Small Business Loans: Compare 50+ Australian Lenders

Small business loans come in several structures, and the right one depends on what you're funding and how quickly you need the money. Unsecured and secured term loans suit one-off costs, while a line of credit suits ongoing or unpredictable cash flow needs.

Equipment and invoice finance are more specific tools, tied to a particular asset or your outstanding customer invoices rather than the business as a whole.

Getting approved comes down to matching your business to the right lender type. Banks, non-banks and online lenders assess risk very differently, and trading history is usually the first filter.

Banks generally want at least 2 years of trading history and take 2 to 6 weeks to approve a loan, reflecting more thorough financial checks. Non-bank lenders are more flexible, often accepting 6 to 12 months of trading and approving within 3 to 10 days. Online lenders can go further still, assessing businesses trading for as little as 3 months, with most requiring $5,000 to $10,000 in minimum monthly revenue.

Loans above $100,000 from banks almost always require property as security, which is one reason established businesses seeking larger amounts still compare non-bank options for speed and flexibility. For a full walkthrough of the process and what documents to prepare, see our guide on how to get a small business loan in Australia.

Startups and newer businesses face a different lending landscape to established operators, since most lenders lean heavily on trading history to assess risk. Without 2 years of financials, options narrow but don't disappear.

Online lenders are typically the most accessible starting point, with some willing to assess businesses trading for as little as 3 months, provided monthly revenue clears the $5,000 to $10,000 range most require. Startups often need to lean on a personal credit history, a personal guarantee, or security such as equipment or property to offset the lack of trading track record.

Our guide to startup business loans in Australia covers eligibility, what lenders look for in a newer business, and alternatives worth considering before you borrow.

Grants and loans solve different problems, and it's worth checking what's available before committing to debt. Government grants can cover specific costs like export development, digital adoption or energy efficiency upgrades, and unlike a loan, the funds don't need to be repaid.

Grants are usually narrower than they first appear. Most are tied to a specific purpose, require you to spend first and claim reimbursement, come with competitive application processes, and rarely cover general working capital or day-to-day cash flow, which is where a loan still does the heavy lifting.

See our guide to small business grants in Australia for current programs, eligibility and how grants and loans can work together.

Small business lending is risk-based, and lenders weigh several factors together rather than relying on any single number. Understanding what's being assessed helps you present your business in the strongest light.

Turnover and trading history are usually the starting point. Most lenders require $5,000 to $10,000 in minimum monthly revenue, and bank approval rates for loans under $1 million sit at 25% to 35%, reflecting how much weight is placed on financial stability. Credit history, existing business debts, industry risk and whether you can offer security all feed into the final decision and the rate you're offered.

Because each lender weighs these factors differently, comparing across a panel rather than applying to a single bank is usually worth more than trying to guess which factor matters most.

The biggest structural decision in a small business loan application is whether to secure the loan against an asset. Both options are available through Emu Money's lender panel.

A secured business loan uses property, vehicles or other assets as collateral. Because the lender's risk is lower, secured loans tend to price more sharply and can offer higher borrowing limits, which is why loans above $100,000 from banks almost always require property security. Settlement takes slightly longer because the asset needs to be valued.

An unsecured business loan requires no collateral. Approval rests on turnover, trading history and credit conduct, and settlement is typically faster, sometimes within a few business days through an online lender. This suits smaller amounts or businesses that don't want an asset tied to the loan.

A few smart choices can make your small business loan more affordable. Secured loans usually come with lower rates, while unsecured loans offer flexibility if you don't want an asset tied to the loan.

Always compare the comparison rate, not just the headline rate, since it bundles most fees and interest into one figure. Watch for setup and ongoing costs too: establishment fees, account-keeping fees and early payout fees vary widely between banks, non-banks and online lenders.

Choose the shortest term you can comfortably afford, since shorter terms mean higher repayments but substantially less total interest over the life of the loan. If your business is buying equipment or eligible assets, check whether the instant asset write-off applies. Businesses with turnover under $10 million can write off the full cost of an eligible asset up to $20,000 in the year of purchase, rather than depreciating it over several years. And once your turnover exceeds $75,000, GST registration is mandatory, which affects how you claim GST credits on financed purchases.