Loan types
Business loan types compared
Twelve kinds of business finance, each one set against its closest alternatives: what it suits, what it asks of you, how it is repaid and when something else would serve you better.
Independent-minded, plain-English comparisons
Compare business loans side by side, in plain English.
Unsecured or secured, term loan or credit line, equipment or invoice finance. See how every kind of business finance stacks up, then let a real person compare real offers for you.
- No credit check to ask
- Not shared around
- A real person, not a robot
Comparing costs you nothing
Making an enquiry doesn't put a mark on your credit file. A credit check only comes up if you decide to go ahead with an option.
Not shared around
Your details aren't sent off to a long list of lenders. One person compares the options that fit and talks you through them.
A real person, not a robot
Someone who knows business lending reads your enquiry and calls you. The more accurate your answers on the form, the better the first match.
The big table
Eight kinds of business finance, compared
The short version of everything on this site. Scroll sideways on a phone; tap a name for the full comparison.
| Loan type | Typical size | Speed | Security | Paperwork | Repayments | Best for | Watch for |
|---|---|---|---|---|---|---|---|
| Unsecured business loan | $5k to $500k | Often quick | Director guarantee, no property | ID and bank statements | Fixed, often weekly | A one-off cost with a clear, short payback. | Shorter terms mean bigger repayments; check early payout terms. |
| Line of credit | Limit sized on turnover or property | Quick to draw once set up | Guarantee, sometimes property | Bank statements | Flexible on what you draw | Recurring or seasonal gaps you can repay as cash comes back. | Line fees apply on the limit, and a balance that never clears becomes permanent debt. |
| Invoice finance | Grows with your sales ledger | Quick once set up | Your unpaid invoices | Debtor ledger and customer details | As your customers pay | B2B businesses waiting 30 to 90 days for reliable customers to pay. | Check recourse, minimum fees and any lock-in term. |
| Equipment finance | Matched to the asset | Moderate | The asset being bought | Supplier quote, ID, statements | Fixed, optional balloon | Vehicles and machinery that hold their value. | Balloons need a plan, and some financiers limit used or private-sale gear. |
| Property-backed business loan | $20k to $5m | Slower: valuation and legals | Home or commercial property | Property details, more for larger amounts | Usually monthly | Larger amounts, longer terms, or a credit file that needs support. | The property is at risk, and valuation, legal and discharge costs add up. |
| Caveat or short-term secured loan | Depends on equity | Quickest property-backed option | Caveat over property | Property details and a clear exit | Short term, often repaid in one go | An urgent, short-term need with a certain way out, like a sale or refinance. | Expensive if it runs past the planned exit. |
| Commercial property loan | Large | Slowest | Commercial property | Financials, tax returns, lease, contract | Monthly over a long term | Buying premises, refinancing or releasing equity from a building. | Needs a solid contribution, and duty and legal costs on purchases. |
| Low doc business loan | Small to medium | Often quick | Unsecured or property-backed | Bank statements, BAS or accountant's letter | Fixed | Trading well but tax returns are behind. | Usually costs more than full-doc; plan to refinance once lodgements are current. |
General guide only. We never publish rates: every business loan is priced on the borrower's circumstances.
Three ways to compare
Start from the product, your situation or your offers
Compare by need
Compare business loans by what matters to you
Start from your situation instead of a product name. How the main options stack up when speed, security, paperwork, credit history, amount or repayment style is the thing that matters most.
Comparing offers
Comparing business loan offers
Once offers arrive, the headline number rarely tells the whole story. How to line up total cost, fees, repayment frequency, term, early payout and the security you're signing.
Free tools
Not sure which kind of loan fits?
Answer eight quick questions about the purpose, timing, security, paperwork and credit, and the business loan comparison tool ranks the loan types for you, side by side.
Already holding offers? The loan offer comparer turns weekly, monthly and daily repayments into one total cost and one monthly figure.
- 1Tell it what the money is for and how soon you need it
- 2Say whether property is available and where your books are up to
- 3Add your credit history, time trading and repayment preference
- 4See the loan types ranked, with speed, security and paperwork for each
How we compare
Four measures that matter more than any headline
Every comparison on this site, and every option we bring you, comes back to these.
Total cost in dollars
Every repayment, fee and balloon, minus the money you actually receive. The one number that makes different offers comparable.
Monthly equivalent
Weekly, fortnightly and daily repayments converted to a monthly figure, then tested against your quietest month.
What's at stake
Guarantees, security agreements, mortgages and caveats. A cheaper loan that puts the house on the line isn't automatically better.
Room to move
Early payout, extra repayments, redraw and covenants. The terms that decide whether a loan still fits if plans change.
Comparison traps
Four shortcuts that lead to the wrong loan
Compare the interest rates and you're done.
Business loans are priced in different ways, with very different fees and terms. Only total dollar cost puts them on the same footing.
Lower repayment, cheaper loan.
A longer term shrinks each repayment and usually grows the total. Look at both numbers before choosing.
Unsecured means nothing is at risk.
Most unsecured loans carry a personal guarantee, and some add a security agreement over business assets. Read what you sign.
More applications, better odds.
Each formal application can add an enquiry to your credit file. One considered comparison first is the smarter move.
Guides
Read before you compare
How to Compare Business Loans in Australia: A 6-Step Method
A six-step method for comparing business loans in Australia: define the need, shortlist loan types, line up offers in dollars and check the fine print.
Small Business Loans Compared: Options for Australian SMEs
Small business loans in Australia compared for sole traders, partnerships and small companies: unsecured, secured, equipment, invoice and low doc options.
How to Get a Business Loan in Australia: From Idea to Funds
How to get a business loan in Australia, step by step: preparing, choosing a loan type, applying, assessment, the letter of offer and settlement.
Questions people ask before comparing
What does Compare Business Loans Australia do?
We explain every main type of business finance side by side, in plain English, with tools to rank loan types for your situation and compare offers in dollars. When you're ready, a real person helps you find and compare options that fit your business.
Do you compare interest rates?
No. Business loans are priced on each borrower's circumstances, so published rates mislead most people. We compare structures, and then the total dollar cost of real offers made to you.
How much can a business borrow?
Unsecured, cash flow and line-of-credit options for trading businesses typically run from $5,000 to $500,000, sized on turnover and bank statements. Property-backed business loans run from $20,000 to $5,000,000 against residential or commercial property.
Will comparing options affect my credit score?
Reading this site and using the tools doesn't touch your credit file. Making an enquiry with us doesn't either: a credit check only comes up once you decide to go ahead with a specific option.
Do you send my details to lots of lenders?
No. A real person reads your enquiry and compares the options that suit you. Your details aren't sprayed across a list of lenders.
Can you help with bad credit or tax debt?
Often, yes. Past credit issues and ATO debt are considered case by case. Be upfront on the form and we'll tell you honestly which options are realistic.
Is this for personal loans or home loans?
No. Everything here is for business purposes only.
Business purposes only. We never publish interest rates; every loan is priced on the business's situation.
Ready to compare real offers?
Tell us what the money is for. One real person compares the options that fit and talks you through them. No credit check to ask.
Comparing costs you nothing
Not shared around
A real person, not a robot