Small business loans in Australia

What is a small business loan?

A small business loan is business finance sized for an SME: usually $5,000 to $2 million, for a business the ABS would call small (fewer than 20 employees) or a little larger. The money can fund almost any legitimate business purpose, from stock and wages to equipment, a fit-out or buying another business.

The market has two halves. The banks price lowest, want financial statements and often an existing relationship, and ask for security above their unsecured limits. The online lenders decide on bank-statement data, publish floors most trading businesses clear, and charge more for that access and speed.

A broker works across both halves, so a sole trader needing $10,000 for a marketing push and an established SME looking at $1 million for expansion each get compared against the lenders that actually write that size and shape of loan.

Types of small business loans

The right product depends on the purpose, the urgency, the security you can offer and how the money will be repaid.

Term loans

A lump sum repaid over a fixed period with regular instalments. Suits one-off purchases, investments or projects with a defined cost. Terms run from 3 months to 7 years depending on the lender and whether the loan is secured. See business term loans.

Lines of credit and overdrafts

A revolving limit you draw on as needed, paying interest only on what is drawn. Suits cash flow that swings within the month or the season. See the business line of credit guide.

Invoice finance

Releases cash tied up in unpaid customer invoices, usually up to 80% of the invoice value upfront. Valuable for businesses on long payment terms. See invoice finance.

Equipment and asset finance

Funds a specific asset such as a vehicle, machinery, IT equipment or a fit-out. The asset is the security, which makes approval easier and the rate lower than an unsecured loan. See equipment finance.

What makes a strong small business loan application

Lenders assess small business loan applications on a handful of factors. Knowing them helps you prepare a stronger application and access better rates:

• Revenue consistency: Regular, predictable revenue in your bank statements and BAS returns shows lenders you can service the loan.
• Trading history: Online lenders publish floors from four to twelve months of trading. Longer histories generally mean more options and better rates.
• Credit profile: Both personal and business credit histories are assessed. Clean credit with no defaults or late payments opens the most doors.
• Available security: Property or assets as collateral reduce the lender's risk and unlock lower rates and higher limits.
• Loan purpose: A clear, productive purpose (such as equipment that generates revenue) is viewed more favourably than a vague one.
• Industry sector: Construction, hospitality and retail may face more scrutiny, while professional services and healthcare are often viewed favourably.

If your paperwork is thin, low doc business loans assess on bank statements and BAS; if you are new, see startup business loans.

Grants and government support

Government support mostly comes as grants, rebates and advisory programs rather than loans, and it opens and closes in rounds. The business.gov.au grants and programs finder lists federal, state and local programs by location and industry.

Each program has its own eligibility rules, and most fund a specific purpose rather than general working capital. Treat a grant as a supplement to borrowing rather than something to plan around, and check its status on the official page first: the NSW and South Australian grants covered in the FAQs below had closed by 30 September 2026.