A revolving credit facility that lets you draw funds when you need them and repay as cash flows in. Up to $500K, no tax returns under $150K.
Check your eligibility →A business line of credit is a revolving facility that gives your Australian business access to funds up to an approved limit. Draw what you need, when you need it, pay interest only on what you use. When you repay, the funds are available again without reapplying. It is one of the most flexible working capital tools available to Australian SMEs.
Through OverdraftMe, business lines of credit from $10,000 to $500,000 are available through our panel of 50+ non-bank lenders. No tax returns, no property security, decisions from 1 hour.
Compare 50+ lenders in 2 minutes. No credit impact.
Check eligibility → Call 02 8046 3933A business line of credit is a pre-approved borrowing facility with a set limit. Unlike a term loan where you receive a lump sum and repay over a fixed schedule, a line of credit lets you draw and repay repeatedly. Once repaid, the funds become available again. No new application, no new credit enquiry.
Think of it as a pool of money your business can access whenever needed. You might draw $20,000 to buy stock this week, repay $15,000 when a client pays next week, then draw $30,000 for payroll the week after. The facility revolves continuously for the life of the agreement.
Interest is charged only on the amount you have drawn at any time, not the full approved limit. A $100,000 line of credit sitting completely unused costs only the annual line fee, typically $1,000 to $2,000 per year. The moment you draw $30,000, interest starts accruing on that $30,000 only. When you repay it, the interest stops immediately.
This structure makes lines of credit dramatically cheaper than they appear on paper, because most businesses only use a fraction of their limit at any given time. A business with a $100,000 facility that averages $25,000 drawn is paying interest on $25,000, not $100,000.
Interest rates on a business line of credit in Australia depend on whether the facility is secured by property or unsecured:
| Facility type | Interest rate | Line fee | Establishment fee | Approval time |
|---|---|---|---|---|
| Unsecured (non-bank lender) | 14.55% - 25% p.a. | 1% - 2% p.a. | $0 - $995 | Same day |
| Secured (bank) | 6% - 12% p.a. | 0.5% - 1.7% p.a. | $500 - $2,000+ | 4-8 weeks |
The rate you receive depends on your credit score (higher is better), trading history (longer is better), monthly revenue (higher is better), and whether you offer property as security.
Through OverdraftMe, we compare 50+ lenders simultaneously to find the lowest rate for your specific profile. We submit to one lender only, protecting your credit score from multiple enquiries. Full 2026 rate comparison.
The real cost depends on how much you actually draw. Here is a realistic cost breakdown at different usage levels, assuming 18% p.a. interest and 1.5% line fee:
| Usage level | Average drawn | Monthly interest | Monthly line fee | Total monthly cost | After tax (25% rate) |
|---|---|---|---|---|---|
| Light (25%) | $25,000 | $375 | $125 | $500 | $375 |
| Moderate (50%) | $50,000 | $750 | $125 | $875 | $656 |
| Heavy (75%) | $75,000 | $1,125 | $125 | $1,250 | $938 |
| Fully drawn (100%) | $100,000 | $1,500 | $125 | $1,625 | $1,219 |
All interest and fees on a business line of credit used for business purposes are generally tax deductible under Section 8-1 of the Income Tax Assessment Act 1997. At the 25% base rate entity tax rate, the after-tax cost is 25% lower than the gross cost. Full tax deductions guide.
For cost breakdowns at specific facility sizes: $20K | $50K | $75K | $100K | $200K
In practice, a business line of credit and a business overdraft are almost identical products. Both are revolving facilities. Both charge interest only on drawn amounts. Both can be unsecured. Both have similar rates and fee structures.
The technical difference is how you access funds. An overdraft is linked directly to your business transaction account, which means you access funds by going into a negative balance on your everyday account. A line of credit is typically a separate facility where you transfer funds to your bank account when needed.
Most non-bank lenders use the terms interchangeably. When you apply through OverdraftMe, we match you to the best product regardless of what the lender calls it. The rates, terms, and functionality are what matter, not the label. Full line of credit vs overdraft comparison.
A business term loan gives you a lump sum with fixed weekly or monthly repayments over a set term, typically 6 to 24 months. Interest is charged on the full loan amount from day one.
A line of credit is revolving, with flexible repayments and interest only on drawn amounts. There is no fixed repayment schedule.
| Line of credit | Term loan | |
|---|---|---|
| Structure | Revolving - draw and repay repeatedly | Lump sum with fixed repayments |
| Best for | Ongoing cash flow management | One-off purchases (equipment, vehicles) |
| Interest on | Only what you draw | Full loan amount from day one |
| Repayments | Flexible - repay when cash allows | Fixed weekly or monthly schedule |
| Reusable? | Yes - facility resets when repaid | No - need to reapply for more |
| Rate | 14.55% - 25% (unsecured) | 12% - 22% (unsecured) |
Use a line of credit for ongoing working capital. Use a term loan for specific purchases with a defined repayment timeline. Many businesses use both: a line of credit for cash flow and a term loan for assets. Full comparison.
We will recommend the best option for your situation. Free, no obligation.
Get a recommendation →A business line of credit can be used for any legitimate business purpose. The most common uses include:
Through OverdraftMe's panel of 50+ non-bank lenders, the minimum requirements for a business line of credit are:
You do NOT need: tax returns, BAS, profit and loss statements, balance sheets, financial statements, business plans, property security (under $150,000), or a specific industry. Full eligibility guide.
Banks typically require 2+ years trading, full financial statements for two years, lodged tax returns, 12 months of BAS, and often property security. Approval takes 4-8 weeks. This is why most SMEs under 2 years old or without property available use non-bank lenders through a broker.
Non-bank lenders typically approve 1 to 1.5 times your average monthly revenue for a line of credit facility. Limits range from $10,000 to $500,000.
| Monthly revenue | Typical facility 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 |
As your business grows and you build a repayment track record, limit increases are common. Many clients start with $30,000-$50,000 and increase to $100,000+ within 12 months without reapplying from scratch. Use our borrowing calculator for an instant estimate.
OverdraftMe's service is completely free. We are paid by the lender on settlement, not by you. There is no cost to enquire, no cost for advice, and no obligation to proceed.
Full application guide | No credit check to enquire | Same-day funding guide
OverdraftMe compares 50+ lenders for business lines of credit. Our panel includes Shift, Prospa, Moula, Banjo, Bizcap, Lumi, OnDeck, Judo Bank, and many others. Each lender has different strengths:
Our job is to match your specific profile to the single best lender. This is why using a broker matters. You do not need to know which lender is best for you. We do.
OverdraftMe arranges lines of credit for businesses across every industry in Australia. Our most common industries include:
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Full advantages and disadvantages breakdown
In practice, yes. Both are revolving facilities where you draw and repay as needed, paying interest only on drawn amounts. The structural difference is minor. An overdraft links to your transaction account while a line of credit may be a separate facility. Most non-bank lenders treat them identically.
Yes, with limitations. The minimum Equifax score for most non-bank lenders is 550. Some specialist lenders will consider lower scores. Bad credit may result in a smaller facility and higher interest rate, but it does not automatically disqualify you. Over 60% of businesses approved through OverdraftMe have imperfect credit histories. Bad credit business loan guide.
Through OverdraftMe, decisions come from 1 hour and same-day funding is available for straightforward applications submitted before 11am. Apply before 11am with your bank statements ready for the best chance of same-day settlement. Same-day funding guide.
Yes. All interest and fees on a business line of credit used for business purposes are generally tax deductible under Section 8-1 of the Income Tax Assessment Act 1997. This includes interest on drawn funds, the line fee on the full limit, and the establishment fee. Tax deductions guide.
No. Unsecured business lines of credit up to $500,000 are available based on business cash flow alone. No property, no assets, no collateral. No property guide.
6 months with most non-bank lenders. Some accept from 3 months with stronger revenue. Banks typically require 2+ years. New business guide.
$6,000 per month deposited into your business bank account for most non-bank lenders. Some lenders will consider lower turnover for established businesses with strong credit profiles.
Most facilities are reviewed annually. The lender reassesses your business performance, typically from updated bank statements. If your revenue has maintained or grown and your repayment history is clean, the facility is renewed automatically. Many businesses receive limit increases at review. If revenue has dropped significantly, the lender may adjust the limit.
OverdraftMe is operated by John Pierre Saliba, a senior finance broker with over 10 years of experience in Australian financial services. John's qualifications include:
When you enquire through OverdraftMe, you deal with John directly from first conversation to settlement. No call centres, no junior staff, no handoffs. John has personally settled hundreds of business finance facilities and knows which lender will deliver the best outcome for your specific situation.
Book a free 15-minute call with John or call 02 8046 3933.
50+ lenders. Decisions from 1 hour. Free broker service.
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