Small business loans in Australia, sized to fit

“Small business loan” is the umbrella term. Under it sits everything from a quick unsecured top-up for a café to a seven-figure loan against a warehouse. The trick isn’t finding a loan. It’s finding one your business can carry without strangling the rest of the month.

So we flip the usual question. Instead of asking “how much can I get?”, ask “how much can my turnover repay?” Then work backwards.

What is a small business loan, really?

A small business loan is money borrowed by a business, for a business reason, repaid over a set term. It usually comes in one of three shapes:

• A term loan: a lump sum paid out once, then repaid in regular instalments.
• A line of credit: a limit you draw on and repay as needed, paying for what you use.
• A property-secured loan: a term loan with a first mortgage, second mortgage or caveat over residential or commercial property.

The official business.gov.au guidance lists business loans, lines of credit, overdrafts, invoice finance and asset finance among the common forms of debt funding. We focus on the business loan end of that list: money for stock, staff, tax, equipment, fit-outs, a new site or a gap between paydays.

Secured or unsecured: which suits a small business?

Here’s how the two main paths compare.

	Unsecured	Property-secured
Typical size	$5,000 to $500,000	$20,000 to $5,000,000
Assessed mainly on	Turnover and bank statements	Property equity plus the business
Typical term	Shorter	Shorter or longer, depending on the lender
Paperwork	Lighter	Valuation and legal documents
Best for	Trading businesses without spare property	Bigger amounts, tricky credit, tax debt

The Reserve Bank noted in its October 2025 bulletin that specialist and non-bank lenders have been growing in small business lending, and that more unsecured credit has become available. Property-backed lending still dominates, though, because security lets lenders say yes to bigger numbers and messier stories.

Not sure which camp you’re in? Our pages on unsecured business loans and secured business loans go deeper.

How much should a small business borrow?

Start with the repayment. If your business banks an average of $80,000 a month and a loan costs you $6,000 a month to repay, that’s 7.5% of turnover. Most owners can feel that, but live with it. Push the loan to $16,000 a month and it’s 20%, which is a different conversation entirely, especially on thin margins.

Repayment reality check (illustrative)

These figures are made up to show the method. Your own quote will differ.

Loan amount	Total cost of finance (from a quote)	Term	Approx. weekly repayment	Share of $80k monthly turnover
$50,000	$9,000	12 months	$1,135	6.1%
$150,000	$36,000	24 months	$1,788	9.7%
$300,000	$90,000	36 months	$2,500	13.5%

Run your own numbers in the 1-2-3 Loan Repayment Planner. It takes the total cost of finance in dollars, so you never need to translate a rate.

Quick one: if the numbers already look comfortable, you’re ready for step 1. Start your 60-second enquiry and one of our experts will call to talk it through. No credit check to enquire.

What do lenders check for a small business loan?

The business.gov.au guide to applying for a business loan says lenders look at your financial position, repayment capacity, security and credit profile. In plain terms, they want to know four things:

1. Can the business repay? Bank statements, turnover, other debts and margins.
2. What’s backing the loan? Property, other assets, or just the business’s cash flow.
3. Is the owner a safe pair of hands? Credit history, tax compliance, time in business.
4. Does the purpose make sense? Money that helps the business earn or save is an easier yes.

For the full list, see business loan requirements and the documents checklist.

What our expert will ask you on the call

Step 2 is a conversation, not an interrogation. Expect questions like these, and have rough answers ready:

• What’s the money for, and what does it change for the business?
• What does a normal month bank? What about a slow one?
• Do you own property? Roughly what’s it worth and what’s owed?
• Any ATO debt, defaults or other loans we should know about?
• When do you need the funds, and is there a hard deadline?

Nobody expects perfect figures. Honest ballparks beat optimistic ones every time.

Mistakes small businesses make with loans

• Borrowing the maximum. The biggest approval isn’t the best outcome. Borrow what the plan needs, plus a sensible buffer.
• Comparing rates instead of dollars. Fees and term change everything. Our guide to the total cost of finance shows how to compare offers properly.
• Shotgun applications. Several applications in a short time can make a credit file look stressed. One well-matched application beats five hopeful ones.
• Mixing personal and business money. It blurs your real turnover, which can mean a slower assessment or a smaller offer.

Your countdown starts here

If your repayment sits comfortably against turnover and you know what the money’s for, you’re most of the way there. The rest is a short form and a good conversation.

Hit step 1 and apply in about 60 seconds. There’s no credit check when you enquire, we won’t fire your details at a crowd of lenders, and a real expert will call you. Please fill in the form as accurately as you can, especially turnover and any property you own, so we can match you to the right small business loan first time.