Business loans
Funding for trading businesses. That covers working capital and credit lines through to buying a business or expanding one. We compare secured and unsecured options from banks, non-banks and private lenders and match the loan to your cash flow.
Common uses
Working capital
Smooth out cash flow, fund stock or cover seasonal gaps.
Lines of credit and overdrafts
Draw funds when you need them and only pay interest on what you use.
Business acquisition
Buy a business, buy out a partner or fund a succession plan.
Growth and expansion
Fund new locations, new staff, fitouts and marketing.
How a credit team reads a business loan
Business lending comes down to one question. Can the business comfortably repay the loan from its own cash flow? These are the things a credit team looks at to answer it.
Time trading and industry
Most banks want to see at least two years of trading. Some non-bank lenders will look at a business with less history. Lenders also have different appetites for different industries so the same numbers can get a different answer depending on what you do.
Profit and cash flow
Credit starts with your financial statements and tax returns and works out what the business earns before interest and depreciation. That figure has to cover the new repayments and your existing debts with room to spare. Any costs added back to profit need to be documented.
Bank statements
Lenders read your business bank statements closely. Dishonoured payments and regular overdrawn days count against you even when turnover is strong.
Existing debts and the ATO
Credit checks what the business already owes including other loans, leases and any tax debt. An ATO debt on a payment plan is usually workable. One that has been left to build up is a red flag but it can still be worked with if there's a good explanation for it.
The directors
When a company or trust borrows the directors usually guarantee the loan. That means their personal credit history matters as much as the business's.
Security
Property security usually gives you more lender choice and lower rates. Without it lenders rely on a general security agreement over the business assets and a director guarantee. Expect lower limits and higher rates.
Four steps, one point of contact
Tell us the plan
What you are trying to do and the approximate amount.
Get a straight answer
Whether it is fundable and which lenders suit it.
Compare the options
Rates, structure, fees and conditions side by side.
Through to settlement
Application prepared, submitted and managed.
Why business loans get declined and what to fix first
From the credit side these are the issues that sink business loan applications most often. Most of them can be fixed before you apply.
- Tax lodgements are behind
Lenders want up to date financials and BAS. Get any overdue lodgements done first because an application with gaps stalls straight away. But some lenders may still assess your situation so speak to us if you're unsure.
- The ATO debt isn't on a plan
Set up a payment arrangement with the ATO before you apply or include the debt in the new loan. ATO debt refinancing →
- Bank statements show stress
A few months of clean statements with no dishonours makes a real difference. If there have been problems a short written explanation helps the credit team understand them.
- Too many recent applications
Applying to several lenders at once leaves multiple enquiries on your credit file. To a credit team that can look like you've been turned down elsewhere.
- Buying a business with too little behind it
Lenders rarely lend against goodwill alone. They want to see experience in the industry, a solid contribution of your own and ideally some property security.
Can I get a business loan without property security?
Yes. Unsecured business loans are available but they usually come with lower limits, higher rates and shorter terms. Some lenders also take repayments weekly so check the loan suits your cash flow.
What documents do I need?
Usually two years of financial statements and tax returns, recent BAS, business bank statements and ID. Low doc options are available for some businesses. Low doc loans →
How long does a business loan take?
Some non-bank lenders can move within days on smaller unsecured loans. Bank facilities usually take longer. We'll give you a realistic timeframe at the start.
Will I need to give a personal guarantee?
Usually yes. When a company or trust borrows most lenders ask the directors to guarantee the loan personally.
Can I get a business loan if I have an ATO debt?
Often yes. Lenders want to see the debt on a payment plan or cleared as part of the new loan. Some lenders specialise in refinancing tax debt. ATO debt refinancing →
Can I borrow to buy a business?
Yes. Lenders look at the business's trading history, your experience in the industry and how much you're putting in. Property security will widen your options.
What's the difference between an overdraft and a line of credit?
An overdraft is attached to your business transaction account. A line of credit is a separate facility you draw on when you need it. With both you only pay interest on what you use and most are reviewed every year.
Tell us what you need.
No documents needed to start. Call (02) 7822 0255 or 0481 877 727, or answer a few quick questions.