Compare business loans in Australia

Business loan rates vary widely by lender, product type and business profile. Below is a snapshot of indicative starting rates across common funding categories.

Rates updated 10 May 2026.

Secured finance from 7.49% p.a.

Unsecured loans from 14.45% p.a.

Line of credit from 14.55% p.a.

Equipment loans from 7.49% p.a.

Invoice finance from 2.5% of invoice amount

Vehicle finance from 7.99% p.a.

These are starting rates from lender panels as of 10 May 2026. Your actual rate depends on the lender, the product, and your business circumstances. Use the funding-fit check below to see which products and lenders may suit your situation.

The table below shows current business loan offerings from active lenders in the Australian SME market. Compare rates, amounts and terms before deciding where to apply.

A business loan is money borrowed by a business and repaid over time, usually with interest and fees.

Some loans are paid as a lump sum. Others let the business draw funds when needed. Some are secured against property, vehicles, equipment, invoices or other assets. Others are unsecured, although directors may still be asked to provide personal guarantees.

The word “loan” can make different products sound similar, but the repayment shape and risk can vary significantly.

A term loan may give the business one amount upfront with set repayments. A line of credit may allow repeated drawdowns up to an approved limit. Invoice finance may advance money against eligible unpaid invoices. Equipment finance may be tied to a specific asset. Unsecured funding may be faster in some cases but can carry higher pricing or tighter repayments.

The goal is not to find the most popular loan type. The goal is to match the funding to the business problem.

Business owners usually look for finance because something needs to happen before cash is available.

Common reasons include:

The stronger funding applications usually have a clear purpose. “I need money” is less useful than “I need $45,000 to buy materials and pay mobilisation costs for a confirmed job that pays in stages.”

Many SME funding needs come from the same pattern: cash has to leave before the return comes back.

That is the cash-before-growth gap.

It can happen in businesses that are otherwise active and viable. A business may have customers, work, invoices, contracts and demand, but still feel squeezed because costs and revenue do not land in the right order.

Examples:

Funding fit starts by identifying the exact timing gap.

Working capital finance:

Working capital finance is used for day-to-day operating needs such as wages, supplier payments, stock, materials, rent, fuel and short-term timing gaps.

It may suit businesses with revenue but uneven cash timing.

Invoice finance:

Invoice finance can help some B2B businesses access cash tied up in unpaid invoices. It usually depends heavily on the quality of invoices and the customers who owe the money.

Equipment finance:

Equipment finance is used to fund business assets such as machinery, tools, plant, medical equipment, hospitality equipment, technology or other productive assets.

Vehicle finance:

Vehicle finance may be used for utes, vans, trucks, trailers, service vehicles, fleet vehicles or other vehicles used in the business.

Unsecured business loans:

Unsecured business loans do not rely on a specific physical asset as security, although guarantees may still apply. They can be faster or simpler in some cases, but cost and repayment pressure need careful review.

Business line of credit:

A business line of credit can provide a reusable credit limit for repeat timing gaps. It may be more suitable than a one-off term loan when the business needs flexible access rather than a fixed lump sum.

Trade finance:

Trade finance may help fund supplier payments, purchase orders, imports or inventory cycles, especially where stock is purchased before customer revenue arrives.

Banks and non-bank lenders can both play legitimate roles in SME funding.

Banks may suit businesses with strong documentation, property or asset security, stable trading history and time to complete a more traditional assessment. They may offer a wider banking relationship and, in some cases, lower pricing for suitable borrowers.

Non-bank lenders may suit some businesses that need speed, recent bank-statement assessment, unsecured options, flexible cash-flow products or a pathway when a bank’s criteria do not fit.

The trade-off is that faster and less secured funding may cost more. It can also have repayment structures that affect cash flow more sharply.

The best question is not “bank or non-bank?” It is “which lender type fits this use case, repayment capacity and timing?”

Different lenders assess applications differently, but common checks include:

The more specific the funding purpose, the easier it is to match the application to the right product type.

For smaller or faster facilities, some lenders may focus on bank statements, ABN details, identification and recent trading performance.

For larger, bank-style or secured facilities, lenders may request more documentation, such as:

Prepare documents before the deadline becomes urgent. Business.gov.au recommends understanding income, expenses, debts and cash flow before applying, and checking how much repayment you can afford.

Business loan cost is not only the interest rate.

Check:

A lower advertised rate may not be the best fit if the facility is too slow, too rigid or mismatched to cash flow. A faster facility may not be suitable if frequent repayments strain the account.

Borrowing is not always the right answer.

A business loan may be risky if:

Debt should never feel casual. Good funding supports a specific business move. Bad funding can turn a temporary gap into a heavier problem.

Comparison One helps business owners narrow the starting point.

Instead of applying lender by lender, use the funding-fit check to identify which category may fit:

Then you can move forward with a clearer view of what to compare and what to avoid.