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Typical overdrafts range from $10,000 to $250,000
Interest applies only on the overdrawn balance
Funds draw automatically when your balance drops
Overdrafts remain active while your account is in good standing
Designed for immediate, not long-term, financing
Cover gaps between expenses and receivables
Tell us about your business and connect your bank account so lenders can review your eligibility.
Our Lender Match technology compares overdraft offers from multiple lenders.
Once approved, the overdraft is linked to your business account, ready for use.
When your account balance drops below zero, the overdraft automatically covers payments up to your limit.
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.
This guide is broken down into the following sections. Click a link if you want to skip ahead.
Overdrafts are best for short-term or unexpected business needs. Common uses include:
Bridge short-term gaps in income and expenses by allowing your account to temporarily go into negative.
Cover emergency repairs, urgent bills, or unplanned costs without delaying operations.
Order stock ahead of peak demand or take advantage of supplier discounts with overdraft support.
Finance temporary projects or working capital needs without committing to a lump-sum loan.
Ensure staff are paid on time, even if invoices are still outstanding.
Pay suppliers promptly to maintain strong relationships and supply continuity.
Smooth out the highs and lows of seasonal income with an always-available buffer.
Act quickly on unexpected opportunities with immediate access to funds.
Keep operations running while waiting on client payments to clear.
Use overdraft funds to meet tax obligations on time and avoid penalties.
James Walker, JW Constructions
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.
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.
Balance over time
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
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
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.
Overdrafts can vary by structure, cost, and security. Comparing these options ensures you choose the right facility for your needs.
Most overdrafts are unsecured, but some lenders may request collateral for higher limits or lower rates.
Many lenders require a personal guarantee from the business owner or directors to reduce risk.
Interest is applied only to the overdrawn balance. However, rates are often higher than term loans.
Annual or monthly fees may apply, plus transaction or non-utilisation charges depending on the bank.
As income flows into your account, it automatically reduces the overdraft balance without extra effort.
Banks may review your overdraft annually and adjust the limit based on turnover and repayment history.
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