Compare business loans in Australia

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  *The products compared on this page are chosen from a range of offers available to us and are not representative of all the products available in the market. There is no perfect order or perfect ranking system for the products we list on our Site, so we provide you with the functionality to self-select, re-order and compare products. The initial display order is influenced by a range of factors including conversion rates, product costs and commercial arrangements, so please don't interpret the listing order as an endorsement or recommendation from us. We're happy to provide you with the tools you need to make better decisions, but we'd like you to make your own decisions and compare and assess products based on your own preferences, circumstances and needs.

What is a business loan?

A business loan is a loan used to help a business run, whether that be through purchasing commercial real estate, meet operating costs, source equipment, or manage cash flow.

Business loans, or business finance, can come in lump sum form, or as revolving credit. They can also be secured or unsecured (usually by residential or commercial property), or have either fixed or variable interest rates. No one business is the same as another, and so the many different types of business loans are designed to meet different business needs.

Comparing your business loan options is an important step in finding the best loan for your business. Finder has collected as many products as possible so you can easily compare which product works best for you, regardless of your business size.

What types of loans are there for businesses?

Business finance comes in two forms: debt finance and equity finance.

Debt finance is offered by banks, credit unions or business lenders. It involves receiving a loan from a lender.

Equity finance is when someone invests money into your company in return for shares.

There are a range of short-term and long-term business debt finance options available. They include:

Line of credit loan

Access funds only when you need them, and pay interest only on what you withdraw.

Business vehicle finance

Whether it be a car, a ute, or a truck, vehicle finance can get your business on the road.

Equipment loans

Equipment loans can fund everything from factory machinery, to barista machines, and even gym equipment. Rent, lease or buy outright.

Finance for startups

Find out what your finance options are if your business is just starting out on its journey.

Peer-to-peer business loans

Discover competitive rates through innovative finance solutions, such as peer-to-peer business loans.

Invoice finance

If you're a B2B business owner, find out how to support your cash flow using invoice finance.

How do I know which loan is right for my business?

To work out which type of finance is the right fit for your business, consider the following questions:

Why does your business need the loan?

Are you looking to start a new business from scratch, upgrade your equipment or overcome a cash flow shortage? For example, if you're looking to invest in new business equipment, you'll want to consider your equipment finance options.

What's the state of your business finances?

The current financial performance of your business will not only affect the type of funding you need, but also your ability to qualify for different types of loans. Your credit history will also affect the range of financing options you are able to access.

What industry is your business in?

The industry you're in also affects your funding needs and finance options. For example, a retail store will have different financing requirements to a microbrewery, which will have different needs to a beauty salon.

Once you've answered these questions you'll have a better idea of which type of finance is right for you. Then it's time to start comparing the different loans and sources of funding available.

How do I compare business loans?

You first need to work out what type of loan your business needs. You can then start comparing lenders and products. Here's what you need to keep in mind while comparing:

• Eligibility criteria. Check the lender's criteria and see if you meet them. This can help you narrow down your choices and find a loan you can apply for. If you don't meet the eligibility criteria, you shouldn't apply for the loan. Every loan application and rejection will appear on your company's credit file. This could downgrade your score. Click the "More info" button on the comparison table to find out the eligibility criteria of each lender.
• Cost. What can your business afford? Look at your income and expenses. How much can you comfortably repay without straining the cash flow of your business? If it's a loan for a startup, you'll need to rely on cash-flow projections.
• Interest rates and fees. After working out what you can borrow, you should start comparing the rates and fees of loan products. With some loans, the interest rate may be low but additional fees high. All these costs add up, so be sure to include both interest rates and fees in your calculations. Comparing can help you find the best loan product for your business.
• Repayment terms. Which repayment terms suit your business's cash flow? Lenders offer repayment terms with varying degrees of flexibility. Some may allow you to repay the loan daily, weekly or monthly. Find a loan product that gives you the flexibility you need to manage your business.

Can I get a business loan for my start up or small business?

Business loans exist for start ups, however approval may be challenging as lenders often require proof of revenue or sales. Ensure you meet the lender's eligibility criteria, have a clear business plan, and have all the supporting documentation on hand in order to maximise your chance of approval

Small businesses will generally find approval easier, as they will have enough of a financial history for the lenders to look through. Again, to maximise your chance of approval - ensure you meet the lender's eligibility requirements, have a clear goal for the funding, and all the supporting documentation.

With both start up business loans and small business loans, the amount you will be able to borrow will depend on your financial and credit history, the age and revenue of your business, and also if you are able to secure the loan against commercial or personal property.

Is my business eligible for a loan?

Each lender will look at your application with their own eligibility criteria, so be sure to check before you apply. In general, most lenders will be looking at least at the following:

Age of the business

You'll usually need to have been operating for at least six months to a year for most unsecured business loans offered by alternative lenders and banks, but some do offer unsecured startup finance. Invoice factoring and equipment loans have less stringent criteria on business age, but you'll need to have been operating for at least one year for business overdrafts or lines of credit.

Turnover

Your business may need to be making a certain amount of turnover in order to be eligible for a loan. This revenue may be monthly or yearly and can range from $50,000 to $200,000+ p.a. Other lenders simply require you to connect your business's accounting software or financials as part of the application process so they can calculate a loan your business can afford.

Credit profile

The lender may check the personal credit histories along with the company's credit (unless you're a startup). If the business has unpaid defaults or tax debt, you may need to find a bad credit business loan. However, most invoice financing companies do not require perfect credit histories.

ABN/ACN

You'll need to have an Australian Business Number (ABN) or Australian Company Number (ACN) to qualify for any form of business finance.

Should I apply for a charge card instead of a business loan?

If you're looking for business finance, you could opt for either a business loan or a charge card. But there are significant differences between the two you may want to consider. These include:

If you're looking to apply for a charge card, we've curated a list of cards for you to compare:

Sort by:

Name	Product	Bonus points	Complimentary travel insurance	Annual fee	Interest-free period
American Express Platinum Business Card		300,000	Yes	$1,750	Up to 55 days on purchases	Available to ABN holders w/ $75,000 revenue. Features no pre-set spending limit with up to 55 days to pay for your purchases and a Flexible Payment Option. Plus, rewards, insurance covers and up to 99 additional cards for no annual fee.	Go to site More Info	Compare	loading Fetching your data...
American Express Qantas Business Rewards Card		150,000	Yes	$450	Up to 51 days on purchases	Available to ABN holders w/ $75,000 revenue. Features no pre-set spending limit with up to 51 days to pay for your purchases and a Flexible Payment Option. Plus, Qantas Points, travel insurance covers and up to 99 additional cards for no annual fee.	Go to site More Info	Compare	loading Fetching your data...
American Express Gold Business Card		100,000	Yes	$169	Up to 51 days on purchases	Available to ABN holders w/ $75,000 revenue. Features no pre-set spending limit with up to 51 days to pay for your purchases and a Flexible Payment Option. Plus, optional rewards and business travel insurance.	Go to site More Info	Compare	loading Fetching your data...
American Express Business Card		N/A	No	$109	Up to 51 days on purchases	Available to ABN holders w/ $75,000 revenue. Features no pre-set spending limit with up to 51 days to pay for your purchases and a Flexible Payment Option. Plus, the ability to make secure payments via American Express AccessLine.	Go to site More Info	Compare	loading Fetching your data...

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Frequently Asked Questions about business loans

Still have questions? We've done our best to answer the most common questions people have about business loans.

• How much can I borrow with a business loan?

  You can get a business loan from as little as $5,000 up to $100,000,000. How much your business can borrow will depend on the following:

  • The lender
  • The type of business loan you're applying for
  • Your annual turnover
  • The business purpose of the loan
  • Your personal and company credit rating
  • How long your business has been trading
  • Whether you have a deposit/security

  Smaller loans require less documentation and may have less strict lending criteria. For larger business loans, you will need to provide more documentation. This can include a detailed business plan, financial statements, proof of revenue, and an asset or cash security or deposit. The cost of these loans will also vary. To get an idea of what you can expect to pay, you can use our business loan calculator.

• What's the easiest business loan I can apply for?

  This depends on various factors including the lender (banks versus non-banks). Your business credit score and your business's financial position also play a role.

  Banks have strict lending criteria. They will ask for a lot of documentation to support your application. This can make the application process lengthy and extremely difficult. Banks are regulated by both the Australian Securities and Investments Commission (ASIC) and the Australian Prudential Regulation Authority (APRA). As a result, they have to conform to the standards set by both authorities. Non-banks, meanwhile, have more relaxed rules around eligibility. They are regulated only by ASIC, so they can be more lenient when it comes to their eligibility criteria.

  As a general rule, unsecured loans are the hardest loans to get. This is because there is no security or collateral involved, making the loan riskier for the lender. You will only be considered if your business's credit profile is excellent. You will also need to make enough money that the lender sees it as likely you can pay back the loan.

  The more money you are looking to borrow, the more difficult it will be to find a loan. The larger the loan, the higher the risk, even with security. Your business and revenue will need to be large, too. If you offer an asset as security, it will have to match the loan amount you're applying for. Your loan amount cannot exceed the value of your asset.

  Smaller business loans should be easier to apply for. This is especially the case if the loan is secured. For instance, invoice financing is secured against your outstanding invoices. Vehicle or equipment finance are secured against the asset purchased, and these will be easier to be approved for than a lump sum payment.

  Additionally, if you have a good and established relationship with your bank, you may be able to get a line of credit without too much hassle.

• Will business loan lenders look at my personal credit score?

  Yes, lenders may look at the personal credit scores of the individuals registered as business owners or on the board of directors. This is especially true if your business is young and does not have enough credit history for lenders to make an informed decision.

• Can a business loan impact my personal credit score?

  Business loan applications can affect your personal credit score, however generally this will only be damaging if you apply for many business loans in a short amount of time. This is another reason why it is important to compare your options first and ensure you meet the eligibility criteria, rather than apply for as many as possible.

• What is the difference between debt finance and equity finance?

  Many businesses use a combination of debt finance and equity finance to fund their operation, however there are some key differences to compare:

  	Equity finance	Debt finance
  Repayments	No repayments involved. You don't have to pay back the money you've raised, but you will be sharing your profits either in the short term or the long term.	You have to make regular repayments to the lender, which will include interest charges and ongoing fees. As a result, you'll be paying more than you borrowed.
  Turnaround time	It will take time to raise finances, and it may involve presenting to multiple investors.	Depending on the type of loan you apply for, you could get funding within a few days.
  Stake	The investor will have a stake in your business. You will no longer have 100% control or ownership. You will have to take their input into account when making a decision. There may be times when their strategic interest may not overlap with yours. Their expectation of the return on investment and when they expect it may be different from your projections.	The lender does not have a stake in your business whatsoever. Your only obligation is to repay the loan. Your relationship with the lender effectively ends once you repay the loan.
  Credit score	Your credit score does not play a role in your ability to attract investment. Nor will your credit score be affected, as there are no loan repayments involved.	Your credit score will determine your ability to get a loan. The total cost of the loan may also be influenced by your credit score. Not making repayments on time will eat into your credit score, affecting your ability to get credit in the future.
  Assets	You give up equity or shares in exchange for investment. You don't lose assets in case your business fails.	You retain your stake in your business, but you risk losing your assets if you default on your loan.
  Tax benefits	You don't get any tax benefits with equity financing.	Interest paid on debt is seen as a business expense. It is tax-deductible.