Many sole traders assume business finance is only available to companies and larger businesses. That's not the case. Sole traders with an active ABN and consistent monthly turnover can access business overdrafts and loans in Australia - often with the same limits and terms as incorporated businesses.
Can sole traders get a business overdraft in Australia?
Yes. As long as you have an active ABN, at least 6 months of trading history, and a minimum monthly turnover of $6,000, you can be considered for a business overdraft or business loan as a sole trader.
The key difference from a company structure is that as a sole trader, you and your business are legally the same entity. This means lenders assess your personal financial situation alongside your business performance - your personal credit score carries more weight than it would for a company director.
Key point: Sole traders can access unsecured business finance up to $150,000 without property security. Above $150,000, property ownership is generally required - in your own name, not a company name.
Eligibility requirements for sole traders
- Active ABN registered in your name
- Minimum 6 months trading as a sole trader
- Minimum $6,000 monthly turnover through your business bank account
- Australian citizen or permanent resident
- 18 years or older
- Good personal credit history - Equifax score of 550 or above
- No recent defaults, dishonoured payments or court judgements
- Active business bank account (separate from personal is preferred)
Tip: Keep a dedicated business bank account separate from your personal account. Lenders need to see business revenue clearly - mixing personal and business transactions makes assessment harder and can reduce the amount you qualify for.
How much can a sole trader borrow?
Sole trader finance at a glance
The amount available depends on your monthly revenue, credit profile, and whether you own property. A sole trader turning over $20,000 per month with a clean credit file can typically access $50,000–$100,000 unsecured.
Personal guarantees for sole traders
As a sole trader, you are personally liable for all business debts anyway - so a personal guarantee is essentially a formality rather than an additional risk. It confirms that you personally commit to repaying the facility if you cannot meet repayments from business revenue.
This is the same requirement that applies to company directors, and it's standard across the industry for business lending in Australia.
How to apply as a sole trader
The process is the same as for any business - and just as straightforward:
- Use our finance calculator for an indicative quote
- Submit an enquiry with your name, email and mobile
- Our broker reviews your profile and matches you to the right lender
- Provide 6 months of business bank statements and ID
- Receive a decision - often within 24 hours
Sole trader? Check your eligibility now
Free broker service - we're paid by the lender, not you. No credit check to start.
Get my indicative quote →