Business Loan
A business loan is finance a business borrows to cover operating costs, manage cashflow, or fund growth — and it’s usually repaid over a set term with interest and fees. Business loans in Australia can be secured or unsecured, and the right option depends on why you need the money (stock, wages, equipment, tax, expansion) and how predictable your cashflow is. This guide explains what a business loan is, how it works, what it’s used for, and the key terms lenders look at.
How a business loan works (simple)
- You borrow a set amount (or a limit, depending on the product)
- You repay it over a term (weekly/monthly)
- Cost is interest + fees (and sometimes security)
- Approval is based on trading strength + affordability
For the comparison view, see our guide on types of business loans and typical loan terms.
What business loans are used for
- Cashflow gaps (supplier bills, wages, BAS/ATO timing)
- Stock and inventory
- Marketing and growth
- Vehicles/equipment (sometimes via asset finance instead)
- Expansion or fitout
Core Switchboard business loan options
If you’re funding a specific asset (like a vehicle or equipment), it can be cleaner to use asset-backed categories like Equipment Finance or Vehicle Finance instead.
Key terms lenders look at
- Cashflow consistency: stable deposits and manageable outgoings
- Affordability: repayments that fit your margin and seasonality
- Security (if required): what supports the limit and pricing
- Time trading: ABN age and operating history
- Conduct: minimal dishonours, clean ATO/BAS pattern where relevant
Loans settle through a standard Settlement process and can be priced on Fixed Rates or Variable Rates. When comparing offers, check the Comparison Rate for a clearer cost view.
Related Switchboard Resources
For official business funding information, visit business.gov.au.