Business Loans Australia 2026: Types, Rates, Repayments

A business loan is credit for a business purpose that you repay with interest or a fixed fee. The main Australian types are secured and unsecured term loans, overdrafts, lines of credit, equipment and vehicle finance, invoice and trade finance, revenue-based advances, low-doc loans and a handful of targeted government programs. Published prices checked on 17 October 2026 ran from 7.54% p.a. to 35.99% APR.

This is general information, not financial product advice, and it doesn't consider your circumstances. Read the loan contract, key facts and any target market determination (TMD), and consider getting advice before you borrow.

Business loan types at a glance

Published examples from provider and program pages, checked 17 October 2026. They show the range on offer and are not offers or recommendations.

Which type of loan fits your need?

Start with what the money is for. The right structure usually matters more than a small difference in rate.

If you don't own property, our guide to business loans without a house works through the non-property options in more depth.

Business loan types explained

Secured term loans

A secured term loan gives you a lump sum with scheduled repayments, backed by property. Property security usually brings the lowest rates because the lender can sell it if you default: the RBA's August 2026 average for new residentially secured small business loans was 6.98%. CommBank's BetterBusiness Loan advertised secured variable rates from 7.54% p.a. with terms of up to 30 years, depending on the security, and lists a $35 monthly loan service fee (current as at 9 October 2026). Liberty advertised secured business loans from 8.95% p.a., up to $2m with terms of up to 30 years (effective 16 October 2026).

CommBank says secured applicants are more likely to be approved with a deposit of at least 30% plus cash reserves to cover the first three months of operation. If you're buying an established business, run our due diligence checklist before you approach a lender.

Unsecured term loans

An unsecured loan has no specific asset behind it. The major banks' unsecured products top out at $200,000 to $250,000 without asset security, while some non-bank lenders go to $500,000 or more with conditions. Bank rates published on 17 October 2026 were 12.95% p.a. fixed (NAB QuickBiz), 12.99% p.a. (ANZ GoBiz, from ANZ's rate data effective 9 October 2026) and from 13.09% p.a. variable (CommBank). Moula quoted 15.99% to 35.99% APR and Lumi from 15.5% APR. Prospa and OnDeck don't publish rates.

"Unsecured" rarely means nobody is on the hook. Lenders usually take director guarantees and may register security over business assets above certain amounts. Our unsecured business loans comparison lists more than 10 lenders side by side and converts factor rates into annual rates.

Overdrafts and lines of credit

Both give you a limit to draw on and charge interest only on the drawn balance, plus a fee for keeping the limit available. CommBank's unsecured overdraft started at 15.05% p.a. with a 1.70% p.a. line fee (as at 9 October 2026). Westpac advertised overdraft rates from 8.36% p.a., depending on security, with a 1.20% p.a. line fee on the total limit. Lines of credit from non-banks often add weekly or monthly service fees, and some charge a fee on the unused part of the limit.

The differences, including when a bank can call in an overdraft, are in business overdraft vs line of credit.

Equipment finance, chattel mortgages, hire purchase and leases

Equipment finance uses the asset as security. CommBank and Westpac describe three main structures:

• Equipment or car loan (chattel mortgage): you own the asset and the lender takes security over it.
• Hire purchase: the lender buys the asset and you pay it off in instalments. Ownership passes to you after the final payment.
• Finance lease: you rent the asset for an agreed period and return it at the end.

CommBank finances from $20,000 with no deposit, offers fixed rates and repayments, and says an optional balloon lowers regular repayments but increases the total interest paid. NAB says typical terms run one to five years and requires an ABN, GST registration and mostly business use. CommBank lists green discounts of up to 0.50% p.a. for qualifying energy-efficient cars and equipment, and NAB has a green finance product with an online fixed rate for qualifying electric vehicles.

Tax and GST treatment differs between these structures, so ask your tax agent before you choose. Our guides to buying or leasing equipment, testing the cash timing of a purchase and the instant asset write-off cover the decision.

Business car loans

A business car loan is equipment finance for a vehicle. Westpac's version covers cars, vans, trucks and utes, secured by the vehicle, with an optional balloon. It also offers a three-month repayment pause for eligible customers, with interest accruing and capitalised at the end of the pause. If the vehicle has private use, keep the records described in our vehicle logbook guide.

Invoice finance

Invoice finance advances part of the value of unpaid invoices to business customers. ScotPac advances up to 85% of eligible invoice value and releases the rest, less fees, when your customer pays. It generally looks for at least six months of trading and $10,000 a month in invoices. It says businesses that bill in stages, invoice in advance or sell to consumers may not qualify. Pricing depends on turnover, customer profile and whether you want collections support, so expect a quote rather than a published rate.

The difference between factoring and confidential invoice discounting is covered in business loans without property. It's also worth tackling slow payment directly: see how to chase unpaid invoices.

Trade finance

Trade finance funds specific purchases. ScotPac pays your supplier directly by telegraphic transfer, letter of credit or documents against payment, funds up to 100% of the cost of goods, and structures repayment around when your customers pay. It suits importers and wholesalers whose suppliers want deposits months before stock sells. Our international payments guide covers the currency side.

Merchant cash advances and revenue-based finance

These products advance a lump sum for a fixed fee and collect a share of your sales until the total is repaid. Stripe Capital, offered to selected Australian businesses based on their Stripe payment history, gives this example: borrow A$15,000, pay a A$1,500 fee, and have 9% of sales go to repayment. Stripe says a minimum amount is due each period and any shortfall is debited from your bank account. Bizcap, a non-bank lender, prices its loans with a factor rate and offers daily or weekly repayments.

Because the fee is fixed, the faster you repay, the higher the annualised cost. Here is the Stripe example at three sales levels, assuming sales every day:

Illustrative ASBG calculation. The annualised rate is the internal rate of return on daily repayments, expressed as a yearly rate.

Low-doc loans

Low-doc loans are for borrowers who can't produce full, up-to-date financial statements. Liberty advertised low-doc business loans from 9.45% p.a., secured against commercial or residential property, with alternative income verification and terms up to 30 years (effective 16 October 2026). OnDeck's larger unsecured loans ($200,000 to $300,000) need an ATO integrated client account statement plus a tax return or 12 months of accountant-prepared financials. Liberty's low-doc from-rate sits above its 8.95% p.a. from-rate for full-doc secured loans.

Startup funding

Every lender in our minimums table below wants at least four months of trading. Westpac's startup loan is an exception: $10,000 to $50,000 over up to five years for businesses whose ABN has been registered for less than two years, with no asset security (guarantees may be required). Westpac wants a business plan showing industry knowledge or previous sales and a cash flow forecast. Indigenous Business Australia's Start-Up Finance Package (below) is open to eligible Aboriginal and Torres Strait Islander founders.

Otherwise, look at owner funds, family money and grants. Use our startup costs guide to size the need, check grants and government support, and if you lend your own money to your company, record it properly.

Government loans and programs open in October 2026

Economic Resilience Program (ERP). Zero-interest loans through the National Reconstruction Fund Corporation (NRFC) for manufacturing and logistics businesses materially affected by market disruption, with priority on fuel, fertiliser, plastics and freight or food supply chains. On 17 October 2026 business.gov.au still showed the program as "Open". The NRFC's customer guidance says the bank-administered stream opened on 20 April 2026, accepts applications for six months, and loans must be approved and unconditional within that period. That points to the bank window ending around 20 October 2026, sooner if allocations run out, and no extension was shown on either page. If you think you're eligible, contact a participating bank (CommBank, Westpac, NAB, ANZ, BOQ, Bendigo Bank or Judo Bank) immediately and confirm the deadline with them.

Bank-stream terms: annual turnover under $100 million, up to $5 million per business, a term ending within two years of first drawdown, no interest, standard bank fees but no fees on undrawn amounts, and a three-month repayment deferral at the start. Businesses seeking more than $5 million deal with the NRFC directly.

IBA Start-Up Finance Package. Up to $150,000 for Aboriginal and Torres Strait Islander start-ups, with up to 30% of a new business loan given as a grant for business assets, a 7-year term and no application or line service fees. Eligibility includes at least 50% Indigenous ownership, trading for less than two years and turnover under $400,000. Listed as open.

Export Finance Australia Small Business Export Loan. $20,000 to $350,000 for businesses trading at least two years with annual turnover over $250,000, to bridge funding gaps on export contracts.

Regional Investment Corporation. Concessional loans for eligible farm businesses, including the AgriStarter Loan, Farm Investment Loan and drought loans.

Green asset finance. Not a government program, but CommBank offers green discounts of up to 0.50% p.a. and NAB a green finance product for qualifying vehicles and equipment.

State programs change often. Search the grants and programs finder on business.gov.au for your state.

What do business loans cost in October 2026?

The Reserve Bank's figures give a market-wide view. In August 2026 the average interest rate on new small business loans was 7.23% p.a.: 6.98% for residentially secured loans, 8.09% for fixed-rate loans and 6.81% for variable-rate loans. The average across all outstanding small business loans was 7.47%. These averages are weighted towards bank lending, much of it secured.

Unsecured and fast-funding products cost a lot more. Published from-rates checked on 17 October 2026:

Your rate is set after assessment. A from-rate is the lowest rate a lender offers; the rate you're offered may be higher.

Consumer credit protections may not apply to your business loan

ASIC explains that the National Credit Code applies where the borrower is a natural person or strata corporation and the credit is wholly or predominantly for personal, domestic or household purposes, or for residential investment property. Credit used mainly for a business generally falls outside it. A loan to a company also falls outside, because a company isn't a natural person.

That matters because the consumer regime is where many borrower protections sit. ASIC lists the Credit Act and Credit Code protections as including disclosure requirements, restrictions on fees and interest rates, hardship provisions and free access to external dispute resolution. It also notes the Code requires comparison rates in advertisements for fixed-term consumer credit. On a business loan, you may not get these protections.

Some protections do reach business borrowers:

• Unfair contract terms. ASIC says standard form contracts with a small business (fewer than 100 employees or turnover under $10 million) for financial services with an upfront price of up to $5 million are covered. Terms such as unilateral variations or excessive default fees can be challenged, although the interest rate and upfront price themselves can't. Our unfair contract terms guide explains the test.
• The Banking Code of Practice. Banks that subscribe must apply its small business commitments to businesses with turnover under $10 million, fewer than 100 full-time equivalent staff and less than $5 million in total debt. These include 30 days' notice of a payment default before enforcement and no general "material adverse change" default clauses in standard form small business loans. If you borrow from a non-bank, ask which industry code, if any, it follows.
• AFCA. The Australian Financial Complaints Authority can consider small business complaints about credit facilities of up to $6,317,000, with compensation capped at $1,263,500 per small business loan claim. Check the lender is an AFCA member before you sign.

One warning: a lender can't move a personal loan outside the Code just by asking you to sign a business-purpose declaration. ASIC's case against Green County and Max Funding turned on lenders relying on declarations without checking how the money would really be used. If you're asked to declare a business purpose for money that will pay private bills, stop.

How lenders assess a business loan application

Lenders look at five things: how long you've been trading, how much comes in, your credit history, whether the business can carry the repayments, and whether anything is hidden.

Trading history and turnover

Minimums published on 17 October 2026:

ANZ GoBiz also needs a live connection to Xero, MYOB or QuickBooks, which makes a clean bank feed part of your application.

Credit history and account conduct

Expect checks on the business and on each director's personal credit file. CommBank says approval is more likely if you haven't been overdrawn or in arrears in the past three months, haven't been bankrupt in the past five years, and have no accounts in collections in the past six months. Non-bank lenders lean heavily on six months of bank statements, often read through a secure digital connection, looking for dishonours, existing repayments and accounts that live at their limit.

Serviceability

The Banking Code says a bank assesses your ability to repay using your financial position or account conduct, and may take projected cash flows into account. It won't ask your accountant to certify that you can repay. Many lenders reduce this to a debt service coverage ratio. Our guide to writing a business plan for a bank loan works through the calculation and shows how a longer term can lift a marginal application.

ATO debt and other liabilities

Disclose tax debt and attach the payment arrangement. The ATO can report a business tax debt to credit reporting bureaus when at least $100,000 is overdue by more than 90 days and the business isn't engaging with the ATO, so a lender may already see it. Westpac's unsecured loan requires ATO payments, loan repayments and employee entitlements to be up to date, and no new business lending taken out in the past 30 days.

Purpose and restrictions

Read the exclusions before you apply. Westpac's unsecured loan can't be used to start a business, develop property, buy residential property or refinance other lending. ANZ GoBiz excludes franchises and businesses where a director left, or 25% or more of the shares were sold, in the past six months.

Business loan documents checklist

Most applications draw on the same pack. Have it ready before you apply.

• Photo ID for every director, partner or guarantor, and your Director ID if you run a company
• ABN, ACN and business name details; trust deed if you trade through a trust
• Six months of business bank statements (or a digital connection to them)
• Recent BAS lodgements; Westpac asks for 12 months for larger facilities
• Latest annual financial statements or business tax return, plus a year-to-date profit and loss and balance sheet
• ATO integrated client account or online services report, plus any payment arrangement
• A list of existing loans, leases and credit cards
• A statement of each guarantor's personal assets, liabilities and income
• A 12-month cash flow forecast showing the new repayments
• A business plan for larger or startup loans, using our simple business plan guide
• For secured loans: property details and leases; for equipment finance: the supplier's final invoice

business.gov.au also suggests bringing your adviser or accountant to any loan interview, and asking for feedback if you're declined. Our record keeping guide helps keep this pack current all year.

How to compare business loan costs

Interest rate

A fixed rate locks your repayments, but breaking it early can cost money: NAB says economic costs may apply on QuickBiz early payout, and ANZ warns fixed-rate break costs "can be high". A variable rate can move, but ANZ charges no extra cost for early repayment on variable GoBiz loans. Check whether a rate is quoted as an APR, which reflects a reducing balance, or as a simple or flat rate, which can make a loan look much cheaper than it is.

Factor rates and fixed fees

Some lenders charge a fixed dollar cost instead of interest. A factor rate of 1.25 on a $40,000 advance means you repay $50,000. Repaid weekly over six months, that works out at roughly 90% a year as an annual percentage rate. Paying early usually saves little or nothing unless the lender offers a discount. The unsecured loans guide shows the full conversion.

Fees

List every fee: establishment or origination (Prospa charges 2% to 3.5%, Moula 2%), monthly service fees, line fees on limits, early payout fees, break costs, missed-payment fees and security registration fees. A 3% origination fee on a 12-month loan adds far more to the annual cost than the same fee spread over five years.

Comparison rates

Comparison rates combine interest and most fees into one figure. ASIC explains that the National Credit Code requires them in advertisements for fixed-term consumer credit. Business loans generally fall outside the Code, so most business lenders don't publish one. Ask each lender for the total dollar cost over the full term and an annualised rate including all fees, in writing.

Total cost of the loan

The number that matters is total repayments minus the amount you actually receive. If an establishment fee is deducted from the advance, you're paying interest on money you never got. A spreadsheet's RATE function will turn any repayment schedule into an annual rate: for 26 weekly repayments of $1,923.08 on $40,000, enter =RATE(26,-1923.08,40000)*52.

Monthly business loan repayments: an illustrative grid

To try your own figures, the business loan calculator works out weekly, fortnightly or monthly repayments and the total cost including fees.

The grid uses the standard amortisation formula:

M = P × r × (1 + r)^n ÷ ((1 + r)^n − 1)

where M is the monthly repayment, P the amount borrowed, r the annual rate divided by 12, and n the number of monthly repayments.

Worked example: $100,000 at 13% p.a. over five years. r = 0.13 ÷ 12 = 0.010833, n = 60, and (1 + r)^60 = 1.9089. M = 100,000 × 0.010833 × 1.9089 ÷ 0.9089 = $2,275 a month.

Illustrative only: fixed rate for the whole term, monthly repayments, no fees, no balloon, rounded to the nearest dollar. Rates were chosen to span the October 2026 market, from the RBA's average for new loans to the upper end of online unsecured lending.

1-year term

3-year term

5-year term

7-year term

Total interest on $100,000

Two patterns stand out. Stretching the term cuts the monthly repayment sharply but multiplies the total interest. And at 30%, a five-year $100,000 loan costs almost as much in interest as you borrowed. Many online lenders collect weekly; divide a monthly figure by roughly 4.3 for a weekly estimate, and check the lender's own schedule.

Should you use a broker or go direct?

business.gov.au suggests comparing several lenders, including non-banks, and notes that brokers can help, with some charging fees and others paid commission by lenders.

Before you engage a broker, ask how they are paid and how much, which lenders are on their panel, whether they hold an Australian credit licence or act as a credit representative, and whether they are an AFCA member. Check names on ASIC's registers, as business.gov.au recommends for any finance company you don't know.

Personal guarantees and director liability

ANZ describes a personal guarantee as secondary security that makes the directors who sign it liable for the debt if the business defaults, and says most business lenders require one. Among lenders checked, OnDeck and Prospa take guarantees on unsecured loans, Great Southern Bank requires every director of a company borrower to guarantee, and Westpac, ANZ and Banjo say guarantees may be required. A company structure doesn't protect you from a debt you have personally guaranteed; our company structure guide explains where limited liability stops.

The Banking Code requires a bank's guarantee to be limited to a specific amount or to the value of specified security, and its terms must tell you to get independent legal and financial advice and that you can refuse to sign. Several safeguards are relaxed for directors of the borrowing company: the bank doesn't have to meet a director guarantor without the borrower present, the rule that a bank waits until the third day after giving you the documents before accepting a guarantee doesn't apply to a sole director guarantor, and other director guarantors can choose to sign sooner. AFCA can hear a guarantor's claim to set aside a guarantee secured over their home. Read the guarantee before you sign it, and get your own legal advice.

Business loan red flags

• Unsolicited loan offers. business.gov.au says these are almost certainly scams. Report them to Scamwatch and read our guide to scams targeting small business.
• No total cost in writing. If a lender or broker won't state the total repayable and an annualised rate including fees, walk away.
• Daily repayments. Daily debits drain cash before wages, rent and the ATO are paid.
• Fixed-fee pricing presented as a low "rate". A factor rate of 1.2 is not 20% a year if you repay over six months.
• Early repayment that saves nothing. Check the payout formula before you sign.
• A second advance to cover the first. Taking new finance to meet existing repayments is a warning sign about cash flow.
• Pressure to sign a business-purpose declaration for money that will be used privately.
• A facility much larger than your need. You pay fees on limits, and more debt than the business can carry puts guarantors at risk.

What changed recently

• Economic Resilience Program, 2026. Opened 20 April 2026 with a six-month bank-administered window. Check the status before relying on it.
• Suncorp Bank. Now part of the ANZ Group and no longer accepting applications for business loans and finance. Existing loans will move to ANZ.
• Banking Code of Practice. The 2025 Code, in force since 28 February 2025, lifted the small business debt threshold to $5 million.

Key takeaways

• Match the product to the need: asset finance for equipment, an overdraft or line of credit for uneven cash flow, invoice finance for slow-paying customers, a term loan for one-off projects.
• Published rates checked 17 October 2026 ranged from 7.54% p.a. (CommBank secured, variable) to 35.99% APR (top of Moula's range). The RBA's average for new small business loans in August 2026 was 7.23%.
• Business-purpose credit generally falls outside the National Credit Code, so consumer protections such as mandatory comparison rates and Code hardship rules may not apply.
• Most lenders want 4 to 12 months of trading, steady turnover, clean bank statements and no unmanaged ATO debt. Directors usually sign a personal guarantee.
• Compare offers on total dollar cost and an annualised rate that includes fees. Factor rates and fixed fees can hide annualised costs above 40%.
• The zero-interest Economic Resilience Program has a six-month bank window from 20 April 2026 that closes around 20 October 2026. Check business.gov.au for its current status before relying on it.

Where to get help

• business.gov.au: steps for applying for a business loan, plus the grants and programs finder.
• National Reconstruction Fund Corporation: Economic Resilience Program status and participating banks.
• Indigenous Business Australia: Start-Up Finance Package, 1800 107 107.
• ASIC Moneysmart: plain-English information on credit and checking who you're dealing with.
• Australian Financial Complaints Authority: free complaints about lenders and brokers that are members.
• Australian Small Business and Family Enterprise Ombudsman: help with disputes involving small business.
• Small Business Debt Helpline: free financial counselling on 1800 413 828.
• Australian Taxation Office: payment plans if tax debt is part of the picture.

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