How business finance works in Australia: what lenders assess, what it costs, and which structure suits which situation.
Commercial equipment financing lets a business acquire machinery, vehicles or plant without paying the full cost upfront. A lender funds the purchase and the business repays over an agreed term, usually one to seven years, with the equipment itself acting as security.
8 min read4 questions answered Equipment financeA business equipment loan is finance used to buy a specific business asset, secured against that asset. Terms typically run one to seven years, funding is available from small purchases up to several million dollars, and because the loan is secured, rates are generally lower and approval easier than for an unsecured business loan of the same amount.
7 min read4 questions answered Equipment financeUnder a chattel mortgage you own the equipment from settlement and the lender holds a registered security interest until the loan is repaid. Under an equipment lease the lender owns the asset and you pay for its use, with a residual to buy it at the end.
7 min read4 questions answeredA low doc business loan is finance approved without full financial statements or tax returns. Instead, lenders assess bank statements, BAS lodgements or an accountant declaration.
7 min read4 questions answered Low doc & credit historyBusiness finance is still available with adverse credit history, but the range of lenders narrows and pricing rises. Secured options such as equipment finance and property-backed loans are the most accessible, because the security reduces the lender reliance on credit history.
7 min read4 questions answered Low doc & credit historyMost Australian lenders require an active ABN, a minimum trading period of six to twelve months, evidence of turnover through bank statements or BAS, identification for each director, and a satisfactory director credit file. Larger or unsecured facilities add financial statements and, in some cases, security or a personal guarantee.
7 min read4 questions answeredA business line of credit is a revolving facility with an approved limit that you draw from as needed and repay at will, paying interest only on the balance drawn. It suits recurring or unpredictable working capital needs, stock, wages, timing gaps between invoicing and payment, where a fixed term loan would be the wrong shape.
7 min read4 questions answered Working capitalWorking capital finance covers the funding used to meet day-to-day operating costs such as stock, wages, suppliers and tax, while payment is still owed to you. The main options in Australia are lines of credit, invoice finance, short-term business loans, trade finance and overdrafts.
7 min read4 questions answeredBusiness loan interest rates in Australia are set by the security offered, the product type, the loan size and term, the trading history and turnover of the business, and the credit files of its directors. Secured lending is priced well below unsecured.
7 min read4 questions answered Rates & comparisonCompare business loans on total cost of finance over the full term, not the advertised rate. Then compare the security required, the repayment flexibility, early exit costs, and any conditions or covenants in the contract.
7 min read4 questions answered Rates & comparisonAn unsecured small business loan is funding provided without a specific asset pledged as security. Lenders assess turnover, bank statements and director credit history instead.
7 min read4 questions answered Rates & comparisonA secured business loan is backed by a specific asset such as property or equipment, which lowers the rate and raises the amount available. An unsecured loan has no specific asset pledged, so it is faster to arrange and keeps assets free, but costs more and is usually smaller and shorter.
7 min read4 questions answeredA quote is free, carries no obligation, and will not affect your credit file.