A revolving line of credit with no property or assets required as security under $150,000. Bank statements only. Decisions from 1 hour. 50+ lenders on panel. Free broker service.
Check my eligibility - 60 seconds →Written and reviewed by John Pierre Saliba, Director and Senior Finance Broker, MFAA Accredited. Last reviewed 18 September 2026.
An unsecured business overdraft is a revolving line of credit that Australian businesses can access without property or asset security. Facilities run from $10,000 to $500,000, with no property security or tax returns required under $150,000. Interest of 14.55% to 25% p.a. applies only to the balance you draw, and decisions come from 1 hour.
If your tax returns are not up to date, the same facility can be approved as a low doc business overdraft on bank statements alone.
Reviewed by John Pierre Saliba on 18 September 2026. Every application is assessed case by case against lender policy.
An unsecured overdraft is a pre-approved credit limit your business can draw down from whenever needed, repay as cash comes in, and draw again - without reapplying. Interest is charged only on the amount you have drawn, not the full limit. It is the most flexible working capital tool available to Australian SMEs.
The "unsecured" part means no property, equipment or other physical asset is required as collateral. Your business's cash flow and credit history serve as the basis for approval. You will also see the product called an unsecured OD, an unsecured overdraft facility or a revolving working capital facility - the mechanics are identical in each case.
| Unsecured | Secured | |
|---|---|---|
| Security required | None | Property or general security agreement |
| Documents | 6 months of bank statements, ABN, ID | Bank statements plus financials and property documents |
| Approval time | Decisions from 1 hour | 24 to 48 hours and longer at banks |
| Typical rate band | 14.55% to 25% p.a. (panel); wider market roughly 14% to 30% p.a. | Lower, roughly 8% to 15% p.a. |
| Limit | Up to $150,000 without security | Up to $500,000 |
| Who it suits | SMEs needing speed and no asset risk | Property owners chasing the lowest rate on larger limits |
For most SMEs needing under $150,000, an unsecured overdraft is the better choice - faster approval, no asset risk, and the rate difference is often justified by the speed and flexibility.
Two costs apply: interest on the drawn balance, and a line fee on the approved limit. Through the OverdraftMe panel, indicative interest rates are 14.55% to 25% p.a. Where you land inside that range depends mostly on your credit profile and revenue consistency.
| Equifax score | Where you typically land in the 14.55% to 25% p.a. range |
|---|---|
| 700+ | Lowest end of the range, from 14.55% p.a. |
| 600 to 699 | Middle of the range |
| 550 to 599 | Upper end of the range, up to 25% p.a. |
The line fee is charged on the full facility limit whether you draw or not - typically 1% to 2% p.a., and modelled at 0.046% per week in our calculator. It is the price of having the money on standby.
| Facility limit | Drawn (60%) | Weekly cost | Monthly cost |
|---|---|---|---|
| $50,000 | $30,000 | $126 | $549 |
| $100,000 | $60,000 | $253 | $1,099 |
| $250,000 | $150,000 | $634 | $2,748 |
Assumptions: 18% p.a. interest on the drawn balance, line fee of 0.046% per week on the full limit, balance held constant (interest-only view) - repaying the balance down adds principal on top. Model a declining-balance repayment schedule with the "Repay over term" view in our business overdraft calculator. Indicative only; your rate depends on credit assessment, business profile, revenue, trading history and lender criteria. See the full rate breakdown in business overdraft interest rates in 2026 or the market data in the Business Overdraft Index 2026.
As a guide, lenders approve unsecured overdraft limits of 1 to 1.5x your average monthly revenue. A business banking $50,000 a month may be offered $50,000 to $75,000. Facilities range from $10,000 up to $500,000; over $150,000, lenders may require financial statements or security, assessed case by case.
| Facility size | Security required | Decision time | Documents needed |
|---|---|---|---|
| $10,000 to $150,000 | None - fully unsecured | From 1 hour | 6 months of bank statements, ABN, ID |
| $150,001 to $500,000 | Financial statements or security may be required, case by case | 24 to 48 hours | Bank statements, ABN, ID, plus financials or security documents where required |
Want a number for your own revenue? Use how much can I borrow for an instant estimate.
Larger unsecured limits are sized on turnover. In September 2026 a Queensland civil earthworks company turning over more than $1 million a month was approved for a $250,000 unsecured overdraft on six months of bank statements, submitted on a Monday and funded on the Tuesday.
| Criteria | Requirement |
|---|---|
| ABN age | Typically 1+ year (property owners) or 2+ years (non-owners); strong candidates from 6 months |
| Monthly revenue | $6,000+ per month |
| Credit score | Equifax 550+ |
| Bank statements | 6 months of business bank statements |
| Property security | Not required under $150,000 |
| Tax returns | Not required under $150,000 |
| Excluded industries | Property development, mining exploration, primary agriculture |
Every application is assessed case by case against lender policy. If your ABN is younger than the guide above, a business loan is available from 6 months of trading, and strong overdraft candidates can qualify earlier. See can I get approved for every scenario, including ATO tax debt and bad credit.
| Bank overdraft | Non-bank overdraft | |
|---|---|---|
| Documents | Tax returns, financial statements, often property security | 6 months of bank statements, ABN, ID |
| Approval time | 2 to 8 weeks | Decisions from 1 hour; funding typically within 24 to 48 hours of approval |
| Unsecured availability | Limited; larger limits usually secured | Standard under $150,000 |
| Existing customer required | Usually | No |
| Typical rate | Lower where you qualify | 14.55% to 25% p.a. through the panel |
The majority of Australian SMEs cannot meet bank overdraft criteria - trading history, financial statements and property requirements rule them out. For those businesses the real comparison is not bank vs non-bank pricing; it is non-bank funding vs no funding. Full comparison: bank overdraft vs non-bank overdraft.
Through OverdraftMe's panel of 50+ lenders, these are the main unsecured overdraft and line-of-credit providers Australian SMEs end up with. Full comparison in our 2026 lender guide and on compare business overdrafts.
| Lender | Style | Typically suits |
|---|---|---|
| Shift | Revolving credit facility | Established SMEs wanting a bank-like facility without the bank paperwork |
| Prospa | Line of credit | Smaller facilities, fast decisions |
| Moula | Line of credit | Clean-credit businesses that want simple pricing |
| Lumi | Line of credit | Flexible terms, growing businesses |
| Bizcap | Cash flow finance | Harder profiles - ATO debt, credit events |
| Judo Bank | Relationship bank overdraft | Larger established SMEs that want a banker |
Lender appetite changes month to month. Which one fits you depends on your revenue pattern, credit profile and industry - that matching is exactly what the broker service does. One application, one credit enquiry.
What to have ready: 6 months of business bank statements, your ABN and a driver's licence. Under $150,000 that is the entire document list - no tax returns, BAS or financial statements.
Real facilities settled through OverdraftMe, anonymised. Every settled facility shown is unsecured.
| Business | Facility | Speed |
|---|---|---|
| Sydney e-commerce | $150,000 unsecured overdraft | Funded within 24 hours |
| WA landscaping | $55,000 unsecured overdraft | Funded within 24 hours |
| Sydney hospitality | $40,000 unsecured overdraft | Approved on bank statements only |
| NSW manufacturer | $31,000 unsecured overdraft | Funded within 24 hours |
| Melbourne retail | $25,000 unsecured overdraft | Approved on bank statements only |
Read the stories: Sydney e-commerce $150K, WA landscaping $55K, Sydney hospitality $40K, or browse all case studies and settled transactions.
"Revolving" describes the facility, not a free-for-all: repay-and-redraw always operates within your lender's minimum repayment terms.
An unsecured overdraft is a working capital tool, not free money. These are the four mistakes we see most often, and how to avoid them.
An overdraft suits short, recurring cash flow gaps - wages before invoices land, stock before the season. If a balance sits fully drawn for months, you are paying revolving-credit rates for what should be a fixed-term business loan. Match the product to the purpose.
Too small and you are back reapplying in three months; too large and the line fee on the unused limit quietly eats the benefit. Most lenders size facilities at around one month of turnover - start there and adjust for your seasonal peaks.
Because an overdraft has no loan-style fixed repayments (lender minimum repayments may apply), it is easy to let the balance drift. The businesses that use overdrafts well sweep revenue against the balance as it arrives, so interest only accrues on genuine gaps.
The same business can be offered wildly different limits and rates by different lenders. Applying to the wrong one wastes a credit enquiry and often anchors you to a worse offer. One application through a specialist broker, placed with the best-fit lender, avoids both.
No property security or tax returns under $150K · Decisions from 1 hour · Facilities $10K to $500K · ACL 511092
Check my eligibility →Model your costs first in the business overdraft calculator or call 02 8046 3933.
An unsecured overdraft is a revolving line of credit for your business that does not require property or assets as security. Approval is based on your business cash flow. You draw down when needed and repay as revenue comes in - interest is charged only on what you use, not the full limit.
Banks offer both. Larger bank overdrafts are typically secured by property or a general security agreement over the business, while some banks offer small unsecured overdrafts at lower limits. Non-bank business overdrafts under $150,000 are typically unsecured, assessed on bank statements rather than security.
Through OverdraftMe's panel of 50+ lenders, indicative unsecured overdraft rates are 14.55% to 25% p.a. on the drawn balance, plus a line fee on the approved limit. The wider Australian non-bank market spans roughly 14% to 30% p.a. Your rate depends on credit assessment, revenue and trading history.
As a guide, lenders approve 1 to 1.5x your average monthly revenue. Facilities range from $10,000 to $500,000. No property security or tax returns are required under $150,000; facilities over $150,000 may require financial statements or security, assessed case by case.
No. Property security is not required for facilities under $150,000. Your business revenue, verified through 6 months of bank statements, is the primary basis for approval.
Decisions come from 1 hour through OverdraftMe's lender panel. Funding lands same day in many cases, typically within 24 to 48 hours of approval. This compares to 2-8 weeks with a bank.
An unsecured overdraft is revolving: you draw, repay and redraw up to your limit, paying interest only on the drawn balance. An unsecured business loan is a lump sum with fixed repayments over a set term of 3 to 36 months. Overdrafts suit recurring cash flow gaps; loans suit one-off investments.
Not under $150,000. Specialist non-bank lenders require only 6 months of business bank statements, your ABN and a driver's licence. No tax returns, BAS or financial statements are needed.
A minimum Equifax score of 550 is typically required. This is fair credit - not excellent. Revenue consistency and bank statement health carry more weight than credit score alone.
A secured overdraft is backed by property or a general security agreement over the business. The security buys a lower rate - secured bank overdrafts have generally priced around 8% to 15% p.a. - and higher limits, at the cost of slower approval, heavier documentation and your asset on the line. Unsecured facilities under $150,000 skip all of that.
Often yes. A formal ATO payment plan is generally acceptable to non-bank lenders, and many of our approvals involve a managed ATO debt or a prior bank decline. Every application is assessed case by case.
Worth it when your costs are steady but your revenue timing is not. Undrawn, the facility costs only the line fee of 0.5% to 2% p.a. of the limit; interest at 14.55% to 25% p.a. applies only while drawn. If you never face timing gaps, a term loan for one-off purchases may be the cheaper tool.
Only the line fee, typically 0.5% to 2% p.a. of the approved limit. A $50,000 facility sitting fully undrawn costs roughly $250 to $1,000 a year to keep on standby, and nothing else. Interest starts only when you draw, and only on the drawn balance.
Draws above the approved limit are generally declined by the facility rather than charged at penalty rates. If you need more headroom, request a limit increase, which the lender assesses on your recent bank statements and account conduct.