Access to business finance is critical for Australian small and medium businesses. Here is a comprehensive overview of business loan rates, types, and what lenders look for in 2026.
Types of Business Loans in Australia
| Loan Type | Rate From | Best For |
|---|---|---|
| Unsecured Business Loan | 8.00% | Working capital, fast funding, no assets |
| Secured Business Loan | 6.50% | Larger amounts, lower rate with security |
| Business Line of Credit | 9.00% | Flexible drawdown as needed |
| Equipment Finance | 6.99% | Vehicles, machinery, equipment |
| Invoice Finance | 2–4% fee | Cash flow against unpaid invoices |
| Small Business Overdraft | 10.00%+ | Short-term cash flow gaps |
Instant Asset Write-Off (2025-26)
The instant asset write-off threshold for 2025-26 allows eligible small businesses (turnover under $10M) to immediately deduct the full cost of eligible assets purchased and first used or installed in the income year, up to $20,000 per asset. This makes equipment finance particularly attractive from a tax perspective — speak to your accountant.
What Business Lenders Assess
- Time in business — most require 2+ years trading; some online lenders accept 6 months+
- Annual turnover — typically $75,000–$100,000 minimum for unsecured loans
- Profitability — ability to service the debt from business income
- Credit score — both business and personal credit history
- Assets / security — real estate security unlocks better rates and higher amounts
SME Lenders — 2026
Major SME lenders in Australia include the Big 4 banks (ANZ, CBA, NAB, Westpac), specialist business lenders (Prospa, OnDeck, Moula, Lumi), and equipment financiers (Westlawn, Macquarie). Online lenders typically offer faster approvals (24–48hrs) but higher rates than bank financing.
Calculate Business Loan Repayments
See your estimated monthly repayments on any business loan amount.
Disclaimer: General information only. Not financial advice. Always consult a licensed professional before making financial decisions.