Compare Business Lines of Credit from 50+ Australian Lenders

A business line of credit is a revolving facility that allows you to draw, repay, and redraw funds within your approved limit—much like a credit card, but often with higher limits and lower interest rates. This flexibility makes it a powerful tool for Australian SMEs, sole traders, and growing businesses that need on-demand access to capital.

Unlike a traditional business loan that provides a one-off lump sum, a line of credit keeps funds available for whenever you need them. You only pay interest on the amount you draw, which makes it more cost-effective if you borrow strategically. Lenders typically assess turnover, trading history, profitability, and both business and personal credit scores before approving a facility.

The biggest advantage is control: you can use funds to cover short-term working capital needs, bridge seasonal gaps, purchase inventory, or act quickly on opportunities. Repayments replenish your balance, giving you ongoing access to funds without reapplying.

The trade-off is that lines of credit may come with higher fees than secured term loans, and lenders may require stronger financials or a personal guarantee. However, for many businesses, the convenience and flexibility far outweigh these costs. In short, a business line of credit is like having a safety net—ready to catch cash flow dips or fuel growth whenever you need it.

In Australia, business lines of credit typically range from $5,000 up to $1,000,000 depending on turnover, profitability, and credit profile. Lenders place weight on recent bank statements, trading history, and overall financial stability when setting limits. Because lines of credit are revolving facilities, repaying funds restores your available balance, giving ongoing access without needing to reapply. While credit limits can be substantial, lenders expect evidence that your business can responsibly manage repayments. Responsible borrowing ensures your line of credit remains a useful safety net rather than a financial burden.

Saving money on a business line of credit comes down to how you use it. Because you only pay interest on what you draw, borrowing strategically helps keep costs low. Avoid treating the facility as free cash flow—always have a plan for repayments.

Comparing multiple lender offers is also critical, as credit limits, fees, and rates vary widely. Look for hidden costs such as annual facility fees, transaction charges, or penalties for late repayments. If your business has strong cash flow, repaying quickly after drawing funds reduces the interest charged and keeps the facility ready for future needs.

Finally, align your use of the line of credit with revenue-generating activities. For example, using it to purchase inventory you know will sell is smarter than covering long-term expenses. This ensures the credit works for you, not against you.