Business overdrafts from non-bank lenders are available to a wide range of Australian SMEs - but not all. Certain industries are considered too high-risk or structurally unsuitable for revolving cash flow facilities, and lenders on our panel will not approve applications from businesses in these sectors.
If you're in one of the restricted sectors, it's better to know upfront than to have a credit enquiry placed on your file for a product you won't qualify for.
Excluded industries
The following industries are generally not eligible for unsecured business overdraft facilities through non-bank lenders on OverdraftMe's panel. These exclusions are set by the lenders, not by us.
Always excluded
- Adult-related industries - adult entertainment, escort services, adult content production
- Gambling-related industries - including the advertising and promotion of gambling
- Firearm dealers
- Residential property development - businesses that own, subdivide, build and sell homes, or property builders with concentration risk
- Financial institutions / lenders - where the lender's capital would be used as a source of funding to lend to their own customers
- Shares / stockbrokers and investment businesses
- Not-for-profit organisations - charities, churches, religious organisations
- Mining exploration and mining services
- Primary agriculture (broadacre farming) - cropping, livestock, horticulture
Excluded by most lenders
- Physical auction houses (note: online auction businesses are generally permitted)
- Debt collection agencies / debt purchasers
- Direct marketing - telemarketing, fundraising, mail order, direct mail, pyramid sale schemes
- Foreign currency exchange services
- Freight forwarding and customs clearing houses
- Panel beaters and smash repairers
- Pawn shops / pawnbrokers
- Tattoo studios
- Taxi and ridesharing services - Uber, Ola, DiDi etc
- Ticket resellers / entertainment sales
- Vehicle glass tinting
- Vehicle wrecking yards
Why are these industries excluded?
Each exclusion has a specific reason. Some industries have unpredictable cash flow patterns that make revolving credit facilities hard to service. Others carry reputational, regulatory, or fraud risk that lenders aren't willing to take on at the unsecured level.
Property development involves large capital outlays over 12-36 months with revenue arriving only at settlement. There's no recurring monthly revenue to service an overdraft.
Gambling and adult industries carry regulatory and reputational risk that most non-bank lenders' compliance frameworks exclude automatically.
Financial institutions / lenders are excluded because the lender doesn't want their capital being used to fund someone else's lending book - it creates cascading credit risk.
Panel beaters and smash repairers are excluded due to historically high default rates and the insurer-dependent nature of their revenue.
Taxi and ridesharing businesses have seen significant revenue disruption and lenders view the sector as high-risk.
Primary agriculture has highly seasonal income - a grain farmer might receive most annual revenue in a 4-6 week harvest window. Standard overdraft facilities aren't structured for this.
Important: These restrictions apply to businesses whose primary activity falls in these sectors. A construction business that does some property development alongside commercial builds may still qualify. A mechanic who does some panel work may still qualify. If you're unsure, check your eligibility or call 02 8046 3933 - we'll give you a straight answer.
What if my business is adjacent to an excluded sector?
There's an important distinction between being in an excluded sector and being adjacent to one. Many businesses that service excluded sectors are perfectly eligible:
- An electrical contractor who does some mining site work - eligible (construction trades)
- An agrochemical supplier selling to farms - eligible (wholesale trade)
- A real estate agent selling property - eligible (professional services)
- A builder constructing homes for a developer - eligible (construction)
- An auto electrician - eligible (even though panel beaters aren't)
- A tow truck operator - eligible (even though wreckers aren't)
- A bookkeeper servicing gambling businesses - eligible (professional services)
The key question lenders ask is: what is your primary business activity, and does your revenue flow consistently from it?
Alternatives for excluded industries
If your business falls within an excluded sector, a standard non-bank overdraft isn't available - but you may still have options:
- Bank overdraft (secured) - the major banks will consider property developers and farming businesses, typically secured against real property
- Development finance - specialist lenders offer project-based facilities for property developers
- Agri finance - specialist rural lenders like Rabobank, Rural Bank and NAB Agribusiness have products for farming operations
- Invoice finance - if you have outstanding invoices, invoice financing may be available regardless of sector
- Equipment finance - asset-based lending is available to most industries including some excluded sectors
All other industries are welcome
Outside of these three sectors, OverdraftMe works with businesses across virtually every other industry in Australia - from hospitality and retail to construction trades, professional services, healthcare, technology, transport and more. Our industry pages cover 111 sectors in detail.
If you're unsure whether your business qualifies, the fastest way to find out is to use our eligibility calculator - it takes 60 seconds and has no impact on your credit score.
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