the loan. In some cases, you may be able to use commercial property (e.g. your business premises) as collateral.
Secured business finance is usually more cost effective for the borrower because there’s less risk for the lender. The lender can reclaim and sell the asset(s) if you default on your loan repayments.
Unsecured business loan
An unsecured business loan is not backed by an asset or collateral. Because the loan isn't tied to any security, unsecured business loans tend to be more expensive to offset the lender’s risk.
That’s because if you default on the loan, the lender may not be able to recoup its losses. Your maximum borrowing amount may also be lower compared to a secured business loan.
Chattel mortgage
A chattel mortgage is a business loan that’s secured against movable property, like a business car loan or equipment finance. The business owns the asset being financed, but the lender retains a claim on it until the loan is repaid. Chattel mortgage interest rates and other terms tend to be better for borrowers compared to unsecured finance options.
Asset finance
Asset finance is sometimes considered its own category of business finance, but it’s generally just another way of describing a secured business loan, with the asset being financed serving as collateral. There are also a couple of leasing options (covered below) that fall under the umbrella of asset finance.
Business line of credit/Business overdraft
A business line of credit gives a borrower access to a predetermined credit limit that can be drawn from as needed. It's sometimes referred to as a business overdraft
Interest is only paid on the amount used, making it a flexible option for managing cash flow and covering short-term expenses. It works similarly to a business credit card but can be used for a wider range of expenses (e.g. paying staff).
Invoice finance
Invoice finance is a way for businesses to access funding based on the invoices due from their customers. This improves cash flow by allowing a business to effectively get an advance on outstanding invoices.
The way in which invoice finance works varies depending on the provider, with the two main options being invoice factoring and invoice discounted.
Low doc business loans
Low doc business loans are designed for businesses that might not have all the financial documentation typically required for a loan. They are also popular for borrowers who need fast funding and want to avoid a full and detailed loan application.
Bad credit business loans
Bad credit business loans are available to businesses with issues in their credit history. These loans generally come with higher rates and fees and stricter terms on account of the higher risk. But they provide crucial short-term funding for small business owners unable to secure traditional loans.
Finance Lease
A finance lease involves a business leasing an asset for a fixed duration, with the option to purchase the asset at the end of the lease term. The business leasing the asset is responsible for maintenance and bears the risks and rewards of ownership.
Operating Lease
An operating lease allows a business to lease an asset for a shorter period, typically less than the asset’s useful life. The leasing provider retains ownership and responsibility for maintenance.
Most popular business loan options right now
Phil Collard, Business Finance Expert
"A business line of credit is an increasingly popular option with the clients we deal with. It effectively acts like an overdraft, giving businesses a revolving credit facility to draw down on whenever they need an injection of capital. You can keep recycling that funding over and over. Customers also really enjoy the fact that you're only paying interest on what you use. "
Phil Collard, Business Finance Expert
Best business finance by industry
Best business finance for tradies and construction
- Asset loans For tradies and builders who need to finance equipment purchase (e.g. a new ute or excavator), an asset loan is often the most suitable and cost-effective option. This is a secured loan, meaning the asset you’re financing serves as collateral, with predictable repayments during the finance term. Your business owns the asset from the start meaning you have complete control over its use.
- Lines of credit Cashflow in the building sector can be notoriously unpredictable, with large upfront material and labour costs, often months before you receive payment from the customer. A business line of credit allows you to draw down funds to cover costs as they arise, then clear the balance when you get paid. You can repeat that cycle as often as needed, up to the maximum credit limit.
Best business finance for hospitality businesses
- Working capital loans Hospitality businesses that are affected by heavy seasonality tend to benefit most from shorter-term working capital loans. These are usually unsecured which makes them appealing for the likes of cafes and restaurants that tend not to own large assets. A common use case is a cafe or restaurant that closes temporarily for refurbishment. A working capital loan provides a cash injection to cover rent and other fixed costs until normal business resumes.
- Lines of credit For day-to-day or week-to-week cashflow shortages, many hospitality businesses choose to have a revolving credit facility sitting in the background. This can be as simple as helping a business owner cover staff costs and other current expenditure when business is affected by a period of particularly bad weather.
Best business finance for manufacturing firms
- Equipment loans Investing in new and upgraded equipment is essential for manufacturing firms. Particularly for established manufacturing firms, the lifespan of equipment is generally predictable, meaning a term equipment loan can be structured to mirror the useful life of the equipment being funded.
- Invoice finance Ideal for manufacturing firms who want to offer favourable payment terms to customers, while still receiving an instant cash injection via a lender as soon as invoices are generated.
- Trade finance: Given the extended payment cycles exporters must manage, trade finance (i.e. borrowing against goods orders) is a popular method of bridging the gap between orders received and payments received.
Best finance for agribusiness
- Vehicle loans (chattel mortgage) A form of secured finance used by farming businesses to pay for tractors, utes and other vehicles or machinery. Allows for instant ownership of the asset, with the cost typically spread over a term of 1-7 years.
- Revolving credit line An ongoing credit line can be ideal for cyclical businesses with recurring cashflow patterns, like farms. A common use case is drawing down credit to pay for seasonal labour during harvest, then paying off the balance when the produce is sold.
Best business finance for professional services
- Credit line Professional services firms tend to be labour intensive, but not necessarily in predictable patterns. A credit line is a useful tool for allowing you to hire extra staff or contractors to fulfil new projects or take on extra clients.
- Invoice finance Professional services firms that offer credit terms to clients often use invoice finance as a way of shortening cashflow gaps.
Who’s eligible for a business loan?
Generally, the minimum eligibility requirements for a small business loan in Australia include:
- Australian citizenship or permanent residency
- An active ABN or ACN
- Your business must be GST-registered
- At least six to 12 months of trading history
- A minimum annual business turnover of $75,000 - $100,000
- The ability to provide financials or bank statements
- A good credit score — the minimum business credit score is 475; for company directors, it's about 500 (it could be less if you're a homeowner).
- Operate in a non-excluded industry (some lenders won’t lend to the likes of gambling-related businesses, debt collection companies and tattoo studios).
Our data shows most business loan applicants (61%) have been trading for more than three years. Only 10% of businesses applying for a loan had been trading for less than a year.
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More FAQs about business loans in Australia
How do I apply for a business loan?
Understanding how to get a business loan starts with knowing your eligibility and gathering the necessary documentation. You can apply for a small business loan with banks, specialist online lenders, or through a finance broker.
What you'll be asked about your business Its location, structure, monthly and annual turnover, how long you’ve been operating for and in what sector.
What you'll be asked about the loan you want How much you want to borrow and for how long (your loan term), plus details of the asset you wish to purchase (if applicable).
Financial documentation you’ll need to provide Business bank statements from the last six to 12 months, BAS statements and/or tax returns (optional), ABN registration information.
For loans above $150,000, you'll also need to provide Profit and loss statements, business balance sheet, a business plan outlining how you will use the funds to generate revenue, plus details of business expenditure and how you plan to repay the loan.
How much can my business borrow?
Your business’ borrowing capacity will be determined by a few different factors, including your monthly revenue, expenses, existing loan obligations and the industry your business operates in.
Each lender will have its own method of calculating an applicant's borrowing capacity based on a combination of these factors. Lenders also have overall limits on the maximum and minimum loan amounts they are prepared to offer.
For unsecured lending, a general rule of thumb is that a business can borrow 2-4 times its monthly revenue. For secured loans, limits may be higher depending on the asset used as security.
Which business lenders does Money.com.au compare?
We help clients compare business loans from a wide range of mainstream and specialist lenders, including:
- ABR Finance
- Angle Finance
- ANZ
- APositive
- Australian Business Credit
- Australian Secure Capital Fund
- Azora Finance
- Banjo Loans
- Bizcap
- Business Fuel
- Butn
- Capify Australia
- Capital Finance
- CSA Private Mortgages
- Drive Finance Solution
- Dynamoney
- Earlypay
- Eastwood Securities
- Fifo Capita
- Finport Finance
- Finstro
- Fleet Partners
- Flexi Commercial
- Funda Business Finance
- Funding
- Fuzion Capital
- GRENKE
- Group And General
- HomeSec
- In Front Australian Business Solutions
- Invoice Money
- Lend Asset Assist
- Lumi
- Moneytech
- Morris Finance
- Moula
- Multipli
- Nova Cash Flow Finance
- Octet Finance
- Off Panel Lender
- Prospa
- Rentset
- Resimac
- ScotPac Business Finance
- Selfco
- Semper Asset Management
- Shift
- Speedy Finance
- Strive Financial
- TradePlus24
- TruePillars
- Westlawn
- Westpac
- Your Manager
What's the cheapest business loan?
The cheapest business loans in Australia are typically for secured finance and are offered to established businesses with a strong credit history. If you need an unsecured loan and/or your business does not have an established trading and credit history, the cost of your business finance will likely be higher.
How much are the fees on a business loan?
Business loans generally come with standard fees, including:
- Establishment fees: $150 - $550
- Monthly account keeping fees: $0 - $10
- Extra repayment fees: Depends on loan amount & loan term
- Early payout fees: $0 - $450
Fees can significantly impact your borrowing costs, so consider negotiating with your lender to minimise them. Some lenders may even waive certain upfront fees to win your business.
Do I have to provide bank statements when applying for a business loan?
Yes, most business loan applications require submitting your latest bank statements for the business, usually as electronic copies. This is the quickest way for lenders to assess your business revenue and determine if you can comfortably repay the total loan amount and interest.
If you can’t provide business bank statements, you may have to apply for a low doc business loan, for which you’ll be asked to provide an accountant's letter verifying your business income.
Can I repay my small business loan early?
In most cases, lenders will allow you to repay your loan early, although early termination fees may apply. If you plan on repaying your loan amount early to reduce your interest payable, check with your lender up-front whether you’ll incur fees or penalties for doing so.
Make sure that early termination fees on a business loan don't offset the interest savings you’d make by paying off the loan sooner.
Can I refinance my business loan?
Yes, you can generally refinance your business loan, although early termination fees may apply. Refinancing involves paying off your current business loan with a new one. You can refinance by getting a new loan from another lender or by switching your current loan with your current lender.
According to CPA Australia, common reasons why a business may choose to refinance include:
- To lower their ongoing finance costs
- To borrow more money
- To consolidate debts
Be sure to check that the fees you’d pay in the refinancing process don’t cancel out the benefit of refinancing in the first place.
What business loan tax deductions can I claim?
Certain costs of using a business loan, including interest and some loan fees, may be tax deductible, according to the ATO.
Tax expert, Marianna Agostino, of Conscious Wealth Creation told Money.com.au that the purpose of the loan determines whether expenses will be tax deductible.
“It’s important to keep business loans for business purposes only," Marianna said. "If you use the borrowed funds for a mix of business and personal reasons, you will need to apportion the interest between business and personal before claiming a deduction.”
The type of business finance you choose may have tax implications too, with options like a chattel mortgage allowing businesses to access depreciation of an asset despite having borrowed to purchase it.
“It’s important to also remember that some loan establishment costs may be deductible over the course of the loan rather than on establishment, ” Marianna added.
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Sean Callery is the Editor of Money.com.au. He has over 15 years of international experience. He is qualified with a Certificate IV in Finance and Mortgage Broking (FNS40821) and is compliant to provide general advice in Tier 1 General Insurance (RG 146) products.
Jared Mullane is a finance writer with more than a decade of experience at some of Australia’s biggest finance and consumer brands. His areas of expertise include energy, home loans, personal finance and insurance. Jared is qualified with a Certificate IV in Finance and Mortgage Broking (FNS40821).
Important Disclosures
General information only
The information on this page is general in nature and has been prepared without considering your objectives, financial situation or needs. You should consider whether the information provided and the nature of any loan product is suitable for you and seek independent financial advice if necessary.
We are not providing you with a recommendation or suggestion about a particular product. You should read the relevant disclosure information from the lender before deciding whether to apply for or continue to use a particular product.
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If you get a business loan as a result of visiting this page and/or dealing with a Money.com.au business lending specialist, we may earn a commission from the lender. Read more about how we make money.
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