What do I need to apply for a business loan?

Typically: 2 years of BAS statements, 2 years of tax returns, recent profit & loss and balance sheet, 6 months of bank statements, business plan (for startups), and a valid ABN with GST registration. Requirements vary — online lenders often need less documentation but charge higher rates.

Can I get a business loan as a startup?

Yes, but it's harder. Options include: government-backed SME Guarantee Scheme loans, unsecured fintech lenders (higher rates), equipment finance (the equipment itself is security), or using personal assets as security. Having a strong business plan, industry experience, and personal savings helps significantly.

Is business loan interest tax deductible?

Yes. Interest on loans used for business purposes is generally 100% tax-deductible as a business expense. This applies to sole traders (deducted on individual tax return) and companies (deducted from company income). The loan must be genuinely for business purposes — mixed-use loans need apportionment.

Business Loan Calculator

Calculator

Calculate repayments on Australian business loans including term loans, lines of credit, and equipment finance. Compare secured vs unsecured rates.

Free to useNo data storedAI insightsUpdated: February 2026

Business loans come in many forms — secured term loans, unsecured facilities, lines of credit, equipment finance, and commercial property loans. Each has different rates, terms, and requirements. Australian business loan rates currently range from 6% (secured, prime borrower) to 15%+ (unsecured, startup). This calculator helps you compare repayments across different loan structures and find the most cost-effective option for your business.

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Real-World Examples

Secured Business Expansion Loan

A café owner borrows $200,000 at 7.5% over 5 years (secured against property) to open a second location.

Monthly repayment: $4,010. Total interest: $40,600. Total cost: $240,600. The interest is 100% tax deductible, so the after-tax cost at a 30% company rate is $28,420 in interest.

Unsecured Working Capital

An e-commerce business needs $50,000 for inventory at 12% over 2 years (unsecured).

Monthly repayment: $2,354. Total interest: $6,496. Total cost: $56,496. While the rate is higher than secured, the fast approval (2-3 days) and no asset requirement makes this suitable for short-term inventory funding.

Frequently Asked Questions

Glossary

Secured Business Loan

A loan backed by an asset (property, equipment, or inventory) as collateral. Offers lower interest rates but the lender can seize the asset if you default.

Unsecured Business Loan

A loan without collateral. Higher interest rates but faster approval and no risk to specific assets. Often offered by fintech lenders.

Line of Credit

A flexible arrangement where you can borrow up to a set limit and only pay interest on the amount drawn. Ideal for managing variable cash flow.

SME Guarantee Scheme

An Australian Government scheme where the government guarantees up to 50% of new unsecured loans to SMEs, allowing lenders to offer better terms.

Related Tools

GST Calculator

Calculate GST on business transactions and invoices.

Cash Flow Forecast

Project your business cash flow to ensure loan repayments are manageable.

Break Even Calculator

Calculate how much revenue covers your costs including loan repayments.

How to Use

1Enter the loan amount you need.
2Input the interest rate (or use the default for your loan type).
3Set the loan term in years.
4Select the type of business loan.
5Choose your preferred repayment frequency.
6Get repayment amounts, total interest, and comparison insights.

Key Information

Secured business loans (backed by property or assets) offer rates from 6-9%.
Unsecured business loans typically range from 8-15% but have faster approval (sometimes same-day).
Interest on business loans is generally tax-deductible as a business expense.
Many lenders require 2+ years of business financials (BAS, tax returns, profit & loss).

Pro Tips

Shop around — rates vary significantly between big banks, online lenders, and specialist business lenders.
If you have property to secure the loan, always compare a secured business loan vs an unsecured one — the rate difference can save thousands.
Consider whether a line of credit (pay interest only on what you draw) is more appropriate than a term loan for variable cash flow needs.
Look into government-backed loans: the SME Guarantee Scheme allows some lenders to offer unsecured loans up to $5M at competitive rates.

Avoid These Mistakes

Only looking at the interest rate — comparison rates, fees (application, monthly, early exit), and total cost matter more.
Borrowing too much or too little — borrow what you need plus a 10-20% buffer for unexpected costs.
Not having your financials in order — lenders want BAS statements, tax returns, profit & loss, and cash flow forecasts.
Choosing a term that's too short, creating cash flow pressure — balance between minimising interest and manageable repayments.

Disclaimer: This calculator provides estimates only and should not be relied upon for financial decisions. Interest rates, fees, and policies change frequently. Always verify information with lenders directly. This is general information, not personal financial advice. Consider seeking advice from a licensed mortgage broker or financial advisor.

Last updated: February 2026