Getting a small business loan in Australia comes down to three things: knowing what a lender wants to see, having your paperwork ready before you apply, and choosing the right type of loan for what you actually need the money for. Get those three right, and the rest of the process is straightforward. Get them wrong, and even a strong business can end up with a declined application or a loan that costs more than it should.
This guide walks through exactly how to get a small business loan in Australia, step by step, including what lenders look at, how much you might be able to borrow, and where a broker can make the process easier.
A small business loan is money borrowed for a business purpose, whether that is covering day to day cash flow, buying stock or equipment, hiring staff, or funding an expansion. Unlike a personal loan, a small business loan is assessed against your business’s income, trading history, and purpose for the funds, not just your personal credit file.
Loans generally fall into two broad categories:
Beyond that split, you will also come across term loans (a lump sum repaid over a fixed period), business lines of credit (draw down what you need and pay interest only on that amount), business overdrafts, and equipment or asset finance for vehicles and machinery.
Here is the process most Australian lenders and brokers will take you through when you apply for a business loan.
Before you start comparing options, get specific about the amount and the purpose. Lenders respond better to a clear number tied to a clear reason (for example, $40,000 for new equipment) than a vague request to top up cash flow. This also helps you avoid over borrowing and paying interest on money you did not need.
Most lenders look for a mix of the following before approving a business loan application:
If your credit history needs some work before you apply, our guide on Credit Score in Australia: What It Means for Your Loan Application breaks down what lenders actually look at and how to improve your position first.
Being prepared here is what separates a fast approval from a frustrating back and forth. Most business loan applications ask for:
This is where most of the cost difference in a business loan comes from. A secured business loan from a major bank might sit well below a short term unsecured loan from an online lender, but it will also take longer to settle and require an asset as security. Comparing options properly, rather than accepting the first offer, is one of the most valuable steps in the whole process.
Applications for a business loan can usually be lodged online or through a broker. A broker can be useful here because they can put your application in front of multiple lenders at once, rather than you approaching each bank one at a time and collecting separate credit checks along the way.
Turnaround time depends heavily on the lender and loan size. Simple unsecured facilities with online lenders can be assessed within a day or two. Secured commercial loans through a bank generally take longer, since they involve property valuation and more detailed credit assessment.
Lenders assess a business loan application against a handful of consistent factors, sometimes referred to as the five Cs of lending:
Loan amounts for a small business loan in Australia range widely, from a few thousand dollars for a short term unsecured facility up to several million for a secured commercial loan against property. How much you can borrow depends on your turnover, trading history, and whether you are offering security.
Interest rates move with the official cash rate set by the Reserve Bank of Australia (RBA), which sits at 4.35% per annum as at September 2026, with the RBA’s next decision due on 29 September. As a general rule, secured business loans track closer to home loan style rates, while unsecured business loans carry a noticeably higher margin because the lender is taking on more risk without an asset behind the loan. The exact rate you are offered will still depend on your individual risk profile, the lender, and current market conditions, so it is worth getting a personalized quote rather than relying on a headline rate advertised online. Our business loan interest rates guide breaks this down in full.
A broker will not change your eligibility, but they can save you time and help you avoid applying to lenders who were never going to approve your loan in the first place. This matters in a lending environment where the Australian Small Business and Family Enterprise Ombudsman has repeatedly highlighted how confusing loan applications can be for time poor business owners.
If you would rather have someone compare business loan options on your behalf and handle the paperwork with you, Lodestar Finance’s Business Loans service does exactly that, comparing lenders across our panel to find a loan structure that suits your business rather than pushing you toward a single bank’s product.
FAQs
It depends on your trading history, turnover, and whether you are offering security. A newer business without assets to secure a loan will generally find it harder to get approved than an established business with 2 or more years of consistent trading and a clean credit file.
Yes, unsecured business loans are widely available, particularly through online and non bank lenders. They are faster to arrange but typically carry a higher interest rate than a secured business loan.
Most standard business loans do not require a deposit in the way a home loan does, though lenders may ask for a personal guarantee or a portion of the funding to come from the business itself, particularly for a business purchase loan.
Simple unsecured applications can be approved within a day or two. Secured loans involving property or larger amounts generally take longer due to valuation and credit assessment requirements.
A broker does not replace the bank, they work alongside multiple lenders including banks to compare options for you. This is useful if you are unsure which lender is likely to approve your application or want to avoid submitting several separate applications yourself.
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