Compare Business Loans

Looking for a loan to grow your business – without an interest rate or fees that'll cripple it? Mozo compares over 40 business loans from leading bank and non-bank lenders to help you find a great loan fit for your business needs.

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Business loan comparisons on Mozo - last updated 31 May 2024

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  • Featured Product
    Boost Business Loan

    Whether you’re looking for a quick cash boost for your business or are ready to invest in growth, ScotPac offers a range of unsecured and secured loans from $10,000 up to $500,000. For loan terms of 6 months to 3 years. No application or account keeping fees to pay. Funds available in 24 hours or less once approved. Repayment options available.

    Interest Rate
    Upfront Fee
    Funding speed
    On application
    Details on application
    From 24 hours
    Details
  • Business+ Unsecured Loan

    A simple way to fund your business’s big plans. Borrow up to $50,000 without using your assets as security. A fixed interest rate means your repayments don’t change over the life of the loan. Apply in minutes with the Business app. Enjoy a fast approval process. $495 establishment fee.

    Interest Rate
    Upfront Fee
    Funding speed
    Rates range from 11.95% p.a. to 22.95% p.a.
    $495
    Varies
    Details
  • Unsecured Business Loan

    Business Loans from $5,000 to $5,000,000 with high approval rates. Access to funds on loans up to $500,000 in as little as 3 hours. Cash flow friendly repayments and open minded offers.

    Interest Rate
    Upfront Fee
    Funding speed
    On Application
    3%, starting at $399
    from 3 hours
    Details
  • Unsecured Business Loan

    A straightforward business loan with no hidden Lumi fees or charges. Speedy application and approval process with fast access to funds according to Lumi.

    Interest Rate
    Upfront Fee
    Funding speed
    from 9%
    -
    Within same day
    Details
  • Business+ Unsecured Overdraft

    Manage the cash flow in your business with ease. Access up to $50,000 without using your assets as security. Lending criteria apply. Access your available limit from your linked Business+ Account. Use your Debit Mastercard for added convenience. Interest is charged on your balance owing, not your limit. Easy online application. $495 establishment fee.

    Interest Rate
    Upfront Fee
    Funding speed
    Rates range from 14.95% p.a. to 25.95% p.a.
    $495
    Varies
    Details
  • Prospa Plus Business Loan

    Prospa uses risk-based pricing to determine your interest rate. They look at factors including your industry, years in business, cash flow, creditworthiness and the overall financial health of your business.

    Interest Rate
    Upfront Fee
    Funding speed
    Interest rates vary based on risk.
    3.5%
    from 24 hours
    Details
  • Invoice Finance

    Increase cashflow by unlocking the power of your receivables with Octet’s Invoice Finance solution. Receive up to 85% of your debtor’s ledger with tailored facilities ranging from $100K to $12M.

    Interest Rate
    Upfront Fee
    Funding speed
    0% for the first 60 days, then rates starting from 9% p.a.
    On Application
    Instant on approval
    Details
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While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.

Business Banking Resources

Reviews, news, tips and guides to help find the best business loan for you.

Find the business loan that's right for you

What is a business loan?

A business loan is a type of loan that’s specifically used to help your businesses grow, manage cashflow, make big purchases, or meet everyday running costs. 

Like other loans, business loans can be secured with collateral or unsecured and can have variable or fixed rates. Business loans can also be held over long and short terms, and will  usually come with some upfront or ongoing fees. 

So why do Australian businesses take out business loans? Your business might require more funding than you have in your business bank account to get it started or maintain cashflow, which could make a business loan a viable option.

Choosing the best loan for your business

There are many kinds of business loans, and it’s important to choose the right one for your company’s needs. These can include:

  • If you are in need of emergency funding or a business loan over a shorter period of time (generally between 3 to 24 months), you may need a short term business loan.

  • If you have to finance expensive tools or machinery, you may want to look into equipment finance.

  • If you’re a small business trading with other small businesses, invoice financing may be useful for maintaining cashflow while you wait on the payment of invoices.

  • If you need to draw beyond the money in your account, you may need to consider a business overdraft.

Not sure where to start? Find out how to finance your business, or see the complete list of business loan providers available.

What can a business loan be used for?

In Australia, you can use your business loan for all sorts of purposes, whether it’s to cover short-term cashflow gaps or to support longer-term investments. 

Some of the popular ways business loans are used in Australia include: 

  • Paying staff wages

  • Hiring new employees 

  • Purchasing stock

  • Buying new equipment

  • Paying invoices

  • Boosting day-to-day cashflow 

  • Funding growth opportunities

Since there are so many different reasons why a business might need extra finance, some lenders do offer a range of specialty business loans to meet specific funding needs. 

How to compare business loans

When it comes to choosing the financing you need, working out how to compare business loans can be challenging but is an important step one. 

The way to do this is to figure out which features you will need in your business loan, and exactly what type of loan you will need. You can then find all of the business loan providers available and see how the fees, interest rates and features compare between loans. Mozo can be used to compare business loan providers to help you find the option that best suits your needs.

Need help getting a business loan?

If you’re starting out with business loans and need some help, we can guide you through how to get a business loan

Once you’ve chosen what type of loan you need, you’ll also have to decide on a few key things about the loan. These include the term of the loan, the features you need, and choosing between secured and unsecured loans

Like with other types of loans, securing a business loan with collateral can increase risk for you (as you will be putting assets up against the borrowed money), but it can also mean lower interest rates and smaller repayments. Unsecured business loans may have higher interest rates and stricter eligibility requirements.

Business loan application and eligibility

To apply for a business loan, you will need to submit any required documents either in person or online,  including:

  • Your licence or other points of identification

  • Your business’ ABN  (Australian Business Number)

  • Financial documents such as bank account statements, tax returns and projected cash flow

  • A business plan for how you intend to use the funds

Your eligibility for a business loan will be determined by several factors, including:

  • Time in business: Some business loans may require you to have been in business for a set amount of time, from 6 months up to 2 years.

  • Annual turnover: Certain lenders may have requirements for businesses to bring in a required amount of annual turnover, which is why you will need to provide financial records for your company.

  • Outstanding tax: Business loan providers may look at your tax history similar to a personal credit history, where any tax owing signals a risk to a lender.

  • Loan purpose: Depending on the business loan, they may want to know what the money is being used for, with some loans only accepting applications for specific purposes.

  • Personal and business record: When you apply for a business loan, both the records of your business and yourself will be looked into to ensure that you are a viable borrower. This can include any legal issues or failed business ventures.

Other options for business finance

If a business loan is not the right option for you, but you are in need of other business finance tools, there are other things you can look into. 

Business credit cards and charge cards are an option for maintaining everyday cash flow at your company without taking out a larger business loan. Most business credit cards will allow multiple cardholders, often up to 100 on the same account, which can be useful for small businesses with shared financing. You can also often collect rewards points as a team, rather than individually. You may also consider business charge cards, which attract no interest rate but need to be paid off in full each statement period. 

A line of credit could be useful for businesses who need access to ongoing extra finance but do not have a set amount in mind. With a line of credit, your business will be approved to a certain amount and only pay interest on what you withdraw. A business overdraft is a form of this. There may be fees for drawing down more money. This tends to be an option for businesses with unpredictable cashflow. 

If you need a loan to get started on something that may eventually evolve into a business, but might not yet qualify for a business loan, a personal loan might be a better option. Personal loans do not look at your business history but rather your personal income and creditworthiness.


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JP Pelosi
RG146
Managing editor

Jean-Paul (JP) Pelosi is an experienced journalist and editor who has contributed to many of Australia's leading media outlets including The Guardian, News.com.au, Domain.com.au, Investment Magazine and ANZ's Bluenotes. He has also edited news and communications for large financial services companies such as CommBank, Suncorp, Allianz and Amex. He loves a well told story and applying his editorial experience to content that readers both care about and enjoy. JP heads up our writing team.

Business Loan FAQs

Read on below for the quick fire answers to some of the most commonly asked business loans questions.

What is a business loan?

A business loan is a borrowed sum of money used to help grow your business, support cashflow, or make necessary purchases. Business loans operate in much the same way as personal loans, where you pay back the borrowed money as well as interest in regular repayments.

How much can I borrow with a business loan?

How much you can borrow with a business loan depends on a range of different factors, from your business performance to your credit history. You'll also need to decide how much you want to borrow for your business. Just because you qualify for a $100,000 business loan, you may not need that much or want to pay interest on all of it, and might end up more content with a $20,000 business loan or a $10,000 business loan.

Can I use a business loan to start a business?

Some providers may let borrowers use business loans to start their business, while others may have conditions regarding how long the business has been in operation and the amount of revenue it makes per year. You can visit our business loan providers page to check for yourself, or for more information, read our guide on business loans for startups.

Should I choose a fixed or variable rate business loan?

There are pros and cons to fixed and variable rate business loans, and it’s important to consider what you need for your business.

Variable rate business loans can offer more flexibility such as redraw facilities and the ability to make additional repayments. If interest rates do go up on a variable rate loan, so will your repayments, so it's important to budget for this possibility.

Fixed rate business loans are less likely to offer features like redraw and early repayments (although increasingly these are becoming available), but typically charge at a higher rate than variable business loans. With a fixed rate loan, your repayments will stay the same if interest rates rise, and you can budget knowing what these repayments will be.

If I have bad credit, can I still be approved for a business loan?

A bad credit score could make it hard for you to get a business loan, there are still ways you could be approved.. Bad credit may always leave you at risk of a higher interest rate, as your business may be considered a risky borrower.

It’s always a sensible move to work on improving your credit score by paying off any overhanging debt, but business loans will also look at your business record, which means looking into any commercial debts or tax bills as well.

Should I get a business loan from a bank or non bank lender? 

Business loans from both banks and non bank lenders have pros and cons that could impact your choice.

One of the benefits of getting a business loan from a big bank is that you’ll be able to go into a branch and speak to a manager. There may also be more generous loan terms and loan amounts up for grabs, but you could also end up with higher rates and fees.

On the other hand, non-bank lenders for business loans generally charge lower rates and fees, though these lower rates may be restricted to those with excellent credit history. Non bank lenders may also have lower borrowing limits and shorter loan terms.

Can a business loan affect your personal credit score?

A business loan can actually have a direct impact on your personal finances and, as the person applying for the loan, can relate directly to your credit score. 

When you apply for a business loan, the lender will typically access both your personal and business credit files to check whether or not you’re in the right financial position to service that loan. This process is known as a ‘hard inquiry’ and it will leave a mark on your credit file. While one or two hard enquiries shouldn’t be much of a concern, having an excessive amount recorded within a short span of time could hurt your personal and business credit score. 

To avoid accumulating too many hard enquiries, you may want to limit the number of loan applications you make by comparing business loans first. You should also make sure you are clear on any requirements before submitting applications.

Do I need a guarantor for my business loan? 

Whether or not you have a guarantor on your business loan depends on your financial circumstances. If you don’t have a hefty cash deposit or enough equity in your residential property to put up as security for your business loan, then having a guarantor is another way to help you get approved. Besides making it easier to access extra finance, a guarantor could also bring other benefits like increased borrowing power and better interest rates.

Your lender may request a guarantor in order to reduce risk to themselves and ensure the loan gets repaid. Guarantors have an obligation to pay back the whole debt if the business defaults. 

Guarantors can be first-party or third-party: the former simply means the borrower themselves provide security (i.e. a secured loan), while the latter means that another person or entity is brought into the loan agreement and agrees to put up an asset such as their residential property as security.

What is the best business loan?

The best business loan for you and your business will depend on what your needs are for your loan, which means there is no single answer – but Mozo is a great starting point to compare business loans and start your search.