From working capital to equipment and commercial property, business lending in Australia covers a wide range of needs. Here's how to navigate it — and how a broker helps.
- Business loan types range from unsecured working capital to secured commercial property finance.
- Lenders assess business loans on revenue, trading history, assets, and personal financial position.
- Startup business loans are harder to obtain — alternatives include equipment finance and government schemes.
- A business finance broker compares lenders and structures the right facility for your cash flow needs.
Whether you're funding a fit-out, bridging a cash flow gap, buying equipment, or purchasing commercial premises, understanding the business finance landscape in Australia is the first step to accessing the right product at the right cost.
Types of Business Loans
Unsecured business loans: no property or asset security required. Approved based on business revenue, trading history, and creditworthiness. Loan amounts typically $5,000-$500,000. Terms 6 months to 5 years. Higher rates (often 10-25%) but fast approval — sometimes 24 hours.
Secured business loans: secured against an asset — commercial property, residential property, or business assets. Lower rates (from around 6-8%), higher amounts, longer terms.
Business line of credit: a pre-approved credit limit you draw from as needed. Interest charged only on the amount drawn. Useful for managing working capital or unexpected expenses.
Working capital finance: short-term facility to cover operational costs — wages, inventory, supplier payments. Often structured as invoice finance or a revolving credit facility.
Equipment and asset finance: finance for machinery, vehicles, technology. Structured as chattel mortgage, finance lease, or hire purchase. See our equipment finance guide for a full breakdown.
Commercial property loans: finance for purchasing or refinancing business premises. Typically 65-70% LVR. See our commercial property loans service page.
What Lenders Assess for Business Loans
Trading history: most mainstream lenders require 2 years of ABN registration. Some specialist lenders work with 12 months. Revenue: bank statements (typically 6-12 months) are the primary evidence. Profitability: business tax returns or BAS statements. Personal financial position: most SME business loans require a personal guarantee. Industry: some lenders are more conservative on certain industries (hospitality, retail).
Business Loans for New Businesses
Startup business loans are the hardest to obtain — lenders can't assess historical trading performance. Options include equipment finance (the asset is the security), invoice finance if you have confirmed debtors, government-backed finance programs, and secured lending against residential property you own.
Unsecured vs Secured Comparison
| Unsecured | Secured | |
|---|---|---|
| Speed | Fast (24-48 hrs) | Slower (valuation required) |
| Rate | Higher (10-25%) | Lower (6-12%) |
| Amount | Up to $500K typically | Higher amounts available |
| Best for | Working capital, short-term | Equipment, premises, larger amounts |
Working with a Business Finance Broker
A business finance broker accesses lenders that aren't available directly, structures the right facility for your needs, and helps prepare your application. This matters particularly when you've been declined by your bank, need a non-standard structure, or want to compare rates across mainstream and specialist lenders. Moneysmart's small business loans guide provides a balanced independent overview.
Ready to discuss your business finance needs? Contact Sam — we arrange business loans, equipment finance, and commercial property finance for SMEs across Western Sydney and nationally.
Frequently Asked Questions
Can I get a business loan with bad credit?
Often yes, particularly for secured lending where an asset provides security. Unsecured business loans with impaired credit are harder but available through specialist lenders at higher rates.
How long does a business loan approval take?
Unsecured business loans can be approved in as little as 24 hours with some fintech lenders. Secured commercial loans typically take 2-4 weeks due to property valuation requirements.
