5.0 rating
From $5,000 up to $1,000,000
Redraw funds as you repay
Draw funds instantly when needed
Save costs by borrowing strategically
Cover cash flow, inventory, payroll, or emergencies
Unlike term loans, funds remain available within your limit
Enter your details to see line of credit options matched to your business. No long forms.
Our Lender Match technology compares multiple lenders to find credit limits and rates that fit your profile.
Once approved, your credit facility is ready to draw from whenever you need funds.
As you make repayments, your available balance resets—keeping funds on standby for future needs.
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.
This guide is broken down into the following sections. Click a link if you want to skip ahead.
Because funds revolve, a business line of credit gives you the flexibility to cover a wide range of business purposes:
Cover payroll, rent, utilities, and supplier invoices. A line of credit provides quick access to funds for ongoing operations.
Buy stock in bulk, prepare for seasonal demand, or secure supplier discounts with a revolving facility that can be redrawn as you repay.
Purchase or repair essential equipment without waiting for cash flow. Repay as business income allows, then redraw if needed.
Bridge income gaps during seasonal downturns or while waiting for invoices to be paid. Lines of credit smooth out cash flow volatility.
Keep a safety net for unexpected costs or urgent repairs. Funds are always available within your limit, giving peace of mind.
Access funds to open new locations, boost marketing, or expand services without committing to a lump-sum loan.
Recruit and onboard staff or run training programs with flexible access to finance that matches your payroll cycle.
Refresh your premises, upgrade facilities, or modernise equipment using a revolving credit facility that you can repay over time.
Run targeted campaigns, boost online visibility, or test new channels with funds you can dip into when needed.
Use a line of credit to consolidate higher-interest debts into one manageable repayment at potentially lower cost.
Sarah Mitchell, Bay Homewares
Industry: Retail
Challenge: Seasonal cash flow pressure from bulk stock purchases ahead of peak periods.
Solution: A $150,000 revolving line of credit that allowed ongoing access to funds.
Sarah owns a homewares store that experiences sharp spikes in demand before Christmas. To prepare, she needed to order inventory months in advance, which placed pressure on her cash flow. By securing a $150,000 business line of credit, Sarah could draw funds when stock orders were due and repay them once sales rolled in. The flexibility to redraw without reapplying meant she could continue managing seasonal peaks confidently year after year.
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.
Balance over time
Eligibility is similar to unsecured loans but often stricter due to the revolving nature of the facility. Lenders assess your financial health, trading history, and repayment capacity closely. Strong turnover and healthy cash flow increase your approval chances.
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
Registered for GST
Complete a quick online application and we’ll compare line of credit options from our 50+ lender panel. Once approved, you can access funds directly and use them whenever required. Many facilities can be established in just days.
Documents you may need:
ABN and GST registration details
Photo ID (passport or driver’s licence)
Recent business bank statements
Evidence of income and expenses
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.
Business lines of credit in Australia can differ significantly by structure, fees, and eligibility. Comparing these features ensures you select the right facility for your business.
Some lenders require property, vehicles, or other assets as collateral to reduce risk, while others offer unsecured lines of credit based on turnover and credit history. Secured facilities may allow higher limits or lower rates.
Even if unsecured, many lenders will request a personal guarantee. This means directors or owners may be personally liable if the business defaults.
Funds become available again as you repay, offering ongoing access without reapplying. This differs from fixed-term loans, where you repay until the balance is cleared.
You only pay interest on what you draw. However, many lenders charge annual or monthly facility fees, transaction charges, or drawdown costs. Always review the full fee schedule.
Most lenders allow flexible repayment schedules. Choosing to repay faster reduces total interest paid, while minimum repayments keep cash flow steady.
Lenders may review your facility annually to reassess turnover, cash flow, and repayment history. Strong performance can increase your limit, while poor performance may reduce it.
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