Business loan interest rates explained
There is no comparison rate on a business loan and most lenders publish a base rate rather than the rate you will pay. This guide explains how a business rate is built from a base plus a margin, the difference between fixed, variable and bank bill pricing, what NAB, Westpac, BankSA, IMB and the fintechs publish, what a good rate looks like for each product, and what moves your margin up or down.
- Rates are built as a base rate plus a margin: Westpac and BankSA publish base or indicator rates with a margin depending on security; NAB publishes prime rates and bank bill pricing periods
- Three pricing bases: variable (moves with the base), fixed (reverts to variable base plus margin at the end, Westpac) and bank bill (resets off the swap rate, NAB)
- No comparison rate: business lending is outside the National Credit Code, so compare total cost in dollars including establishment and line fees
- The published range runs from about 6.05% on low-LVR commercial property (Emu Money, April 2026) to 21.74% on a NAB business card cash advance
- What moves the margin: security type, LVR, trading history, financials, industry and credit; a 2% to 3% spread within one lender is normal
WARNING: This comparison rate is true only for the example given and may not include all fees and charges. Different terms, fees, or other loan amounts might result in a different comparison rate. Comparison rates are based on a secured loan of $30,000 over 5 years for vehicle finance and $50,000 over 5 years for equipment finance, as required under the National Credit Code.
How is a business loan interest rate set?
As a base rate plus a margin. The base is the lender's published reference rate for that product and moves with its funding costs; the margin is the loading for your security, size and risk, and is the part that is negotiated. Westpac publishes its business loan rates this way: an Overdraft Business Rate and a Small Business Overdraft Rate as bases, a 30-day bank bill rate as the base for invoice finance, and a note that a margin may apply depending on the type of security. BankSA publishes indicator rates to which a margin is added, and lists its commercial loan rate as no longer for sale plus a separate overdue rate. NAB publishes a business overdraft prime rate, a QuickBiz prime rate and bank bill pricing. What none of them publish is the rate you will get, because the margin is set on the file.
Fixed, variable or bank bill?
| Pricing basis | How it moves | What lenders publish | Best suited to |
|---|---|---|---|
| Variable | Rises and falls with the lender's base rate; repayments change | Westpac: repayments rise and fall with the rate; IMB publishes variable business rates by security type | Loans you may repay early or draw down and repay, such as overdrafts and lines of credit |
| Fixed | Held for an agreed term, then reverts | Westpac: reverts to a variable base rate plus any margins current at the time; ING commercial: fixed 1 to 5 years, extra repayments under $20,000 a year without break costs; ANZ and NAB vehicle loans fixed for the term | Term loans and equipment where you want certainty on repayments |
| Bank bill | Resets off the bank bill swap rate each pricing period | NAB publishes pricing periods under and over 3 months; Westpac uses a 30-day bank bill rate for invoice finance | Larger commercial loans where the borrower wants market pricing and can manage resets |
What do lenders actually publish?
Checked against each lender's published business rates page on 20 September 2026. The point of the table is what each lender discloses, not a rate comparison; most business rates are quoted on application.
| Lender | What the rates page publishes | Margin disclosure | Other published detail |
|---|---|---|---|
| NAB | Business overdraft prime rate, QuickBiz prime rate, bank bill pricing for periods under and over 3 months, business card cash advance rates of 21.74%, 16.50% and 13.99% | Customer margin applied to the prime rate on the file | Secured and unsecured business loans, terms 30 days to 15 years; QuickBiz overdraft to $50,000 |
| Westpac | Base rates: Overdraft Business Rate, Small Business Overdraft Rate, 30-day bank bill rate for invoice finance | A margin may apply depending on the type of security | Fixed loans revert to variable base plus margin at the end of the term; $0 establishment fee offer on new or top-up overdrafts to $1M (saving $1,500 or $750) |
| BankSA | Indicator rates by product; commercial loan rate marked no longer for sale; overdue rate | Margin added to the indicator rate | Westpac Group brand; same structure as St.George and Bank of Melbourne |
| IMB Bank | Variable business loan rates listed by security type | Built into the listed rate by security | Mutual; residentially secured business loans priced lowest |
| Suncorp Bank | Does not publish a single business lending rate on its overdraft page | Quoted on application | Overdraft: variable, no set term, interest on the used portion, 0.75% p.a. line fee |
| CommBank | Rate quoted on application for the business overdraft | Not published | Unsecured overdraft $2,000 to $250,000; one-off establishment fee; 1.70% p.a. line fee |
| ING (commercial property) | Fixed and variable, rate on application | Not published | Fixed 1 to 5 years reverting to variable; loans $500,000 to $8M |
| Emu Money (broker guide) | Commercial property rates from about 6.05% to above 14%, April 2026 | 0.25% to 0.75% saved per 10% of LVR; 2% to 3% spread within one lender | Explains pricing by LVR, property type and borrower profile |
What is a good rate, by product?
Because the rate follows the security, the honest answer is a range per product rather than a single number. In order of published cost, lowest first:
- Residentially secured business loans. Closest to home loan pricing; IMB lists these as its lowest business rates and Emu Money's commercial range starts at about 6.05% for low-LVR property.
- Commercial property loans. From about 6.05% at low LVR to above 14% on specialised or low-doc files (Emu Money, April 2026). See the commercial property loans guide.
- Vehicle and equipment finance. Fixed for the term and secured by the asset; Westpac publishes up to 1% off for an electric vehicle and CommBank a 1% green discount, which shows how much the asset type moves the rate.
- Secured overdrafts and lines of credit. Base rate plus a security margin, plus a line fee on the limit (Suncorp 0.75% p.a., CommBank 1.70% p.a. unsecured).
- Unsecured term loans and fintech cash flow loans. The widest spread, priced on trading history and bank statements rather than security. See unsecured business loans.
- Business credit card cash advances. The dearest published major-bank rate: NAB 21.74%, 16.50% and 13.99% by card.
What moves your rate up or down?
| Factor | Effect on the margin | Published evidence |
|---|---|---|
| Security offered | Largest single lever: property, then vehicles and equipment, then unsecured | Westpac: margin depends on the type of security; IMB rates listed by security |
| Loan-to-value ratio | Lower LVR, lower margin | Emu Money: 0.25% to 0.75% saved per 10% reduction in LVR |
| Trading history and financials | Two years of clean financials and a clear ATO position price best; under 12 months trading narrows the field | CommBank overdraft page notes conditions for businesses trading under 12 months; a vehicle lender cited by Money.com.au requires 12 months of GST registration |
| Loan size and term | Larger loans on longer terms access bank bill pricing; short unsecured loans carry the highest rates | NAB: bank bill pricing periods; terms 30 days to 15 years |
| Asset type | Green assets discounted; specialised property loaded | Westpac up to 1% off for EVs; CommBank 1% green discount; Emu Money on specialised property risk |
| Cash rate and funding costs | Moves the base, not the margin | RBA publishes lenders' rates 5 business days after month end; cash rate 4.35% at the August 2026 meeting |
Comparing offers without a comparison rate
Ask each lender for four numbers: the rate and whether it is fixed, variable or bank bill; the establishment fee; the ongoing line, service or annual fee; and the cost of repaying early. Put them into the business loan calculator over the period you expect to hold the loan, not the contract term, and compare the total in dollars. A loan with a lower rate and a 1.70% line fee on a limit you rarely use can cost more than a slightly dearer loan with no line fee. A broker does this across lenders in one pass and negotiates the margin, which is the only part of the rate that moves for you. Your Finance Guide refers you to one licensed broker partner; we do not lend, quote or set rates.
Business lending guides
Products, security and the cost of each.
Business loan interest rate FAQs
What is a good interest rate on a business loan?
Why is there no comparison rate on business loans?
How are business loan interest rates calculated?
What is the difference between fixed, variable and bank bill rates?
Do business loan rates follow the RBA cash rate?
What fees sit on top of the interest rate?
Why did my business get quoted a higher rate than the advertised one?
Are business loan interest payments tax-deductible?
Find out what your rate would be
Tell us the amount, the purpose and the security you can offer, and we refer you to one licensed broker partner who prices the file across lenders and negotiates the margin. Free for borrowers, no obligation.