A small business loan is the most straightforward way to put capital to work in your business: you receive a lump sum between $5,000 and $500,000, use it for the move you’ve been planning, and repay it in regular instalments. No 40-page application, no three-week wait. At FastBiz Loans the whole thing starts with a 60-second online enquiry, and once your bank statements are in, a decision can come back in as little as 4 hours.
This page explains how small business loans work in Australia, what you can use one for, what lenders actually look at, and the fastest realistic path from “we should do this” to money in your account.
What is a small business loan?
A small business loan is a fixed amount of money lent to your business for a business purpose, repaid in scheduled instalments over a set period. You know the amount up front, you know the repayment rhythm, and the money lands in one go.
That makes it different from a business line of credit, where you draw and repay against a limit as you go, and from invoice finance, where the amount depends on the invoices you’re waiting to be paid. A lump-sum loan suits a clear, one-off purpose with a price tag: a fit-out, a bulk stock order, a marketing push, a second van.
Loans are business finance only. Sole traders, partnerships, companies and trusts can all apply, as long as the funds are for the business rather than personal spending.
What can you use a small business loan for?
Almost any legitimate business purpose. The most useful question isn’t “is this allowed?” but “will this move pay for itself?” Here’s how owners commonly put a small business loan to work:
| What you’re funding | Why a lump sum fits | Example |
|---|---|---|
| Stock and inventory | Buy in bulk ahead of a peak and sell through it | A Hobart homewares shop stocking up before Christmas |
| Working capital | Smooth the gap between paying costs and getting paid | A Cairns tour operator covering wages before peak season |
| Fit-out or refurbishment | One-off project with a clear cost | A Newcastle physio adding a second treatment room |
| Marketing and growth | Fund a campaign or a new service line | An online store launching a new product range |
| Hiring | Cover wages while a new team member ramps up | A Canberra IT consultancy adding a developer |
| Tax and BAS timing | Keep obligations current without draining the float | A builder settling a quarterly BAS while a progress claim is outstanding |
If what you’re buying is a vehicle or machinery, equipment finance is often a better fit because the equipment itself usually forms the security. If your need comes and goes month to month, a revolving limit may suit better than a single lump sum.
Unsecured or secured: which suits you?
Most small business loans at the smaller end are unsecured, meaning no property or specific asset is pledged. Larger amounts may be secured against property or business assets. Both have their place.
| Unsecured small business loan | Secured small business loan | |
|---|---|---|
| What backs the loan | Your business’s revenue and conduct, usually with a director guarantee | A specific asset, such as property or equipment |
| Speed | Often the fastest, because there’s no asset to value | Can take longer while security is documented |
| Who it suits | Established trading businesses with steady deposits | Larger amounts, or businesses wanting to strengthen an application |
| What to have ready | Bank statements, ID, ABN | The same, plus details of the security |
A director guarantee is a personal promise from the business owner or director to repay if the business can’t. It’s standard with unsecured business lending, and your lending specialist will explain it plainly before you sign. For a deeper look at the no-property option, read our page on unsecured business loans.
What do lenders look at before approving a small business loan?
Lenders look at whether your business can comfortably meet the repayments. Most of that story is told by your business bank statements. Here’s the checklist of basics for most applications:
- Trading history: six months or more of trading.
- Revenue: $5,000 or more in monthly revenue.
- Registration: an active ABN (or ACN for companies).
- Owner: an Australian resident director or owner.
- Banking: a business bank account the revenue flows through.
- Credit position: no undischarged bankruptcy.
Beyond the basics, an assessor reading your statements will notice how consistent your deposits are, whether the account regularly goes overdrawn or has dishonoured payments, what other finance repayments are already coming out, and whether tax obligations look under control. None of this needs to be perfect. It needs to make sense. Our guide to what lenders look for in bank statements walks through each signal.
Not sure you tick every box? The eligibility checker takes six quick questions and shows which products are likely to fit.
How fast can I get a small business loan?
Decisions can come back in as little as 4 hours, and same-day funding is possible once you’re approved and your documents are signed. Speed is real, but it’s not magic. It comes from a short process and the way statements are now shared.
Many lenders now read bank statements digitally through a secure, read-only bank link or through open banking under the Consumer Data Right. Instead of you downloading PDFs and someone keying numbers into a spreadsheet, the data arrives in a consistent format in minutes. That’s a big part of why a decision in hours, not weeks, is possible.
Here’s the fastest realistic path:
- Enquire online. The form takes about 60 seconds and doesn’t affect your credit score.
- Talk it through. A lending specialist calls to confirm the amount, the purpose and which options fit.
- Share your statements. Connect your business account securely and upload your photo ID. Most owners finish this in a lunch break.
- Get a decision. In as little as 4 hours for straightforward applications.
- Sign and fund. E-sign the documents; same-day funding is possible from there.
What can slow things down?
Being honest about this saves you time. A decision takes longer when bank statements or ID arrive late, when the loan is over $150,000 (financial statements are then needed), when there’s security to document, or when questions go unanswered for a day. The quickest applicants have their ID handy, connect statements straight away and pick up the phone when the lending specialist calls back.
How much can my business borrow?
It depends mostly on your revenue, what your bank statements show you can comfortably repay, and the finance you already carry. The range is $5,000 to $500,000, but the right number for you is the one your cash flow handles without strain.
A useful habit: work out what the money will do before you settle on how much. If a $40,000 stock order is expected to sell through at a healthy margin across the season, borrowing $40,000 is a plan. Borrowing $80,000 “just in case” is a burden. Our guide on how much your business can borrow shows how lenders size a loan with illustrative examples.
Loans over $150,000 need financial statements in addition to bank statements, so if you’re near that line, factor in the time to get them from your accountant.
Example scenario — illustrative only. Mia runs a Geelong electrical contracting business with steady monthly revenue. She wins a commercial fit-out contract that needs materials bought up front. She enquires online on a Tuesday morning, connects her business account and uploads her licence before lunch, and has a decision that afternoon. She e-signs the documents and the funds land the same day, so she orders materials without touching the money set aside for wages and BAS.
How are repayments structured?
Repayments on a small business loan are regular and predictable: typically weekly, fortnightly or monthly, over a short to medium term matched to what you’re funding. Predictable is the point. You can put the repayment straight into your cash flow forecast and plan around it.
A good rule of thumb is to match the repayment rhythm to the way money comes into your business. A cafe with daily takings may prefer weekly repayments; a consultancy that invoices monthly may prefer monthly. Ask your lending specialist which options are available for your loan.
On price: every loan is priced on your business’s individual situation, and we look for the sharpest option available for your circumstances. You’ll see the full cost in your documents before you commit.
When a small business loan isn’t the right tool
A lump-sum loan is a great tool for a defined purpose. It’s not always the best tool. Consider something else if:
- Your need goes up and down. If you need a buffer rather than a one-off sum, a revolving line of credit means you only pay for what you draw.
- Your cash is stuck in unpaid invoices. If customers take 30 to 60 days to pay, unlocking those invoices may solve the problem at its source.
- Most of your sales are on card. A merchant cash advance flexes with takings, which can suit seasonal hospitality and retail.
- You’re buying a big asset. Equipment finance often allows a longer arrangement matched to the working life of the equipment.
- You’re brand new. If you’ve been trading under six months, look at startup business loans, which are assessed differently.
Still weighing it up? Compare the six products side by side before you choose.
What you’ll need to apply
Keep it simple. For most small business loans you’ll need:
- 3–6 months of business bank statements (shared securely online)
- Photo ID, such as a driver licence or passport
- Your ABN or ACN
- Financial statements, but only for loans over $150,000
That’s it for most applications. If you’d like a full list by product and loan size, see the business loan documents checklist in our guides.
Ready to put capital to work?
If you’ve got a clear purpose and a business that’s been trading for six months or more, you’re closer to funding than you think. Start your 60-second enquiry, and a lending specialist will come back to you to talk through the options that fit.
Your path to funds
Step 1
60-second online enquiry — no impact on your credit score
Step 2
A lending specialist calls to talk through amount, purpose and options
Step 3
Share bank statements securely online and upload photo ID
Step 4
Decision in as little as 4 hours
Step 5
E-sign your documents — same-day funding possible
Questions we get asked
What is the minimum I can borrow with a small business loan?
Small business loans start at $5,000 and go up to $500,000. Smaller amounts are usually the quickest to assess because they rely mainly on your bank statements, ID and ABN. Tell us what you need it for and we'll help you land on a sensible figure rather than a padded one.
Do I need property to get a small business loan?
No, not always. Many small business loans are unsecured, which means no property is put up as security and the assessment leans on your revenue and bank statements. Larger amounts or more complex situations may be secured, and security can sometimes widen your options.
Will applying affect my credit score?
The 60-second enquiry form doesn't affect your credit score. A credit check is only part of a formal application, and your lending specialist will talk you through that before it happens. That way you can explore your options first.
Can I get a small business loan with bad credit?
Past credit issues, including defaults, can be considered case by case. What usually matters most is what's happening in your business now: steady deposits, sensible account conduct and a clear explanation of what went wrong before. There's no promise of approval, but an honest application is always worth a conversation.
How much does a small business loan cost?
Every loan is priced on your business's individual situation, including trading history, revenue, credit profile, security and the amount you need. We look for the sharpest option available for your circumstances and show you the full cost before you sign anything.
Can I repay a small business loan early?
Many lenders allow early repayment, but the conditions vary from loan to loan. Ask your lending specialist to explain the early payout position before you sign, so you know exactly how it works if a big job pays early or a busy season beats expectations.
Can sole traders get a small business loan?
Yes. Sole traders, partnerships, companies and trusts can all apply as long as the finance is for business purposes and the basics are in place, including an active ABN and at least six months of trading.