Product factsheet

Business Overdraft Factsheet 2026

Eligibility, rates, costs, worked examples and what documents you need. Written by John Pierre Saliba, MFAA accredited broker.

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Written by John Pierre Saliba | MFAA Accredited | ACL 511092 | Bachelor of Business and Commerce | Last updated: May 2026

What is a business overdraft?

A business overdraft is a revolving line of credit attached to your business bank account. You draw funds when you need them, repay when cash comes in. Interest is charged only on the drawn balance, not the full limit. The facility refreshes as you repay. No reapplication needed.

Most Australian business overdrafts through our lender panel range from $10,000 to $500,000. Under $150,000, you do not need tax returns or property security. Six months of bank statements, an ABN, and a driver's licence is the full list.

Key facts

FeatureDetail
Facility size$10,000 to $500,000. Use the borrowing calculator for a personalised estimate.
Interest rate14.55% to 25% p.a. (drawn balance only)
TermRevolving, no fixed end date
Line fee1% to 2% p.a. on the approved limit
RepaymentInterest-only on drawn balance, repay principal at will
Trading history6 months minimum
Min monthly revenue$6,000 in business bank deposits
Credit scoreEquifax 550 or above
Property securityNot required under $150,000
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Who is a business overdraft for?

Eligibility at a glance

Core criteria for the OverdraftMe lender panel:

Not sure if you qualify? Check eligibility here.

How it works

  1. Step 1: Check eligibility60-second online form. No credit check. Tells you in a minute whether you are in range.
  2. Step 2: 15-minute call with JohnDiscuss your cash flow cycle, facility size, and which lender fits. One application, one credit enquiry.
  3. Step 3: Upload 6 months of bank statementsFull document list under $150K. No tax returns, no BAS, no financials.
  4. Step 4: Decision and fundingLender decision typically 1 to 4 hours. Facility sits in your account ready to draw.
Start my application → Talk to John directly

What documents you need

Worked example

$100,000 business overdraft

Facility limit: $100,000

Amount drawn: $60,000

Interest rate: 24.95% p.a. (drawn balance only)

Weekly interest cost: ~$288 on the $60K drawn

Line fee: ~$1,500/year on the $100K limit

Undrawn cost: $0 interest on the remaining $40K

See real settled deals on the results page.

Want to see numbers for your business? Get your indicative quote. Takes 2 minutes. No credit check.

Business overdraft vs other products

Need a lump sum with fixed repayments instead? See the Business Loan Factsheet for a side-by-side comparison.

For project-based draws without tying to your transaction account, see the Line of Credit Factsheet.

No property to offer as security? See the Unsecured Overdraft Factsheet.

For stock purchases or bridging invoice gaps, see the Working Capital Loan Factsheet.

Guides and resources

Available Australia-wide

OverdraftMe serves all states and territories. Speak to a broker in Sydney, Melbourne, or Brisbane.

Frequently asked questions

What is a business overdraft?

A revolving line of credit attached to your business bank account. You draw what you need, repay when cash comes in. Interest on the drawn balance only, not the limit.

How much can I borrow with a business overdraft?

$10,000 to $500,000 through the OverdraftMe lender panel. Amount depends on monthly revenue, credit score, and trading history. Use the borrowing calculator for an estimate.

What interest rate will I pay?

Rates range from 14.55% to 25% p.a. on the drawn balance. Plus a line fee of 1-2% p.a. on the total approved limit. See the full rate breakdown for 2026.

Do I need tax returns to apply?

No. Under $150,000, most lenders on the OverdraftMe panel require only 6 months of bank statements, an ABN, and a driver's licence.

Can I get a business overdraft with bad credit?

Equifax score of 550 or above is the minimum for most lenders. Some specialist lenders consider lower scores case by case. Read more about bad credit options.

How fast can I get approved?

Decisions typically come back in 1 to 4 hours during business hours. Same-day funding is available for complete morning applications.

Is a business overdraft better than a business loan?

Different tools for different jobs. An overdraft suits recurring cash flow gaps. A business loan suits one-off purchases with a known cost. See the Business Loan Factsheet for comparison.

Still have questions? Call John Pierre on 02 8046 3933 or see all FAQs.

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. Past approvals do not guarantee future results. OverdraftMe is a credit representative of Lend & Loan Pty Ltd (ACL 511092).

Free download: Business Overdraft Factsheet 2026

Same content as above, in a 2-page PDF you can email or print. Written by John Pierre Saliba.

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