Whether you're a sole trader doing $8K a month or an established SME turning over $2M, we'll find the right overdraft for your business.
Check your eligibility →A small business overdraft is a revolving credit facility designed for Australian SMEs. It gives your business access to a pre-approved pool of funds that you can draw on whenever you need cash - to cover wages, pay suppliers, manage a slow month, or seize a growth opportunity.
Unlike a business loan, an overdraft doesn't require fixed repayments. You draw what you need, pay interest only on the drawn amount, and repay when your business receives income. The funds become available again immediately - no need to reapply.
| Business profile | Typical limit range | Security required? |
|---|---|---|
| Sole trader, $8K–$15K/month revenue | $10,000 – $30,000 | No - unsecured |
| Established SME, $15K–$50K/month | $30,000 – $100,000 | No - unsecured |
| Larger SME, $50K–$200K/month | $100,000 – $250,000 | No under $150K |
| High-revenue business, $200K+/month | $250,000 – $500,000 | May require security |
These are indicative ranges. Actual limits depend on your revenue, credit score, trading history, and the specific lender. OverdraftMe's role is to match your profile to the lender most likely to approve the highest limit at the best rate.
Not sure if you qualify? Use our eligibility checker - takes 2 minutes, no credit impact.
Banks (CBA, NAB, ANZ, Westpac) offer overdrafts but require full financials, tax returns, and often property security. Processing takes 4–6 weeks. Non-bank lenders offer the same product with bank statements only, no property, and decisions in hours.
The trade-off is rates - non-bank rates are higher. But for most small businesses, the simplicity and speed of non-bank lending is worth it. And with OverdraftMe comparing 50+ lenders, you get the best non-bank rate available for your profile.
Read our full comparison: Bank Overdraft vs Non-Bank Overdraft
Small business overdraft interest rates range from 14.55% to 25% p.a. for unsecured facilities through non-bank lenders, and 6% to 12% for secured facilities through banks. The rate you receive depends on your credit score, revenue, trading history, and whether you offer property as security.
Interest is only charged on the amount you draw - not the full limit. A $50,000 overdraft sitting unused costs only the line fee (typically 1-2% p.a. on the limit). The moment you draw $20,000, interest starts accruing on that $20,000 only. When you repay, the interest stops and the funds are available again.
All interest and fees are tax deductible. At the 25% base rate entity tax rate, an 18% interest rate effectively costs 13.5% after the deduction.
A small business overdraft is a revolving credit facility attached to your business. Think of it as a pre-approved pool of money your business can access whenever it needs to. The process works like this:
This revolving structure makes overdrafts fundamentally different from term loans. A loan gives you a fixed amount with fixed repayments. An overdraft gives you flexible access to funds that adapts to your changing cash flow needs.
Through OverdraftMe's panel of 50+ non-bank lenders, the minimum requirements are:
You do NOT need: tax returns, BAS, financial statements, business plans, property security (under $150K), or a specific industry.
Compare this to banks: 2+ years trading, full financial statements, lodged tax returns, 12 months BAS, property security for larger amounts, and a 4-6 week approval process.
Non-bank lenders typically approve 1-1.5x your average monthly revenue. Facilities range from $10,000 to $500,000.
As your business grows and you build a repayment track record with the lender, limit increases are common. Many clients start with $30K-$50K and increase to $100K+ within 12 months. Use our borrowing calculator.
Many small businesses rely on credit cards for working capital. This is almost always more expensive than an overdraft:
An overdraft eliminates surcharges entirely (you pay suppliers via bank transfer), gives you flexible draw/repay access, and the interest is fully tax deductible. Full credit card vs overdraft comparison.
Most non-bank lenders offer small business overdrafts from $10,000. Some offer facilities from $5,000 for very small businesses.
Yes. Sole traders with an active ABN are eligible. Read our sole trader guide.
The initial eligibility check through OverdraftMe does NOT affect your credit score. A credit enquiry only occurs when we formally submit your application to a lender - and we only do this once, to the best-matched lender. No credit check to enquire.
Yes, with a minimum Equifax score of 550. Bad credit may mean a smaller facility and higher rate. Bad credit guide.
Over 60% of businesses we approve were previously declined by a bank. A bank decline doesn't disqualify you - it just means you need a different lender. Bank declined guide.
OverdraftMe is operated by John Pierre Saliba, a senior finance broker with over a decade of experience in Australian financial services. John holds a Bachelor of Business and Commerce, Advanced Diploma in Financial Planning, and Diploma of Finance and Mortgage Broking Management. He is MFAA accredited, AFCA registered, and operates as a credit representative of Lend and Loan Pty Ltd (Australian Credit Licence 511092).
You deal with John directly from first enquiry to settlement - no call centres, no junior staff. Book a 15-minute call or call 02 8046 3933.
2 minutes. No credit impact. No commitment.
Get your indicative quote →