Quick answer
Business finance is any money a business raises to run, grow or protect itself. In Australia it splits into debt (bank, non-bank and private loans, invoice and equipment finance, lines of credit) and equity (investors, partners, crowdfunding), plus grants. The right choice depends on what the money buys, how long it takes to pay itself back, what security you hold and how fast you need it.
Key points
- Debt keeps ownership with you but must be repaid; equity costs a share of the business instead
- Match the length of the finance to how long the purchase takes to earn its money back
- Banks are usually the cheapest source when you fit their criteria; non-bank and private lenders cover the gaps
- Security (property, equipment, invoices or none) shapes the price, speed and size of almost every offer
- Compare offers on the total dollars repaid, never on the headline repayment alone
- Main families
- Debt, equity and grants
- Lender types
- Banks, non-banks, fintechs, private lenders
- Enquiry range
- $5k to $5m
- Purpose
- Business purposes only
Most owners don’t go looking for “business finance”. They go looking for a way to pay for a delivery van, cover a quarterly tax bill, buy out a retiring partner or keep wages flowing while a big customer takes 60 days to pay. Each of those is a different problem, and Australia has a different finance product shaped for each one. This page is the map. It sorts the options into families, explains who lends them, and gives you a short way to narrow the field before you speak to anyone.
What counts as business finance?
Anything that puts money into a business that the owners didn’t earn from trading. The federal government’s business.gov.au guidance splits it into two broad camps, and that split is still the most useful starting point:
- Debt finance. You borrow and repay, usually with interest and fees. You keep full ownership. Most lending in this directory sits here.
- Equity finance. You sell part of the business to an investor in return for cash. There are no repayments, but you share profits and often decisions from then on.
Grants sit to one side. They’re valuable when you qualify, but they’re usually tied to a specific program, paid in arrears or matched dollar for dollar, so they rarely solve a timing problem. Our comparison of debt versus equity funding goes deeper into the trade-off.
The debt toolkit, sorted by what it’s secured against
Security is the single biggest driver of price, speed and size. Group the options by what backs them and the landscape gets much simpler.
| Backed by | Common products | Typical use | What to know |
|---|---|---|---|
| Nothing specific (cash flow) | Unsecured business loans, lines of credit, merchant cash advance | Stock, marketing, short gaps, growth | Fast, sized on turnover, a director guarantee is normal |
| Customer invoices | Invoice finance, debtor finance, factoring | B2B firms waiting 30 to 90 days for payment | Limit grows as sales grow |
| The asset being bought | Equipment finance, chattel mortgage, leases | Vehicles, machinery, technology | The asset is the security, so less else is needed |
| Property | Secured business loans, second mortgages, caveat loans, commercial property loans | Larger amounts, tax debt, acquisitions, bridging | Usually the largest amounts; valuation and legal work involved |
| The business itself | Business acquisition loans, vendor finance | Buying an existing business or a franchise | Lenders lean on the target’s profit history |
A business can, and often should, use more than one row at once. A builder might run equipment finance on two utes, an overdraft for day-to-day swings and a property-secured facility for a land purchase, with each matched to its job.
Who lends it?
Australia’s lending market has four broad tiers, and each one says yes to a different kind of borrower.
- Banks. The major and regional banks are usually the cheapest money available. When your business has two or more years of clean financials, solid profit and property to offer, a bank offer deserves serious attention. Their process is thorough, which is also why it can be slow.
- Non-bank lenders. Licensed finance companies that don’t take deposits. They fund themselves through wholesale markets and investors, and they specialise in borrowers banks find awkward: self-employed owners with complex structures, newer businesses, past credit issues. The RBA’s March 2026 Financial Stability Review notes non-bank credit has been growing faster than bank credit while still making up a small slice of the financial system. See non-bank business loans.
- Fintech lenders. Online non-banks that assess from bank statement data and fund within days. They suit trading businesses that want speed over the lowest possible price.
- Private lenders. Investor-funded lenders that lend mainly against property for short terms. They’re the most flexible on credit and timing and usually the most expensive. See private business loans.
Want someone to sort the tiers for you? Start a short enquiry and a specialist will tell you which of them is realistic for your file. No credit check happens at that stage.
Five questions that narrow the field
Before comparing lenders, answer these. Most owners find the list of sensible products drops from a dozen to two or three.
1. What does the money buy? An asset that lasts years (premises, a truck) suits long finance. A short gap (wages before a big invoice lands) suits short finance. Using a five-year loan for a six-week problem means paying interest long after the problem is gone; using a short loan for a long asset squeezes cash flow every month.
2. How fast does it pay itself back? If the purchase generates enough cash to cover its own repayments, borrowing is a tool. If it doesn’t, you’re relying on the rest of the business to carry it, and the amount should be smaller.
3. What can you offer as security? Property equity widens options and lowers costs. Strong receivables open invoice finance. If there’s no security, unsecured lenders are the route and amounts track turnover.
4. How soon do you need it? A bank term loan can take weeks. Fintech and caveat lenders can move within a day or two. Speed has a price, so only pay for urgency you genuinely have.
5. What’s on your record? ATO debt, defaults or a recent decline don’t end the conversation, but they change which tier to approach first. Our declined by the bank page walks through that path without judgement.
Our business loan finder asks a version of these questions and suggests the loan types that usually fit.
How lenders decide
Whichever tier you approach, the assessment covers the same ground with different weightings.
- Capacity to repay. Bank statements, BAS, tax returns and profit and loss. Banks want full financials; many non-banks accept bank statements and BAS instead.
- Security. What the lender can fall back on, and its loan-to-value ratio.
- Character and history. Time trading, credit file, ATO standing, how the business has handled past debt.
- Purpose and exit. Why you need it and, for short loans, exactly how it gets repaid.
Because most business-purpose lending sits outside the consumer credit rules that protect home and personal borrowers, the contract does more of the work. Read the fee schedule, default clauses and any early repayment terms before signing.
What does business finance cost?
Cost tracks risk, speed and security. Property-secured bank lending usually costs least; unsecured fintech and short-term private loans cost most. Fees can matter as much as interest on shorter loans: establishment, valuation, legal, line and exit fees all add up.
The only fair comparison is the total in dollars. Ask every lender for the full amount you’ll repay over the expected term, including every fee, and line the offers up in our loan cost comparison calculator. If you’re working out how much the business can comfortably carry, the borrowing power calculator is a good companion.
A quick illustration
A Geelong landscaping business turning over about $1.4m wants three things in the same quarter: a $95k compact loader, a $40k buffer for the slow winter months and $160k to buy a competitor’s maintenance contracts. Rolling all three into one loan would be a mismatch. A more sensible structure: equipment finance on the loader (the machine secures itself), a revolving line of credit for the winter buffer (drawn only when needed) and a property-secured loan for the contracts, since goodwill alone is hard to lend against. Three products, each matched to its job, often costs less in total than one blunt facility.
Where to from here?
If the map has helped you spot the two or three products that fit, the next useful step is a conversation with someone who sees these files every day. That’s what our enquiry form is for.
It’s short: roughly a minute of your time, and your credit file stays untouched while we look. Your details go to one specialist team, not out to a list of lenders who’ll all ring at once. A real person reads what you’ve written and calls to talk it through. The more exact you are about the amount, the purpose and any security, the faster we can point you at the right option the first time.
Frequently asked questions
What is the difference between business finance and a business loan?
A business loan is one product: a lump sum repaid over a set term. Business finance is the whole toolkit, including overdrafts, lines of credit, invoice finance, equipment finance, property-secured loans, investor equity and grants. Many owners use two or three of these at once for different jobs.
Should I always go to my bank first?
It's a sensible first stop. Banks are often the cheapest lenders and they reward strong financials, property security and a long relationship. If you don't fit their criteria, or you need money faster than their process allows, non-bank and private lenders exist to fill exactly that gap.
Is debt or equity better for a small business?
For most small Australian businesses, debt is more practical because owners keep full control and the cost ends when the loan is repaid. Equity suits businesses with high growth potential and uncertain early cash flow, where repayments would be hard to meet but investors will accept a share of future profit.
How much finance can a business get?
It depends on turnover, profit, existing debts, time trading and what security is on offer. Unsecured lenders size loans on bank statement deposits, typically $5k to $500k. Property-secured lending can reach millions, limited mainly by equity and your ability to repay.
Do consumer credit laws apply to business finance?
Generally the National Credit Code is aimed at personal, household and residential investment lending, and loans used predominantly for business purposes usually sit outside it. That makes reading the contract carefully more important, because fewer automatic consumer protections apply.
Can I get business finance with bad credit or ATO debt?
Often, yes, though usually not from a bank. Specialist non-bank and private lenders assess these cases individually, leaning on property equity, steady bank statements or a clear repayment plan rather than the credit file alone.