Loan types reviewed
Business Loan Types, Reviewed
Every common type of Australian business finance, reviewed on how it works, what it really costs you to run, who it suits and where it can go wrong.
There are more ways to borrow for a business than most owners realise, and the names lenders use do not always make the differences obvious. A line of credit and an overdraft solve similar problems in different ways. A caveat loan and a second mortgage both lean on property but sit very differently on the title. Invoice finance can look cheap or expensive depending on how quickly your customers pay.
Each review below follows the same structure so you can compare like with like: how the product works, what drives its cost, the honest pros and cons, who it suits, who should look elsewhere and the questions worth asking before you sign. We never rate or rank individual lenders, and we never publish interest rates, because the price of business credit depends on the business asking for it.
Not sure where to start? Read the guide to secured versus unsecured finance, or use the offer comparison calculator once you have quotes in hand.
Cash-flow and working capital finance
Money for the day-to-day: stock, wages, supplier bills and the gap before customers pay.
Unsecured business loans reviewed
Unsecured business loans reviewed in plain English: how they work, what drives the cost, the real pros and cons, who they suit and what to check first.
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Business line of credit reviewed
A business line of credit reviewed: how drawing and repaying works, what you pay for, honest pros and cons, and when it beats a term loan or overdraft.
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Business overdraft reviewed
Business overdrafts reviewed: how an overdraft on your transaction account works, the fees people miss, pros and cons, and when another facility suits better.
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Working capital loans reviewed
Working capital loans reviewed: what they cover, how lenders size them, honest pros and cons, and how to tell a timing gap from a deeper cash problem.
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Short-term business loans reviewed
Short-term business loans reviewed: how terms of a few weeks to a couple of years work, how they are priced, the real trade-offs and what to check first.
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Invoice finance reviewed
Invoice finance reviewed: factoring and invoice discounting explained, how advances and fees work, honest pros and cons, and who it really suits.
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Merchant cash advance reviewed
Merchant cash advances reviewed: how card-sales based repayments work, how the cost is set, honest pros and cons, and the questions to ask before you sign.
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Trade finance reviewed
Trade finance reviewed for Australian importers and exporters: how it funds supplier payments and shipments, typical structures, costs, pros and cons.
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Business credit cards reviewed
Business credit cards reviewed as a form of finance: interest-free days, limits, fees, director liability, honest pros and cons and when a loan is better.
Read the review →Property-secured finance
Larger or faster amounts backed by residential or commercial property.
Secured business loans reviewed
Secured business loans reviewed: how property and asset security works, typical amounts, the honest pros and cons, and what to check before you sign.
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Caveat loans reviewed
Caveat loans reviewed: how a caveat secures short-term business finance against property, why they are fast, what they cost, the risks and the exit you need.
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Second mortgage business loans reviewed
Second mortgage business loans reviewed: how a mortgage behind your home loan works, when it beats refinancing, the costs, the risks and what to check.
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Business bridging loans reviewed
Business bridging loans reviewed: how short-term property-backed finance bridges a purchase, sale or refinance, what it costs, the risks and the exit you need.
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Commercial property loans reviewed
Commercial property loans reviewed: buying or refinancing business premises, how lenders assess the property and the business, costs, pros and cons.
Read the review →Equipment, vehicles and assets
Finance where the asset you buy usually helps secure the loan.
Equipment finance reviewed
Equipment finance reviewed: chattel mortgages, leases and hire purchase compared, how the asset secures the loan, costs, balloons, pros and cons.
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Chattel mortgage reviewed
Our chattel mortgage review: title in your name at settlement, PPSR security, GST and tax questions for your accountant, balloons, trade-offs and best fits.
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Equipment leasing reviewed
Equipment leasing reviewed: finance leases and operating leases compared, residual values, end-of-term options, costs and when leasing beats buying.
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Business car loans reviewed
Business car loans reviewed: financing cars, utes and vans through an ABN, loan versus lease, balloons, business-use rules and what to check before signing.
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Truck finance reviewed
Truck finance reviewed: funding light trucks, tippers, prime movers and trailers, how lenders assess transport businesses, balloons, risks and what to check.
Read the review →Situations and special cases
Starting out, buying in, low documentation, credit problems, tax debt and more.
Startup business loans reviewed
Startup business loans reviewed: what finance a new business can realistically get, how lenders judge a business with no history, and smarter alternatives.
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Low doc business loans reviewed
Low doc business loans reviewed: what low documentation means, what lenders accept instead of financials, who they suit, the costs and the risks.
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Bad credit business loans reviewed
Bad credit business loans reviewed: how lenders weigh defaults and past problems, which options stay open, what it costs and how to avoid making things worse.
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ATO tax debt loans reviewed
ATO tax debt loans reviewed: when borrowing to clear BAS, GST or PAYG debt makes sense, how it compares with an ATO payment plan, costs and risks.
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Business debt consolidation reviewed
Business debt consolidation reviewed: combining several business loans into one, when it lowers cost and pressure, when it does not, and what to check.
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Business acquisition loans reviewed
Business acquisition loans reviewed: how lenders finance buying an existing business, what they assess, deposits and security, due diligence and risks.
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Franchise finance reviewed
Franchise finance reviewed: how lenders fund new and resale franchises, what the franchisor's system changes, typical costs, risks and documents to check.
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Government business grants and schemes explained
Government grants and schemes for Australian businesses explained: how to find them, what they rarely fund, how they differ from loans and how to apply well.
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Non-bank business loans reviewed
Non-bank and private business lenders reviewed: how they differ from banks, why they can be faster or more flexible, the costs, the risks and what to check.
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Sole trader business loans reviewed
Sole trader business loans reviewed: how lenders assess self-employed ABN holders, personal liability, documents, options that fit and how to improve your odds.
Read the review →Questions people ask
What is the most common type of business loan?
For small businesses without property to offer, unsecured term loans and lines of credit sized on turnover and bank statements are among the most common. Businesses that own property often use property-secured loans for larger amounts. The right type depends on what the money is for and how quickly it will be repaid.
Do you rank or rate lenders?
No. We review loan types and features rather than individual lenders, and we never publish interest rates, because the cost of business credit depends on the business asking for it. Our calculators let you compare real quotes you receive.
Can I borrow for my business without property?
Yes. Unsecured and cash-flow lending for trading businesses typically ranges from $5,000 to $500,000 and is assessed mainly on turnover, time trading and bank statement conduct. Larger amounts usually need security such as property or the asset being bought.
How do I choose between loan types?
Match the loan to the job. Short gaps suit revolving facilities, assets suit equipment finance, slow-paying invoices suit invoice finance, and large or urgent needs often suit property-secured loans. Then compare the total cost of each real offer with our offer comparison calculator.
We are an information site, so we do not rank lenders, publish interest rates or accept payment to feature a product. Every page is written and checked by our editorial team against official sources. Read our editorial policy and how we are funded.
Your next step
Find out what might fit your business
Tell us the amount, what it is for and a little about your trading history. There is no credit check when you first enquire, one lending partner looks at it properly, and a person calls you back rather than a stream of sales calls.
- No credit check to enquire. Asking a question about your options leaves no mark on your credit file. A credit check only happens later, if you decide to apply.
- One enquiry, not a lead auction. Your details are not sprayed across a list of lenders. One lending partner looks at your situation properly.
- A real person reads it. A person who works with business finance every day reviews your enquiry and calls you. Accurate answers help them get it right first time.