Compare Business Loan Interest Rates High Approval & Fast Funding
When you need to compare business loan interest rates, our LendIQ™ system finds your ideal loan from 80+ lenders. Get funded with $5k−$10M+ in as little as 4 hours.
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The Australian Lending Market: Key 2025 Insights for Small and Medium-sized Enterprises
Insights from our own platform data reveal key trends for Australian small businesses seeking capital. Here are some of the key lending trends:
How Business Funding Works
A business loan allows a business to fund its operations and growth without needing to make a large upfront investment. Instead, you get the capital now and pay for it over an agreed period, preserving your working capital. It's a strategic tool to solve immediate problems or seize new opportunities.
- Borrow anywhere from $5,000 to over $10 Million: Lenders can fund any legitimate business need, from a new point of sale system for your cafe to a full factory fitout.
- Loan terms from 3 Months to 7 Years: Match your repayment schedule to your project timelines.
- Secured & Unsecured options available: Use an asset to lower your rate or prioritise speed and flexibility.
- Weekly, fortnightly or monthly repayments to suit your revenue cycle: Align payments with your revenue cycle.
- Business loan interest and fees may be tax-deductible: Consult with your accountant for specific advice.
The core principle of a business loan is leverage. It allows you to use borrowed capital to generate a return greater than the cost of borrowing. For example, a retailer might take out a short-term loan for inventory financing before a busy season, knowing the sales will more than cover the loan repayments and interest. Similarly, a construction company might use an equipment loan to acquire a new excavator, enabling them to take on larger, more profitable contracts immediately. The key is to match the type of loan to the business goal. A short-term cash flow gap requires a different solution (like an unsecured loan or line of credit) than a long-term asset purchase (like a secured loan or commercial mortgage).
Business Loan Eligibility: Check Your Requirements for Fast Funding
Let’s answer your most important question: “Can I get a loan?” Lender requirements are often more flexible than what major banks demand. Many funding doors can open by focusing on your business's real world performance.
- ABN & Business Structure: You must have an active ABN and operate as a Sole Trader, Company, or Trust.
- Minimum Trading History: You generally need to have been trading for at least 6 to 12 months.
- Minimum Annual Turnover : Lenders typically look for at least $10,000 per month in sales, with $50,000 in monthly turnover being the average of what what we see businesses applying for loans with.
- Residency: At least one director must be an Australian citizen or permanent resident.
Guidance for Complex Scenarios (Where Specialist Lenders Excel):
- For Bad Credit History: While banks often say 'no' to past credit issues, we see a 70% approval rate for applicants with a strong business and a paid default on their file.
- For Non-Homeowners: Not owning property does not have to be a barrier. Close to 50% of our approved unsecured loans go to clients who are not homeowners, with consistent revenue being the key factor for approval. We can get up to $200,000 of working capital finance for non-asset backed business owners.
What Impacts Your Business Loan Interest Rate?
Your final interest rate is a reflection of how lenders view your business's risk profile. Whether you opt for a business variable rate or a fixed rate loan, understanding the key factors they assess empowers you to present your business in the strongest possible light and secure a more competitive rate. Key factors include:
- Business History & Revenue: A longer trading history with consistent, strong revenue demonstrates stability and reduces perceived risk, often leading to lower rates.
- Credit Score : Both your personal and business credit scores are critical. A clean credit history signals reliability and is a primary factor for top-tier rates.
- Security Provided: Secured loans, which are backed by an asset like property, have significantly lower interest rates than unsecured loans because the lender's risk is minimised.
- Loan Amount & Term: The size of the loan and the length of the repayment period can also influence the rate offered by the lender.
- Industry: Lenders assess risk based on industry trends. Businesses in sectors with a stable income stream may be offered more favourable terms.
Your Questions Answered
A secured loan is backed by an asset, like property or equipment, which usually results in a lower interest rate because it reduces the lender's risk. An unsecured loan does not require collateral and is based on your business's revenue, making it faster to arrange but typically with a higher interest rate.
The time for approval varies significantly. Traditional banks can take several weeks to process an application. In contrast, many online and specialist lenders have streamlined digital processes that can lead to approval and funding within 24 to 72 hours, with some achieving same-day funding, provided all the required documentation is in order.
An initial enquiry or eligibility check with most modern lenders or brokers is considered a 'soft credit check' and will not affect your credit score. However, submitting a formal loan application will result in a hard enquiry on your credit file, which can have a small impact on your score.
How to Apply for a Business Loan
A prepared and well-organised application is the key to a fast and successful outcome. By getting your financial information in order and understanding what lenders look for, you can significantly improve your chances of a quick approval
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Calculate Your Loan Repayments
Use our suite of calculators, like the business loan calculator, to plan your finances.
Should you choose a secured or unsecured business loan?
This is one of the most common questions business owners face when seeking a loan. An unsecured business loan is a popular choice. The answer depends on your priorities: cost versus speed.
An unsecured loan's main advantage is speed. Because no collateral needs to be valued, the process is streamlined, and funds can often be available within 24-72 hours. This makes it ideal for urgent needs like covering an unexpected bill or seizing a time-sensitive opportunity. However, the lender takes on more risk, so the interest rate is higher.
A secured loan, on the other hand, uses an asset (like property or equipment) as security. For any secured business loan, this significantly reduces the lender's risk, which means they can offer a much lower interest rate. For a business with a strong financial profile, securing a loan with residential property can result in an interest rate up to 30% cheaper. The trade-off is a longer application process, as the asset needs to be formally valued. This option is best for large, planned investments where minimising the total cost of the loan is the primary goal.
Your Comprehensive Business Loan Questions, Answered
The best way to ensure a competitive rate for your rate loan is to compare multiple offers from different lenders. Rates can vary significantly based on the lender's risk appetite and your business profile. Using a comparison service or a broker gives you access to a wider market of over 80 lenders than approaching your bank alone. Also, check your rate against current market benchmarks for your industry and credit profile.
Yes, it is possible. While many traditional banks may decline an application with an outstanding ATO debt, many specialist non-bank lenders are willing to consider it, especially if you have a managed payment plan in place with the ATO and are up to date with payments. They will see this as a sign of responsible financial management. Successful hospitality business owners Julian and Mikey were able to secure $600,000 to fit out a new pub, despite an ATO position, after their existing bank was unable to assist.
Our process is designed to find the most competitive loan for your specific situation. We don't work for one bank; we work with a panel of over 80 trusted lenders. Our service is free to you because we are paid a commission by the lender upon successful settlement. This ensures we are focused on getting you a successful outcome, not on charging you fees.
What Happens After Your Loan Has Been Approved
Congratulations! The final steps are fast and digital. Your lender will send you the loan documents for electronic signing. Once you have reviewed and signed, funds are typically transferred directly to your account. For most loans, this happens on the same day. Your finance specialist remains available to you, ensuring a smooth conclusion to your funding journey.
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Our promise: no credit score impact