Business finance: loans, lines of credit and vehicles
The right finance at the right time can help a business buy equipment, smooth cash flow or take on a big contract. Here's a plain-English overview of the main options and what to compare, so you can have better conversations with lenders and brokers.
This guide includes links to providers. Some are affiliate or referral links and we may earn a commission if you sign up, at no extra cost to you. Providers marked "We don't earn a commission" pay us nothing. Affiliate disclosure.
Common types of business finance
| Type | What it is | Often used for |
|---|---|---|
| Unsecured business loan | A lump sum without a specific asset as security; often needs a personal guarantee | Short-term growth, stock, fit-outs |
| Secured business loan | A loan secured against property or another asset | Larger or longer-term borrowing |
| Line of credit | A limit you draw on and repay as needed, paying interest on what you use | Cash-flow gaps, seasonal swings |
| Invoice finance | An advance against unpaid customer invoices | Waiting on slow-paying customers |
| Equipment and vehicle finance | Finance secured against the equipment or vehicle being bought | Utes, vans, machinery, tools |
What to compare
- Total cost: interest plus establishment, monthly and early-repayment fees. Ask for the total repayable in dollars.
- Repayment frequency: daily, weekly or monthly, and how it fits your cash flow.
- Security and guarantees: what you're putting on the line, including any personal guarantee.
- Term and flexibility: early repayment, redraw and top-ups.
- Who you're dealing with: a lender lends its own money; a broker or marketplace compares a panel of lenders and is usually paid commission by the lender.
Also check grants and government programs first, using the business.gov.au grants finder (opens in a new tab).
Tools to consider
Listed in no particular order. This isn't every provider in the market, so compare a few and check current pricing and terms on each provider's site.
Valiant Finance
Business loan marketplace
Good for: Businesses wanting to compare business lenders in one application
Valiant Finance is an Australian business loan marketplace that works with a panel of 90+ lenders (per Valiant). It's a broker-style service, so it's paid by lenders.
Worth knowing
- One application to compare multiple business lenders
- Doesn't cover every lender in the market
- Ask how it's paid and read its credit guide
We may earn a commission if you sign up through this link. Disclosure.
Prospa
Small business lender: loans and lines of credit
Good for: Established small businesses needing working capital
Prospa is an Australian online lender to small businesses, offering business loans and lines of credit. Check eligibility criteria, total cost and repayment frequency before applying.
Worth knowing
- Online application
- Lends its own funds (it's a lender, not a broker)
- Compare total cost with other options
We may earn a commission if you sign up through this link. Disclosure.
Lumi
Small business lender: loans and lines of credit
Good for: Small businesses needing working capital
Lumi is an Australian online lender to small businesses, offering business loans and lines of credit. As with any lender, compare fees, repayment terms and security requirements.
Worth knowing
- Business loans and lines of credit
- It's a lender, not a broker
- Read the contract and fees carefully
We may earn a commission if you sign up through this link. Disclosure.
Driva
Car and personal loan broker
Good for: Buying a vehicle and wanting a broker to compare lenders
Driva is an Australian car and personal loan broker that matches applicants with a panel of 50+ lenders (per Driva). As a broker it's paid by lenders. Ask about fees and read its credit guide before applying.
Worth knowing
- Compares a panel of lenders, not the whole market
- Personal or business-use vehicle loans have different rules, so ask which applies
- A broker's credit guide explains how it's paid
We may earn a commission if you sign up through this link. Disclosure.
Free official resources
Common questions
Is this page financial or credit advice?
No. It's general information only. We don't suggest any particular loan or lender, and we haven't considered your circumstances. Talk to a licensed broker or your accountant about your situation.
What's the difference between a lender and a broker?
A lender provides the money. A broker or marketplace compares loans from a panel of lenders and is usually paid commission by the lender you choose. Brokers must give you a credit guide explaining this.
Do business loans have the same protections as personal loans?
Not always. Many consumer credit protections apply to loans for personal, domestic or household purposes, and business-purpose loans may be treated differently. Read the contract and ask the lender.