Eligibility guide - updated May 2026

Business Line of Credit Eligibility: Who Qualifies and What You Need

By John Pierre Saliba · OverdraftMe · ACL 511092 · MFAA Member
In this guide
  1. The 5 core criteria
  2. What disqualifies you
  3. Bank vs non-bank criteria
  4. Documents you need
  5. How to improve your chances
  6. How much you can get
  7. FAQs

5 things you need: ABN active 6+ months, $6,000+/month in revenue, Equifax score 550+, no current bankruptcies, and 6 months of business bank statements. No property required. No tax returns required under $150K.

About 70% of the businesses that enquire through OverdraftMe meet the minimum criteria. The other 30% usually fall short on credit score or trading history. This guide explains exactly what you need, what stops you, and what you can do about it.

The 5 Core Eligibility Criteria

6 months of trading history is the minimum starting point. Here are all five criteria that non-bank lenders assess.

  1. Active ABN for 6+ months. Your Australian Business Number must have been registered and active for at least 6 months. Some lenders require 12 months. The ABN registration date is what counts, not the date you started trading.
  2. Minimum $6,000/month revenue. This is measured by total deposits into your business bank account over the last 6 months. Lenders want to see consistent inflows. $6K/month is the floor. Most approved applicants have $15K-$50K/month.
  3. Equifax credit score 550+. This is the director's personal Equifax score. Not Experian, not Illion, not a business credit score. You can check yours free at equifax.com.au. Scores above 650 get better rates and higher limits.
  4. No current bankruptcy or Part IX debt agreement. Active bankruptcy is a hard stop. Discharged bankruptcy (3+ years ago) may be considered by some lenders, depending on the rest of your profile.
  5. Not operating in a restricted industry. Gambling, adult services, cryptocurrency trading, and a few other industries are excluded by most lenders. See the full restricted industry list.

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What Disqualifies You

4 things will stop most lenders from approving your application. Some of these can be fixed. Others need time.

ATO debt does not automatically disqualify you. If you have an active ATO payment plan and you are keeping up with payments, most lenders will still consider your application.

Bank vs Non-Bank Eligibility Criteria

2 years is the minimum trading history at most banks. Here is how bank and non-bank criteria compare side by side.

CriteriaNon-bank (via OverdraftMe)Major bank
Minimum trading time6 months2+ years
Minimum revenue$6,000/month$20,000+/month (varies)
Credit score550+ Equifax600+ (often 650+)
Tax returns requiredNo (under $150K)Yes (2 years)
Financial statementsNoYes (2 years)
BAS requiredNoYes (12 months)
Property securityNot required (unsecured to $500K)Often required above $50K
ATO debt OKYes, with payment planUsually no
Approval timeline1-24 hours2-6 weeks

Banks offer lower rates, but the eligibility bar is much higher. If your bank has already declined you, or if you do not have 2 years of financials ready, a non-bank facility through OverdraftMe is the realistic path. Read our guide for businesses declined by their bank.

Documents You Need to Apply

3 documents is all you need for a non-bank line of credit under $150K. No accountant involvement required.

For facilities above $150K, some lenders may also request:

No lender on our panel requires property valuations, business plans, or profit and loss forecasts for standard unsecured facilities.

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How to Improve Your Chances of Approval

30 days of preparation can make a real difference to your approval odds and your rate. Here is what to do.

  1. Check your Equifax score. Get your free report at equifax.com.au. If it is below 550, identify what is dragging it down. Paid defaults that have not been removed, high credit card utilisation, and too many recent enquiries are the most common issues.
  2. Clear any small defaults. A $200 unpaid phone bill default has the same impact as a $5,000 default. Pay it off and request removal from your credit file. This can add 30-50 points to your score within 30 days.
  3. Stop the cash withdrawals. Lenders read your bank statements closely. Frequent large cash withdrawals are a red flag. If you are pulling $2,000 cash every week, switch to card payments for 3 months before applying.
  4. Reduce overdraft or credit card cycling. If you are constantly maxing out an existing facility and repaying it, lenders see that as stress. Try to keep utilisation below 70% in the months before your application.
  5. Get your ATO debt onto a payment plan. An ATO debt with no plan is much worse than an ATO debt with an active payment plan. Call the ATO on 13 28 61 and set one up before you apply.

How Much Can You Get Approved For?

$10,000 to $500,000 is the range for unsecured non-bank lines of credit. Your limit depends on your monthly revenue.

Monthly revenueTypical approved limit
$6,000 - $15,000$10,000 - $25,000
$15,000 - $30,000$25,000 - $50,000
$30,000 - $80,000$50,000 - $150,000
$80,000 - $200,000$150,000 - $300,000
$200,000+$300,000 - $500,000

Most lenders approve between 1x and 1.5x your average monthly revenue. A business depositing $50K/month would typically qualify for a $50K-$75K facility. Use our borrowing calculator for an instant estimate.

Real example: a plumbing contractor in Melbourne with $45K/month revenue, Equifax score of 610, and 14 months trading was approved for a $60K line of credit at 17.5% p.a. through OverdraftMe. Total approval time: 4 hours. Funded same day.

Related Guides

JP
John Pierre Saliba
Director, OverdraftMe | Credit Representative ACL 511092
Specialist business finance broker with over $600 million in finance facilitated for Australian SMEs. MFAA Member. AFCA Member. Full profile
MFAA MemberAFCA MemberACL 511092$600M+ Funded

General information only. Not financial advice. Credit subject to lender assessment. All rates, fees and terms quoted are indicative only and subject to change based on your individual circumstances, credit profile and lender policy at the time of application. OverdraftMe is a credit representative of Lend & Loan Pty Ltd (ACL 511092).

Frequently asked questions

What credit score do I need for a business line of credit?

Most non-bank lenders require an Equifax credit score of 550 or above. This is the director's personal score, not a business credit score. Scores above 650 qualify for better rates and higher limits. Some specialist lenders will consider scores below 550, but options are limited.

Can I get a business line of credit with an ATO debt?

Yes, if you have an active ATO payment plan and you are meeting the payments. Most non-bank lenders accept ATO debts with a current payment plan. Unpaid ATO debts with no plan in place are more difficult. The key is to show the lender you are managing the debt, not ignoring it.

Do I need property to get a business line of credit?

No. Unsecured business lines of credit up to $500K are available through non-bank lenders based on cash flow alone. No property, no real estate, no asset security required. A personal guarantee from the director is standard.

What documents do I need to apply?

For facilities under $150K through a non-bank lender: 6 months of business bank statements (PDF from internet banking), a valid driver's licence, and your ABN. No tax returns, no financial statements, no BAS required.

How long does my business need to be trading?

6 months minimum with most non-bank lenders. Some lenders require 12 months. Banks typically require 2+ years. The 6-month threshold means you need 6 months of bank statements showing business activity.

Related reading
Business Line of Credit Australia 2026 - The Complete Guide Business Line of Credit Rates Australia 2026 - What You Will Actually Pay Business Line of Credit vs Overdraft Australia - What's the Difference? Business Loan →
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