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Best Business Loans in Australia — May 2026
Written by the OfferWise team · Updated May 2026
Key takeaways
- Business loans can be used for working capital, equipment, expansion or refinancing
- Lenders typically assess your time in business, revenue and credit profile
- If you do not qualify with a major bank, non-bank lenders like Prospa and Lumi may still approve you
Best business loan lenders in Australia
| Lender | Best for | Starting rate | Amount | |
|---|---|---|---|---|
| Prospa | Fast approval | 9.9% p.a. | $5k–$150k | See Results |
| Lumi Finance | Flexible terms | 8.9% p.a. | $5k–$300k | See Results |
| ScotPac | Large loans | 7.99% p.a. | $10k–$500k | See Results |
| Moula | Good credit | 9.95% p.a. | $5k–$250k | See Results |
| OnDeck | Same-day funding | 11.5% p.a. | $5k–$400k | See Results |
| Valiant Finance | Broker network | 8.5% p.a. | $5k–$5M | See Results |
| Capify | Bad credit OK | 15% p.a. | $5k–$300k | See Results |
| Grow Finance | Equipment focus | 7.5% p.a. | $10k–$500k | See Results |
Best business loan companies
Best for: Fast approval — Prospa
Prospa
From 9.9% p.a.
Amount
$5k – $150k
Time in business
3+ months
Term
3 – 36 months
Min. credit score
500+
Best for: Flexible terms — Lumi Finance
Lumi Finance
From 8.9% p.a.
Amount
$5k – $300k
Time in business
12+ months
Term
6 – 36 months
Min. credit score
550+
Best for: Large loans — ScotPac
ScotPac
From 7.99% p.a.
Amount
$10k – $500k
Time in business
12+ months
Term
12 – 60 months
Min. credit score
580+
Best for: Good credit borrowers — Moula
Moula
From 9.95% p.a.
Amount
$5k – $250k
Time in business
12+ months
Term
6 – 24 months
Min. credit score
600+
Best for: Same-day funding — OnDeck
OnDeck
From 11.5% p.a.
Amount
$5k – $400k
Time in business
6+ months
Term
3 – 24 months
Min. credit score
500+
Average business loan rates in Australia
Business loan rates in Australia typically range from 7.5% to 20% p.a. depending on the lender, your credit profile, trading history, and the type of loan. Non-bank lenders charge more than major banks but offer faster approvals and less restrictive criteria.
Secured loans
7.5% – 12% p.a.
Unsecured loans
9.9% – 20% p.a.
Line of credit
8% – 18% p.a.
How to compare business loans
Not all business loans are created equal. Before applying, compare lenders on these key factors to find the best fit for your business.
- Interest rate: Compare the annual percentage rate (APR) or factor rate across lenders. Even a 1% difference can add thousands to your total repayment.
- Repayment term: Shorter terms mean higher repayments but less total interest paid. Longer terms reduce cashflow pressure but cost more overall.
- Time to fund: If you need money urgently, prioritise lenders offering same-day or next-day funding. Traditional banks can take weeks.
- Additional fees: Watch for origination fees, monthly account fees, and early repayment penalties. These can significantly increase the true cost of your loan.
Types of business loans
Term loans
A lump sum repaid over a fixed period with regular scheduled instalments
Line of credit
Draw funds as needed up to your approved limit, paying interest only on what you use
Equipment finance
Secured lending specifically for purchasing business equipment or vehicles
Invoice finance
Unlock cash tied up in unpaid invoices, typically up to 85% of their face value
Merchant cash advance
Repay through a percentage of daily card sales — ideal for retail and hospitality
Business loan requirements
- 6+ months of trading history (some lenders accept 3 months)
- $5,000+ monthly revenue
- Active Australian Business Number (ABN)
- Australian resident or citizen
- Some lenders require property ownership for loans above $150,000