Secured, unsecured and everything between
Business Loans Australia: compared by a business loan broker
Need funding, but not sure which business loan actually fits?
Term loan, line of credit, secured or unsecured: the right one depends on what you need the money to do.
What does a business loan broker do for you?
A business loan broker is a finance broker who compares business loans across a panel of lenders. 121 Brokers is one, arranging business-purpose finance only. Tell us once; we match your file to lenders whose appetite fits and put the options side by side: rate, fees, term, security and structure. We are a finance broker, not a lender: the lender assesses, prices and decides. We are typically paid a commission by the lender when your finance settles. Weighing up your bank instead? Read bank vs broker for a business loan.
The basics
How do business loans work in Australia?
A business loan is finance for a business purpose: you receive funds or a credit limit, then repay over an agreed term with interest and fees. Lenders assess your trading history, cash flow, credit profile and any security offered, and business loan interest rates in Australia vary widely between banks, non-bank lenders and specialists.
The first fork is structure. A term loan gives you a lump sum repaid over a fixed period, right for a one-off purchase. A revolving facility like a line of credit gives you a limit you draw on as needed, paying interest only on what you use, right for cash flow that moves around. Most of the products below are a variation on one of those two shapes.
Which type of business loan do you need?
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Unsecured business loans
No asset security: approval rides on your cash flow and credit profile.
Best for: Access to working capital when you don't want to (or can't) pledge an asset. Personal guarantees are standard.
Learn more -
Secured business loans
Backed by property or another asset, which generally buys you lower rates, larger amounts and longer terms.
Best for: Bigger borrowing where you have equity to put to work.
Learn more -
Bad credit business loans
A blemish on your credit file narrows the field. It rarely closes it.
Learn more -
Invoice finance
Advances most of the value of your unpaid invoices now, instead of waiting 30 to 90 days.
Best for: B2B businesses whose cash is stuck in their debtor ledger.
Learn more -
Equipment finance
The asset you're buying typically secures the loan: machinery, kitchen kit, medical gear, IT.
Best for: Acquiring equipment without draining working capital.
Learn more -
Trade finance
The financier pays your suppliers upfront; you repay once stock arrives and sells.
Best for: Importers and wholesalers bridging the pay-supplier-now, sell-stock-later gap.
Learn more -
Line of credit
A revolving limit you draw and repay as needed, with interest only on drawn funds.
Best for: Seasonal or lumpy cash flow.
Learn more -
Vehicle finance
Business car, ute and truck finance: commonly via chattel mortgage.
Best for: Vehicles used in the business, with the GST and tax treatment handled properly.
Learn more -
Merchant cash advance
An advance repaid as a percentage of your daily card takings.
Best for: Retail and hospitality businesses with strong card sales and no hard assets.
Learn more -
Business debt consolidation
Rolls multiple business debts into one facility with a single repayment.
Best for: Businesses juggling several high-cost facilities that want simpler, potentially cheaper repayments.
Learn more
Not sure whether you need a lump sum or a limit? Start with term loan vs line of credit. If the question is what to pledge, read secured vs unsecured business loans. Every head-to-head we publish is on our business finance comparisons page. Buying an existing business or a franchise rather than growing one? Start with finance to buy a business.
What does a business loan cost?
Honest answer: it depends, and anyone quoting one number without seeing your file is guessing. Rates move, they differ enormously between a secured facility for a strong-credit borrower and risk-priced unsecured lending, and the lender sets them, not us. What actually decides your number is below: security, trading history, credit profile, industry and how the lender prices its risk. We would rather show you real pricing from our panel for your file than an average that fits nobody.
What actually drives your price:
Security
Asset-backed loans price lower than unsecured.
Trading history
Two clean years reads very differently from eight months.
Credit profile
The business's and the directors'.
Term and amount
And the lender's appetite for your industry.
Also budget for fees: establishment, account-keeping, and early-repayment terms vary by lender: we put the full cost picture side by side before you choose. Try the repayment calculator for ballpark figures (estimates only: not an offer, quote or advice).
Am I eligible for a business loan?
Most lenders want to see:
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An active ABN: and business-purpose use of funds (we arrange business finance only)
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Trading history: typically 6+ months; more for larger amounts
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Turnover: minimums vary by lender and product
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Photo ID: for directors/owners
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Business bank statements: usually the last 6 to 12 months; financials for larger amounts
Near miss on one of these? That's where a broker earns their keep: specialist lenders on our panel assess start-ups, seasonal trade and credit-impaired files that mainstream lenders template out. No promises: but usually more paths than the bank showed you.
Related guide: how much your business can borrow.
Can I get a business loan with no trading history?
A business loan with no trading history is rarely available unsecured, and sometimes available with security. Most unsecured lending is assessed on trading history a new business does not have, so the realistic route is usually asset-backed finance (equipment finance or a secured loan), where the lender relies on the asset as well as your trading. Whether a lender funds a new business is its decision on your file, and we arrange business-purpose finance only. For what is realistically available from day one and what opens up with trading, read business loans for startups before you have trading history.
How to apply: what happens after you enquire
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Enquire
Tell us the amount, purpose and a little about the business. We won't submit anything to a lender without your say-so.
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Compare
We come back with the options that fit, including rates, fees and trade-offs in plain English.
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Apply
You pick; we package and submit. The lender assesses the file against its own credit criteria and makes the decision; we relay the outcome and any conditions to you.
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Settle
Funding timing depends on lender and facility; we tell you what to expect before you commit.
Industries
Industries we help fund
Whatever you do, the finance that fits depends on how your business actually trades. These are some of the industries we arrange funding for, each with its own guide.
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Agriculture & farming
Machinery, utes, inputs bought a season ahead, and repayments that can follow the harvest.
Agriculture finance -
Hospitality & cafés
Fit-outs, commercial kitchen gear, stock before the rush, and the quiet months in between.
Hospitality finance -
Retail & e-commerce
Buying stock before the season sells, fit-outs, and bridging supplier terms against your sales.
Retail finance -
Trades & construction
Tools, vehicles, materials up front, and bridging the gap between doing the work and being paid.
Trades & construction finance -
Health & allied health
Practice fit-outs, clinical equipment, hiring, and opening a second set of rooms.
Health finance -
Professional services
Hiring ahead of billings, office and technology, and bridging project-based invoicing.
Professional services finance -
Transport & logistics
Trucks and trailers, running costs, and carrying the gap between delivery and payment.
Transport & logistics finance
Customer stories
What business owners say about 121 Brokers
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5 out of 5
Cash flow in retail is lumpy, so a line of credit made far more sense for me than a lump-sum loan. I draw down when stock orders are due and pay it back after the season sells through. Having that buffer sitting there has taken so much stress out of running the shop. Only wish I'd set it up years ago.
Priya S. Retail store owner, Sydney NSW -
5 out of 5
My biggest client pays on 60-day terms and it was slowly strangling my payroll. Invoice factoring let me get most of the money up front instead of waiting two months. Now I can pay my contractors on time and take on bigger projects without sweating the gap. It changed how I run the business.
Sophie L. Marketing agency founder, Melbourne VIC -
4 out of 5
A merchant cash advance worked well for me because repayments flex with my daily card takings. Quiet week, I pay less; busy week, I pay more. It suited the ups and downs of a restaurant far better than a fixed loan. Would have given five stars if the initial paperwork had been slightly quicker, but no real complaints.
Ahmed R. Restaurant owner, Perth WA
Testimonials reflect individual customers' experiences. Outcomes vary and depend on the lender and your circumstances.
121 Brokers Pty Ltd (ABN 37 674 323 712) is a finance broker, not a lender. We arrange finance through third-party lenders. Approval, interest rates, fees, timing and the funds themselves are set and provided by the lender, not by 121 Brokers.
FAQs
Business loan questions, answered straight
What do I need to apply for a business loan in Australia?
Typically an active ABN, 6+ months of trading, photo ID and your recent business bank statements. Larger amounts usually need financial statements too. We tell you exactly what your shortlisted lenders want and package the application so it's right the first time.
What's the minimum credit score for a business loan?
There's no universal minimum. Lenders set their own criteria and weigh cash flow, trading history and security alongside the score; how much weight the score carries differs by lender. A middling score with strong recent revenue can still be fundable, often via specialist lenders.
Are business loan repayments tax deductible?
Interest and most loan fees are generally deductible when borrowing is for business purposes; principal repayments are not. Structure affects the details, so confirm with your accountant: this is general information, not tax advice.
Can a new business get a loan?
Under about six months' trading, unsecured lending is hard. Asset-backed options: equipment finance or a secured loan: are usually the realistic route, since security reduces the lender's reliance on trading history.
Term loan vs line of credit: what's the difference?
A term loan is a lump sum repaid over a fixed term: suited to one-off purchases. A line of credit is a revolving limit you draw as needed, paying interest only on drawn funds: suited to variable cash flow.
Do I need a deposit or security?
Depends on the product. Unsecured loans need no asset security, though director guarantees are standard. Secured loans use property or other assets and generally price lower. Equipment and vehicle finance typically use the purchased asset itself as security.
Stop guessing which loan fits.
Tell us what you're trying to fund: we'll show you the realistic options across our lender panel, trade-offs included.