Business finance · Last reviewed 2026-07-27

Business loans

A business loan funds working capital, growth, equipment or an acquisition. Lenders price it on your cash flow, trading history and security rather than a public rate board, so the right lender depends on your numbers, not a headline rate. Ratesniffers helps you compare the options and get matched, for free.

Cash flowassessed, not a rate board

Secured or notasset-backed or fast

$0to compare, no paid placement

Types of business finance

Business finance is a toolkit, not one product. The main types are:

Term loan — a lump sum repaid over a set term, for a defined purpose like a fit-out or expansion.
Line of credit or overdraft — a flexible limit you draw on and repay as cash flow moves, paying interest only on what you use.
Equipment and vehicle finance — the asset itself secures the loan, so rates are sharper. See how secured lending works.
Invoice or debtor finance — unlock the cash tied up in unpaid invoices instead of waiting on payment terms.
Business acquisition finance — fund the purchase of an existing business, including goodwill, not just its hard assets.
Commercial property — if you are buying premises rather than funding operations, that is commercial property finance.

Secured vs unsecured business loans

The single biggest lever on a business loan is security. A secured loan is backed by an asset, usually property, so it is generally larger, longer and cheaper, but slower to settle. An unsecured loan needs no asset, so it is fast and simple, but usually smaller, shorter and priced higher to cover the lender's risk. The right choice comes down to how much you need, how quickly, and what security you can offer.

How lenders assess a business loan

Unlike a home loan, a business loan is judged on the business, not a standard servicing template. Lenders weigh:

Cash flow and serviceability — can the business comfortably cover the repayments from trading income.
Trading history — many lenders want six to twelve months, though some fund earlier or on low-doc terms.
Financials — tax returns, financial statements and BAS for full-doc, or bank statements and BAS for low-doc.
Security and guarantees — property or business assets, and often a director's guarantee, especially for newer businesses.

How Ratesniffers helps

Ratesniffers is best known as a free, independent home loan rate desk, and home loans remain our focus. Business lending is priced deal by deal, so there is no live table to sort here; instead, tell us about the business and what the funding is for, and we compare lenders and structure the facility around your cash flow. It is free to ask, there is no paid placement, and you only speak to a broker if you choose to. Related: commercial property finance and borrowing power.

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Business loans, FAQs

What is a business loan?

A business loan is finance a business uses for working capital, growth, equipment or buying another business. Instead of pricing off a public rate board, lenders assess the business's cash flow, trading history, financials and any security, so two businesses can be offered very different terms. The right lender depends on your numbers rather than a headline rate.

What is the difference between a secured and unsecured business loan?

A secured business loan is backed by an asset, usually property, which generally means a lower rate, a larger loan and a longer term, but slower settlement. An unsecured business loan needs no asset, so it is faster and simpler to arrange, but is usually smaller, shorter and priced higher. Which suits you depends on how much you need, how fast, and what security is available.

How much can my business borrow?

It depends on your turnover, profitability, trading history and the security offered. Unsecured facilities are often sized against monthly turnover, while secured loans are sized against the value of the security and the business's ability to service the debt. A broker can size it against real lender criteria for your situation.

Do I need financials, and how long must I have been trading?

Full-doc business loans use tax returns, financial statements and BAS. Many lenders want six to twelve months of trading history, though some fund earlier or use low-doc assessment based on bank statements and BAS. Newer businesses and those with incomplete financials still have options, usually at a higher rate or with security.

Can a new business or startup get a loan?

Yes, though the options narrow. Startups often use secured lending, a director's guarantee, equipment finance tied to the asset, or facilities sized against early revenue. The stronger the security and the clearer the cash flow story, the more lenders will consider it.

What can a business loan be used for?

Working capital and cash-flow gaps, buying equipment or vehicles, funding stock or a large order, fitting out premises, marketing or hiring for growth, consolidating business debts, and buying an existing business including goodwill. The structure is matched to the purpose, so a short-term cash-flow need is funded differently from a long-term asset purchase.

Credit assistance is provided by Xcel Pty Ltd, Credit Representative #568072. Business lending for business purposes is generally not regulated under the National Consumer Credit Protection Act. This information is general only and does not take your objectives, financial situation or needs into account.