Compare Business Overdrafts from 50+ Australian Lenders

Link an overdraft to your business account and access extra funds when cash is tight. Pay interest only on the amount you use.

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Business Overdraft Australia
Emu Money Business Overdraft

Business Overdrafts Made Simple

Attach an overdraft facility to your business account for short-term cash flow support. Ideal for SMEs and sole traders who want a flexible safety net to manage seasonal fluctuations, pay suppliers, or cover payroll on time.

Flexible Limits

Typical overdrafts range from $10,000 to $250,000

Pay as You Use

Interest applies only on the overdrawn balance

Linked to Your Bank Account

Funds draw automatically when your balance drops

No Fixed Term

Overdrafts remain active while your account is in good standing

Short-Term Solution

Designed for immediate, not long-term, financing

Preserve Cash Flow

Cover gaps between expenses and receivables

How it works

A business overdraft sits alongside your everyday bank account, automatically covering payments when your balance runs low.

1.

Apply in minutes

Tell us about your business and connect your bank account so lenders can review your eligibility.

2.

Get matched

Our Lender Match technology compares overdraft offers from multiple lenders.

3.

Approval

Once approved, the overdraft is linked to your business account, ready for use.

4.

Use when needed

When your account balance drops below zero, the overdraft automatically covers payments up to your limit.

How Business Overdrafts Work

Backed by over 50+ lenders

Giving you the best chance of being approved.

Affordable Car Loans
Alex Bank
Angle Finance
ANZ
Australian Motorcycle & Marine Finance
Australian Premier Finance
Automotive Financial Services
Azora
Bank of Melbourne
Bizcap
BOQ
Branded Financial Services
Capify
Capital Finance
CarStart Finance
CFI
Dynamoney
EarlyPay
Equity Tap
Finance One
Finstro
Firstmac
Flexi Commercial
Green Light Auto
Grenke
Latitude
Liberty
Lumi
Metro
Money3
MoneyMe
MoneyPlace
Morris Finance
Moula
Multipli
Now Finance
Pepper Money
Plenti
Prospa
Resimac
ScotPac
Selfco
Shift
SocietyOne
UME Loans
Vestone
Westpac
Wisr
Yellow Gate

Ready to get started?

Compare business overdraft facilities from over 50+ lenders with one simple application.

A quick guide to business overdrafts

A business overdraft is a revolving credit facility linked directly to your trading account. It allows your balance to go into negative up to an agreed limit, providing a safety net when cash flow is tight. You only pay interest on the overdrawn balance, and the facility remains available as long as your account is in good standing.

Unlike a business loan that provides a lump sum, overdrafts are designed for short-term use and day-to-day flexibility. They’re commonly used to cover payroll, pay suppliers, purchase stock, or bridge invoice gaps.

While overdrafts provide fast access to funds without the need to reapply, they often carry higher interest rates than secured loans and may include annual facility fees. For many Australian businesses, the benefit of automatic, always-available funds makes overdrafts a vital cash flow tool, especially during seasonal or unexpected downturns.

Want to skip ahead?

This guide is broken down into the following sections. Click a link if you want to skip ahead.

What can I use a business overdraft for?

Overdrafts are best for short-term or unexpected business needs. Common uses include:

Cash Flow Management

Bridge short-term gaps in income and expenses by allowing your account to temporarily go into negative.

Unexpected Expenses

Cover emergency repairs, urgent bills, or unplanned costs without delaying operations.

Inventory Purchases

Order stock ahead of peak demand or take advantage of supplier discounts with overdraft support.

Short-Term Funding

Finance temporary projects or working capital needs without committing to a lump-sum loan.

Payroll Management

Ensure staff are paid on time, even if invoices are still outstanding.

Supplier Payments

Pay suppliers promptly to maintain strong relationships and supply continuity.

Seasonal Demand

Smooth out the highs and lows of seasonal income with an always-available buffer.

Business Opportunities

Act quickly on unexpected opportunities with immediate access to funds.

Invoice Gaps

Keep operations running while waiting on client payments to clear.

Tax Payments

Use overdraft funds to meet tax obligations on time and avoid penalties.

Case Study

Business Overdraft Case Study

James Walker, JW Constructions

Keeping Staff Paid with a Business Overdraft


Industry: Construction

Challenge: Delayed client payments created a payroll shortfall.

Solution: A $50,000 overdraft facility linked to the business account.


James runs a small construction company and faced a cash flow crunch when two major client invoices were delayed. With payroll due, he drew on a $50,000 overdraft to cover wages and supplier bills. Once payments came through, the overdraft was repaid automatically. Having the facility in place gave James confidence that staff and projects would never be disrupted by late payments again.

How much can I borrow with a business overdraft?

In Australia, business overdraft limits typically start from $10,000 and can extend to several million for established companies. Most SMEs access facilities between $10,000 and $250,000. The limit depends on your turnover, cash flow, and banking history. Lenders assess financial statements, profitability, and credit profiles before approving. Overdrafts are usually unsecured, but some lenders may require a personal guarantee. Always borrow responsibly and ensure your business can comfortably repay the overdrawn balance.

Business Overdraft Cost Calculator

Estimate interest costs for using an overdraft. Adjust the limit, term, and interest rate to see potential costs.

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Am I eligible for a business overdraft?

Business overdrafts are linked to your trading account, so eligibility often depends on your banking relationship and account history. Lenders also review credit history, turnover, and trading time.

You may be eligible if you are:

  • An Australian citizen or permanent resident

  • Over 18 years old

  • Trading for at least 12 months

  • Minimum monthly turnover of $10,000

  • Holding an active business bank account

How to apply for a business overdraft?

Complete a quick application with details of your business account and turnover. We’ll match you with overdraft offers from 50+ lenders. Once approved, the overdraft is linked to your bank account and available for immediate use.

Documents you may need:

  • ABN and GST registration details

  • Photo ID (passport or driver’s licence)

  • Recent business bank statements

  • Financial statements or tax returns

How to save money on a business overdraft

Because overdrafts are designed for short-term use, the best way to save money is to minimise how long your account stays in the negative. Repaying quickly reduces interest costs and keeps the facility ready for emergencies.

Compare multiple overdraft offers, as facility fees and interest rates can vary. Look for hidden costs such as annual fees, non-utilisation charges, or transaction costs. If your business has strong cash flow, using the overdraft as a back-up rather than a daily tool will keep costs lower.

Finally, align overdraft use with predictable inflows such as invoices or seasonal revenue so you can repay quickly and avoid extended interest charges.

Understanding business overdraft options

Overdrafts can vary by structure, cost, and security. Comparing these options ensures you choose the right facility for your needs.

Secured vs Unsecured

Most overdrafts are unsecured, but some lenders may request collateral for higher limits or lower rates.

Personal Guarantee

Many lenders require a personal guarantee from the business owner or directors to reduce risk.

Interest Charges

Interest is applied only to the overdrawn balance. However, rates are often higher than term loans.

Facility Fees

Annual or monthly fees may apply, plus transaction or non-utilisation charges depending on the bank.

Repayment Flexibility

As income flows into your account, it automatically reduces the overdraft balance without extra effort.

Limit Reviews

Banks may review your overdraft annually and adjust the limit based on turnover and repayment history.

Testimonials

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I was completely impressed with their professionalism and customer service.. highly recommend. Special Mention to Ray thank you for assisting me in this journey

David A.

Review posted on 2023-11-08

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I was so lucky to have had Evette as my broker through emu money, from the very first phone call Evette was amazing, so prompt and professional keeping me updated on the whole process of the application for finance for my new car, I highly recommend Evette!!!

Kaila B.

Review posted on 2024-03-19

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Eujine made the process of getting a loan swift and easy, he's very trustable, I would highly recommend

Amila L.

Review posted on 2024-03-12

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Highly recommend, process was simple and quick! very nice fella Jackson 🤝🏼

Shayshay K.

Review posted on 2025-06-25

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Really happy that it only took few days and no muck around. Ryan was friendly and able to help me pay off a loan and get a new car. Best part was taking away all the stress. Keeping me informed along the way with texts worked with me perfectly! Thanks.

Sheree F.

Review posted on 2023-11-15

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What a great bloke to deal with... Thank you Brad for all your help and making our dream a reality. We will be contacting you again shortly.

John Z.

Review posted on 2025-09-03

Frequently Asked Questions

Business Overdraft FAQs

These helpful FAQs will help you find the answers you need. If you can't find what you're looking for, you can request a callback below.

What's the difference between a business loan and a business overdraft?
Can startups apply for a business overdraft?
Do I need a business bank account to get an overdraft?
What happens if I don’t use my overdraft?
How much can I access?