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Best Small Business Loans Comparison

Updated 28 Oct 2025

Compare your best business loan options from 50+ lenders, with great rates and hassle-free funding up to $20 million.

Excellent
4.8 out of 5
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Sean Callery Editor Money.com.au
Money.com.au's Senior Finance Writer, Jared Mullane
Money's asset finance expert, Phil Collard

Our business finance experts are here to help.

Australian Business Loans

The current best business loan rates we compare

Secured finance from

6.39%

Per annum

Unsecured loans from

11.75%

Per annum

Line of credit from

14.30%

Per annum

Equipment loans from

6.39%

Per annum

Invoice finance from

2.5%

Of invoice amount

Bad credit loans from

18.5%

Per annum

Compare business loans and rates in Australia

Instantly compare business loan rates from the lenders on our panel. To check your personalised rates and eligibility – and for a smoother application process – simply hit ‘Compare now’ and our business lending experts will do the work for you.

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Rates updated 28 October 2025

Important Disclosures

Loan purpose

Loan amount

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Group And General Business Loan

Interest rates from

6.39% - 10.89%

per annum

Loan amounts

$10k - $350k

Loan terms

1 - 5 years

Compare now
on Money.com.au
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ScotPac Business Finance Business Loan

Interest rates from

6.50% - 14.85%

per annum

Loan amounts

$10k - $4m

Loan terms

1 month - 30 years

Compare now
on Money.com.au
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Resimac Business Loan

Interest rates from

6.64% - 13.59%

per annum

Loan amounts

$5k - $450k

Loan terms

1 - 7 years

Compare now
on Money.com.au
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Dynamoney Business Loan

Interest rates from

6.69% - 19.40%

per annum

Loan amounts

$2k - $1m

Loan terms

6 months - 7 years

Compare now
on Money.com.au
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Flexicommercial Business Loan

Interest rates from

6.85% - 13.90%

per annum

Loan amounts

$10k - $750k

Loan terms

Up to 7 years

Compare now
on Money.com.au
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Angle Finance Business Loan

Interest rates from

6.99% - 16.95%

per annum

Loan amounts

$5k - $500k

Loan terms

3 - 7 years

Compare now
on Money.com.au
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Metro Business Loan

Interest rates from

7.15% - 9.20%

per annum

Loan amounts

$10k - $300k

Loan terms

2 - 5 years

Compare now
on Money.com.au
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Westpac Business Loan

Interest rates from

7.20% - 10.01%

per annum

Loan amounts

$15k - $650k

Loan terms

Quoted on application

Compare now
on Money.com.au
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Azora Finance Business Loan

Interest rates from

7.30% - 16.24%

per annum

Loan amounts

$1k - $250k

Loan terms

Quoted on application

Compare now
on Money.com.au
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Branded Financial Services Business Loan

Interest rates from

7.45% - 11.55%

per annum

Loan amounts

$5k - $250k

Loan terms

1 - 7 years

Compare now
on Money.com.au
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Selfco Pty Ltd Business Loan

Interest rates from

7.49% - 12.90%

per annum

Loan amounts

$25k - $300k

Loan terms

Up to 5 years

Compare now
on Money.com.au
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Capital Finance Business Loan

Interest rates from

7.70% - 14.00%

per annum

Loan amounts

$5k - $150k

Loan terms

Quoted on application

Compare now
on Money.com.au
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Vestone Capital Business Loan

Interest rates from

7.74% - 16.99%

per annum

Loan amounts

$2k - $1m

Loan terms

1 - 7 years

24 months min trading history

Compare now
on Money.com.au
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Moneytech Business Loan

Interest rates from

7.99% - 17.74%

per annum

Loan amounts

$25k - $2m

Loan terms

Quoted on application

Compare now
on Money.com.au
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Westlawn Business Loan

Interest rates from

8.25% - 10.75%

per annum

Loan amounts

$20k - $250k

Loan terms

3 - 5 years

Compare now
on Money.com.au
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Funding Business Loan

Interest rates from

8.49% - 9.50%

per annum

Loan amounts

$25k - $10m

Loan terms

Quoted on application

Compare now
on Money.com.au
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Multipli Business Loan

Interest rates from

8.49% - 11.99%

per annum

Loan amounts

$30k - $1m

Loan terms

Quoted on application

Compare now
on Money.com.au
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Banjo Loans Business Loan

Interest rates from

9.75% - 34.95%

per annum

Loan amounts

$20k - $2m

Loan terms

2 months - 5 years

$41,666 minimum monthly sales

Compare now
on Money.com.au
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TruePillars Business Loan

Interest rates from

9.90% - 20.90%

per annum

Loan amounts

$25k - $300k

Loan terms

1 - 7 years

Compare now
on Money.com.au
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Octet Business Loan

Interest rates from

10.35%

per annum

Loan amounts

$100k - $12m

Loan terms

Quoted on application

$83,333 minimum monthly sales

Compare now
on Money.com.au

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Business loan rates in October 2025

As of October 2025, business loan interest rates in Australia start from 6.39% p.a. for secured loans and 11.75% p.a. for unsecured business finance, according to Money.com.au's database of lenders.

But rates can be higher than that on some business loans. In fact, our analysis of 50+ lenders across all borrower categories shows the average business loan interest rate is around 17.49% p.a.

The type of business matters too, with the latest data from the RBA shows small businesses pay an extra 1.71 percentage points per annum on average on new business loans compared to large businesses.

Business finance rates also vary based on the type of loan you choose, as the tables below show.

Top rates by category

LoanInterest rates starting fromLoan amounts

Group And General Business Loan

6.39% p.a.

$10k - $350k

ScotPac Business Finance Business Loan

6.50% p.a.

$10k - $4m

Resimac Business Loan

6.64% p.a.

$5k - $450k

Dynamoney Business Loan

6.69% p.a.

$2k - $1m

Flexicommercial Business Loan

6.85% p.a.

$10k - $750k

LoanInterest rates starting fromLoan amounts

Earlypay Business Loan

11.75% p.a.

$50k - $1.5m

Prospa Business Loan

14.95% p.a.

$5k - $800k

Lumi Business Loan

15.50% p.a.

$5k - $750k

Moula Business Loan

15.99% p.a.

$10k - $250k

Business Fuel Business Loan

16.00% p.a.

$10k - $500k

LoanInterest rates starting fromCredit limits

Dynamoney Secured Business Overdraft

14.30% p.a.

$5k - $500k

Shift Business Overdraft

14.95% p.a.

$25k - $1 million

Suncorp Bank Unsecured Business Overdraft

14.99% p.a.

Up to $50k

NAB QuickBiz Unsecured Business Overdraft

15.50% p.a.

$5k- $50k

ANZ Unsecured Business Overdrafts

15.45% p.a.

$2k to $300k

Applying for a business loan with Money.com.au

It’s just three easy steps.

Step 1

apply

Pre-qualify

Answer our questions about your business.

Check if I qualify

Step 2

Magnifying

Compare

Review your loan options side by side.

Compare business loans

Step 3

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Apply

With the help of one of our experts.

Apply for a loan

Some of our happy business loan customers

"Miguel made it super easy and kept us informed throughout the process."

Dave Rainey - 16 October 2025

"Fi has been so honest and supportive in really difficult times. If I had to recommend anyone to assist a small business facing really difficult times, I would recommend Fi in a heartbeat. Thank you, so very much."

Carly - 13 October 2025

"The brokers are dedicated to their work, especially (Tony) Did the papers so quick, The company is understanding and i think they aim to giving quality service."

Craig Masuku - 16 September 2025

"Tony was prompt with his response to my email enquiry and is super friendly and helpful. He made our business loan process so easy and quick. Had finance and settlement within days. Will definitely consulting him again with our future loans and can’t recommend him highly enough."

Julia Sewell - 1 September 2025

"Phil was an excellent communicator who listened to our specific needs and found us a great solution. 10/10."

Alexis - 30 August 2025

"Jane Lim is an absolute star! She made the process so easy. Her communication was impeccable. I would use her time & time again. Thanks so much Jane!"

Afiya Levy - 27 August 2025

"The service from Phil and Fi was on point. Communication was exceptional. They both worked hard to understand my needs and fulfill my requirements. I was kept in the loop every step of the way, and they got me a good deal which suited my needs with minimal of fuss. They were extremely responsive and reactive when I reached out, and nothing seemed like too much trouble. I would definitely recommend Money.com.au."

John - 21 August 2025

"Miguel was a great help in getting everything together for the loan and vehicle. He was very honest and was always available when I had to reach him."

Rohan Ingram - 21 August 2025

"Miguel was awesome to deal with, very helpful and nothing was too much trouble for him, helped me all the way through the process. Prompt and efficient with the best deal. He had me sorted in less than 24 hours. Would recommend Miguel to anyone."

Natalie Wilson - 14 August 2025

"Tony was awesome to deal with – he sorted the finance for my work vehicle and got me a competitive rate. Made the whole process super easy from start to finish. Couldn’t recommend him enough."

Matty C - 14 August 2025

"Great, easy and knowledgeable. Process was a breeze, competitive rate - Shout out to Tony for his help."

Cassie Cavanagh - 13 August 2025

"Miguel was very helpful throughout the whole process, communicated well and kept me updated. Will definitely use again in the future."

Sonny Greagen - 6 August 2025

"From start to settlement date our Asset Broker Fi Ahlstrom was informative and considerate of all the moving parts in our small Transport Company. Her guidance and knowledge helped us navigate the finance rollercoaster. In trusting the process and her we moved towards financing quickly and now have established a relationship, that we hope continues as our business grows."

Belinda - 21 July 2025

"Miguel has been absolutely amazing helping me secure a loan for my business. He kept me up to date through the whole process and couldn't be more happy."

Jed Smolensky - 15 July 2025

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.

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  • Borrow anywhere from $5,000 to $10m+
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  • Loan terms from 1 month - 7 years
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  • Fixed interest rates starting from 6.39% p.a. (excellent credit), with variable rates also available
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  • Available to businesses, sole traders and self-employed individuals for any business purpose
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  • Weekly, fortnightly or monthly repayments to match your cash flow
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  • Available as a fixed-term loan or ongoing line of credit
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According to Money.com.au data, the top reasons businesses apply for a loan are: Day-to-day capital (31.71%), Vehicle or transport (27.98%); Purchase existing business (14.51%)

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:

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  • 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.
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  • 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.
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  • 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 rates, which a broker can help with. Also consider whether you want certainty of repayments with a fixed rate, or more flexibility with a variable rate loan.
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  • 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.
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  • 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.
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  • 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.
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  • 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.
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  • 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 Tax Debt Loans with Money Matchmaker

Business loan repayment calculator

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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 rates. 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

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 usually comes with lower interest rates and more repayment flexibility because there’s less risk to the lender. The lender can reclaim and sell the asset(s) if you default on your loan repayments.

An unsecured business loan is not backed by an asset or collateral. Because the loan isn't tied to any security, interest rates on unsecured business loans tend to be higher 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.

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 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.

A business line of credit gives a borrower access to a predetermined amount of funds that can be drawn on 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.

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 are designed for businesses that might not have all the financial documentation typically required for a loan. These loans often have higher interest rates and lower borrowing limits, but offer faster approval processes in a lot of cases.

Bad credit business loans are available to businesses with issues in their credit history. These loans generally come with higher interest rates 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.

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.

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

Money's asset finance expert, Phil Collard

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

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  • 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.
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  • 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.
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  • 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.
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  • 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.
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  • 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.
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  • 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.
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  • 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.
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  • 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.
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  • 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.
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  • 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.
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  • 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:

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  • Australian citizenship or permanent residency
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  • An active ABN or ACN
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  • Your business must be GST-registered
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  • At least six to 12 months of trading history
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  • A minimum annual business turnover of $75,000 - $100,000
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  • The ability to provide financials or bank statements
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  • 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).
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  • Operate in a non-excluded industry (some lenders won’t lend to the likes of gambling-related businesses, debt collection companies and tattoo studios).
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Our analysis shows most business loan applicants (64%) have been trading for more than three years. Established businesses like these can borrow more, with an average loan of $247,993 versus $90,445 for business operating for less than a year.

10 factors that impact your business loan rate

Your personalised business loan interest rate will be based on the lender’s criteria and their assessment of how risky it is to lend to you.

Secured business loans generally come with lower interest rates, as there is less risk for the lender. A fixed-term loan could also come with a lower rate than an ongoing credit line.

For asset finance, the asset being used as security affects the rate. For example, for a business loan to purchase a vehicle, the age and condition of the asset will be a factor.

Our data shows 43% of businesses financing a vehicle purchased brand new. Borrowers financing more specialised vehicles and equipment, like trucks, are more likely to buy a used asset.

Businesses with a high level of annual turnover (e.g. $5m+) will qualify for lower business loan rates than a lower-turnover business.

They can also generally borrow more, with our data showing an average loan amount of $511,516 for businesses with $50,000+ in monthly revenue, versus $53,020 for business with monthly revenue below $10,000.

Established businesses generally get lower rates than newer businesses. A minimum of 12 months' trading is a common requirement.

Some lenders tailor their rates based on the industry the borrower operates in. As you’d expect, businesses in lower-risk industries often qualify for lower rates.

Businesses in building and construction accounted for 1 in 5 (20.11%) loan requests, according to Money.com.au data.

If the borrower providing a personal guarantee for the loan is asset-backed (i.e. owns a property), they’ll generally qualify for lower rates.

Our data shows 56% of business borrowers own their own home.

With a lot of lenders, a credit score below 600 will make getting a business loan more difficult, with higher rates applying for low credit score borrowers who are approved.

If there are defaults, court orders or insolvencies in the borrower’s credit history, higher rates will apply. Dishonoured payments or being overdrawn on an account could also be considered.

Borrowers with no outstanding ATO payments due typically get lower business loan rates. If you are in arrears with the ATO but the payments are manageable, you may still qualify but with a higher interest rate.

This isn’t always the case, but some lenders will vary rates based on the loan amount and duration of the finance. Again, the common theme is that greater risk means higher rates.

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If you have a strong business loan application, you may also be eligible to apply for larger loan amounts, with longer loan terms and lower fees.

Food truck buy a business

More FAQs about business loans in Australia

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.

We help clients compare business loans from a wide range of mainstream and specialist lenders, including:

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  • ABR Finance
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  • Angle Finance
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  • ANZ
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  • APositive
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  • Australian Business Credit
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  • Australian Secure Capital Fund
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  • Azora Finance
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  • Banjo Loans
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  • Bizcap
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  • Business Fuel
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  • Butn
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  • Capify Australia
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  • Capital Finance
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  • CSA Private Mortgages
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  • Drive Finance Solution
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  • Dynamoney
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  • Earlypay
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  • Eastwood Securities
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  • Fifo Capita
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  • Finport Finance
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  • Finstro
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  • Fleet Partners
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  • Flexi Commercial
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  • Funda Business Finance
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  • Funding
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  • Fuzion Capital
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  • GRENKE
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  • Group And General
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  • HomeSec
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  • In Front Australian Business Solutions
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  • Invoice Money
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  • Lend Asset Assist
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  • Lumi
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  • Moneytech
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  • Morris Finance
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  • Moula
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  • Multipli
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  • Nova Cash Flow Finance
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  • Octet Finance
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  • Off Panel Lender
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  • Prospa
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  • Rentset
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  • Resimac
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  • ScotPac Business Finance
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  • Selfco
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  • Semper Asset Management
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  • Shift
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  • Speedy Finance
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  • Strive Financial
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  • TradePlus24
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  • TruePillars
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  • Westlawn
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  • Westpac
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  • Your Manager

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 business loan rates you qualify for will likely be higher.

Currently, the average interest rate on a small business loan in Australia is 16.75% p.a. Interest rates will be higher for unsecured business loans. The average interest rate for business loans varies as there are multiple lenders and loan products available in the market. That’s why it’s important to compare your options to find the best rate for your business.

Here are the three main ways lenders will advertise — and apply — interest on business loans:

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  • Simple interest rate: Only shows the interest charged on the loan each year (or it’s sometimes charged monthly) as a percentage of the loan balance.
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  • APR (annual percentage rate): This is the total cost of borrowing (including interest and fees) expressed as an annual percentage.
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  • Factor rate: Often used on short-term loans. This is the interest rate on a loan presented in decimal form instead of a percentage.

Yes, business lenders regularly review and update their interest rates to reflect market conditions, the cash rate and other factors.

For example, overall business finance rates have fallen in 2025, broadly in line with cuts in the cash rate made by the Reserve Bank of Australia.

Not only that, the rates that lenders offer to different customer types can also change regularly. That’s because lenders frequently tweak their credit policies and interest rate bands to reflect their current risk appetite.

For example, if a lender has particularly high credit exposure within a particular industry it may increase rates for new borrowers in that industry to reflect the increased risk.

What does that all mean for you? In short, it’s important to shop around. Even if you got a decent rate with a particular lender in the past, it doesn’t mean that lender’s rates will still be competitive for you.

Business loans generally come with standard fees, including:

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  • Establishment fees: $150 - $550
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  • Monthly account keeping fees: $0 - $10
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  • Extra repayment fees: Depends on loan amount & loan term
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  • 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.

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.

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.

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:

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  • To get a lower interest rate
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  • To borrow more money
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  • To consolidate debts

Be sure to check that the fees you’d pay in the refinancing process don’t cancel out the benefit (e.g. getting a lower interest rate) of refinancing in the first place.

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 eight years 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).

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Important Disclosures

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.

The products displayed in our business loan comparison tables are those available from Money.com.au’s lending partners that match the loan criteria selected at the top of the table. The comparison does not cover all lenders available in the market, nor does it cover all products available from those providers shown. The comparison does not include all product features, costs and eligibility criteria that may be relevant to you.

Product information, such as interest rates, fees and charges, is subject to change without notice. Please check current product details with one of our business lending specialists or directly with the lender before proceeding.

Users can easily change the sort order and apply product filters to our product comparison tables based on what they need. However, when you first arrive on a page, a default loan amount and purpose is selected and business loans are automatically sorted by:

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  • Lowest starting interest rate, then;
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  • Provider name (A-Z)

The order of the products in our business loan comparison tables is not influenced by any commercial arrangements.

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.

Money.com.au has strict rules and policies in place that ensure we can provide accurate and reliable information to consumers and businesses about financial products, without it being influenced by our commercial arrangements.

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This material has been prepared by Money Pty Limited (ABN 40 664 954 536) (Money, ‘us’ or ‘we’). Money is a corporate authorised representative (CAR 001307399) of 62 Consulting Pty Limited (ABN 88 664 809 303) (AFSL 548573) (62C). The material is for general information only and is not an offer for the purchase or sale of any financial product or service. The material is not intended to provide you with financial or tax advice and does not take into account your objectives, financial situation or needs. Although we believe that the material is correct, no warranty of accuracy, reliability or completeness is given, except for liability under statute which cannot be excluded. Please note that past performance may not be indicative of future performance and that no guarantee of performance, the return of capital or a particular rate of return is given by 62C, Money, any of their related body corporates or any other person. To the maximum extent possible, 62C, Money, their related body corporates or any other person do not accept any liability for any statement in this material.

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