Which business loan is right for me?

Search “which business loan is right for me” and you’ll find long lists of loan types, each described in a paragraph that sounds a lot like the last. Useful, maybe, if you already know what you need. Not so useful if you’re trying to work that out.

So let’s do it differently. Instead of starting with products, we’ll start with you. Four questions narrow the field quickly, and by the end you should have a short list of options worth exploring — plus a clear sense of which ones to skip.

Question 1: Do you, or a director, own property?

This is the biggest fork in the road. Residential or commercial property with some equity opens up property-secured business loans from $20,000 to $5,000,000 — first mortgages, second mortgages and caveat loans.

Why does property matter so much? Because the security carries much of the lender’s risk. That means:

• larger amounts become possible,
• newer businesses with little trading history can still be funded,
• bruised credit or ATO debt carries less weight, and
• longer terms can bring repayments down.

If you own property but aren’t sure how much equity you have, a rough estimate is enough to start: what the property might be worth, minus what’s owed on it. If there’s no property in the picture, that’s completely fine — the next questions matter more for you.

Question 2: How long have you been trading?

Without property, lenders size funding on your track record. Your business bank statements are the main evidence.

• Not trading yet or only a few months: unsecured options are usually limited until there’s more history. Property security, savings or a smaller start are the common routes.
• Six to twelve months: some unsecured options may open up, depending on how consistent your deposits are.
• A year or more with steady deposits: unsecured loans and lines of credit, typically $5,000 to $500,000, become realistic.

Our stage guides explain what’s typical at each point, from starting out to established.

Question 3: What goes into your business account each month?

Monthly deposits — the money from sales that actually lands in your business account — tell a lender what repayments the business can carry. Consistency matters as much as size. Seasonal or lumpy income is fine as long as the pattern makes sense.

Two quick tips:

• Keep all sales flowing into one business account. Split accounts hide part of your trading.
• Separate personal and business spending. It makes your statements far easier to read.

If you’d like to see how your deposits stack up, ask a real person what’s realistic — there’s no credit check when you first enquire.

Question 4: What will the money do?

This question decides the structure. The same business might need a loan for one job and a line of credit for another.

What the money is for	Tends to suit
A one-off purchase with a clear payback (equipment, fit-out, vehicle)	A loan matched to the asset’s life
A gap that opens and closes regularly (wages before invoices, stock before sales)	A line of credit
A short-term, urgent need with a clear way out (a tax bill, a settlement gap)	A second mortgage or caveat loan
Several debts that need simplifying	A consolidation loan, often property-secured
A big, long-term investment (buying premises, buying a business)	A property-secured loan

Our goal guides go deeper into each one.

Putting it together: your short list

Here’s how the four answers typically combine. Treat it as a starting point, not a verdict.

Your situation	Options worth exploring first
Own property, any trading history	Property-secured loan; second mortgage or caveat for short-term needs
No property, trading 1+ years, steady deposits	Unsecured loan; line of credit for recurring needs
No property, trading under 6 months	Build history first; savings; grants; revisit soon
Bruised credit or ATO debt, own property	Property-secured loan, assessed case by case
Bruised credit, no property, trading well	Unsecured options, assessed case by case

Want this done for you? The 2-minute funding profile asks these questions (and a few more) and builds a personalised plan with your options ranked.

What about bank vs non-bank lenders?

Banks suit some businesses well, particularly those with strong financials, straightforward structures and time to wait. Non-bank and private lenders assess differently: often more flexible on documents, structure and credit history, and often faster to decide. The trade-off is usually cost. The right lender is the one that fits your situation, your timing and your purpose.

How do you compare offers once you have them?

• Total cost in dollars over the life of the facility, including all fees.
• Term — does it match the purpose?
• Security — what’s being offered, and what happens if things go wrong?
• Flexibility — can you repay early? Redraw?
• Fit — does the structure match what the money is actually doing?

A cheaper-looking offer that doesn’t fit the purpose can end up costing more than a better-fitting one.

What mistakes do people make when choosing?

A few patterns come up again and again:

• Choosing by speed alone. Fast matters sometimes, but the wrong structure costs more over time than a few extra days would have.
• Using a lump sum for a recurring need. The gap comes back, and now there’s a repayment on top.
• Stretching short-term money over long-term needs. Repayments squeeze cash flow when they don’t match the asset.
• Applying everywhere at once. A burst of credit enquiries can make lenders cautious.
• Leaving out the awkward details. Credit issues and ATO debt are considered case by case, but only if they’re known early.

Avoid those five and you’re already ahead of most borrowers.

Still not sure? Let’s work it out together

Choosing a business loan shouldn’t feel like guesswork. Whether you’ve narrowed it down already or you’re still weighing things up, a short conversation with someone who understands business lending can save a lot of time.

Enquiring takes about 60 seconds and there’s no credit check at that stage. We don’t farm your details out to a stack of lenders — a real person reads your answers and calls you. Please fill the form in accurately, especially property, trading time and monthly deposits, so we can point you to the right fit first time.

See if you qualify →