How to compare business loans on total cost
To compare business loans in Australia, calculate the total amount repayable for each option — interest rate plus establishment fee, ongoing fees and any balloon — rather than comparing advertised rates. The lowest rate is frequently not the lowest total cost once fees and term length are included.
Term length is the most commonly misread variable. Stretching a loan from 24 to 48 months lowers the monthly repayment and raises the total interest paid, sometimes substantially. A shorter term on a slightly higher rate can cost less overall while clearing the debt sooner. The table below shows both figures for each product so the trade-off is visible in one place.
Compare business loan rates, fees and repayments side by side
Set the amount and term you have in mind. Every product below is repriced instantly at the midpoint of its current market rate range, so you can see what each option costs before you apply. Where a product cannot be written at your figures, the closest available amount or term is used and flagged.
| Loan type | Indicative rate p.a. | Establishment fee | Ongoing fees | Security | Funding speed | Est. monthly | Est. total interest | Enquire |
|---|---|---|---|---|---|---|---|---|
| Unsecured Business LoanWorking capital, stock, payroll and cash flow gaps | 9.9% – 26% | 1% – 3% of the loan amount | $0 – $30 per month | No property security (director's guarantee) | 24 – 48 hours | $3,612.73 | $30,058.34 | Get a quote |
| Equipment & Machinery FinanceMachinery, fit-outs, IT and production equipment | 6.9% – 16% | $395 – $995 documentation fee | $0 – $15 per month | The asset being financed | 24 – 72 hours | $3,295.22 | $18,628.03 | Get a quote |
| Commercial Vehicle LoanUtes, vans, trucks and trailers | 6.5% – 15% | $395 – $895 plus registration costs | $0 – $15 per month | The vehicle | 24 – 72 hours | $3,262.05 | $17,433.63 | Get a quote |
| Business Line of CreditSeasonal swings and unpredictable expensesPriced at $100,000 over 24 months (product limits) | 10.5% – 24% | 0% – 2% on the approved limit | Interest on drawn funds only, $0 – $25 per month | Usually unsecured up to a set limit | 24 – 48 hours to the limit | $4,956.25 | $18,949.93 | Get a quote |
| Working Capital LoanBridging receivables and short-term shortfallsPriced at $100,000 over 24 months (product limits) | 10.9% – 28% | 1% – 3% of the loan amount | $0 – $30 per month | Typically unsecured | 24 hours | $5,062.75 | $21,506.05 | Get a quote |
| Fast Business LoanUrgent bills, tax debt and opportunity purchasesPriced at $100,000 over 18 months (product limits) | 12% – 30% | 2% – 4% of the loan amount | $0 – $30 per month | Unsecured | Same day to 24 hours | $6,524.49 | $17,440.86 | Get a quote |
Estimates only. Rate ranges are indicative of the Australian lender panel at the time of writing and repayments are calculated on the midpoint of each range, excluding establishment fees, ongoing fees and balloon amounts. Your actual offer depends on turnover, time in business, credit profile and security.
What each loan type is best for
Unsecured Business Loan
Working capital, stock, payroll and cash flow gaps.
- Rate range
- 9.9% – 26% p.a.
- Amount
- $5,000 – $500,000
- Term
- 3 – 36 months
- Early payout
- Often discounted, sometimes fixed-fee
Equipment & Machinery Finance
Machinery, fit-outs, IT and production equipment.
- Rate range
- 6.9% – 16% p.a.
- Amount
- $10,000 – $1,000,000
- Term
- 12 – 84 months
- Early payout
- Payout figure on request, balloon payable
Commercial Vehicle Loan
Utes, vans, trucks and trailers.
- Rate range
- 6.5% – 15% p.a.
- Amount
- $10,000 – $500,000
- Term
- 12 – 84 months
- Early payout
- Payout figure on request, balloon payable
Business Line of Credit
Seasonal swings and unpredictable expenses.
- Rate range
- 10.5% – 24% p.a.
- Amount
- $5,000 – $500,000
- Term
- 3 – 24 months
- Early payout
- Repay and redraw at any time
Working Capital Loan
Bridging receivables and short-term shortfalls.
- Rate range
- 10.9% – 28% p.a.
- Amount
- $5,000 – $300,000
- Term
- 3 – 24 months
- Early payout
- Often discounted for early settlement
Fast Business Loan
Urgent bills, tax debt and opportunity purchases.
- Rate range
- 12% – 30% p.a.
- Amount
- $5,000 – $250,000
- Term
- 3 – 18 months
- Early payout
- Fixed total repayable on some products
Comparison checklist before you sign
- Total repayable — the single number that makes two offers comparable.
- Establishment fee — a percentage fee on a large loan can outweigh a lower rate.
- Ongoing account or service fees charged monthly across the full term.
- Repayment frequency — daily and weekly debits affect cash flow differently to monthly.
- Early payout terms — whether interest is rebated or a fixed total is owed regardless.
- Security and guarantees — what is at risk if the business cannot repay.
- Balloon or residual on equipment and vehicle finance, payable at the end of the term.
Frequently Asked Questions
How do I compare business loans in Australia?
Compare on total cost, not the headline rate. Line up the interest rate, establishment fee, ongoing monthly fees, term and any balloon or early payout cost, then calculate the total amount repayable for each option. Two loans quoted at the same rate can differ by thousands once fees and term are included.
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What is a good interest rate for a business loan in Australia?
Secured equipment and vehicle finance typically starts around 6.5% to 7% p.a., unsecured business loans commonly run from about 9.9% to 26% p.a., and fast same-day products sit higher again. Rate is set by turnover, time in business, credit profile and whether the loan is secured.
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What fees do Australian business loans charge?
Most charge an establishment fee of roughly 1% to 3% of the loan amount, or a fixed documentation fee of $395 to $995 on asset finance. Ongoing account fees range from $0 to $30 per month. Early payout may be discounted, or fixed where a total repayable amount was agreed upfront.
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Which business loan type is cheapest?
Secured finance is cheapest because the lender holds an asset — equipment and commercial vehicle loans usually carry the lowest rates and the longest terms. Unsecured and same-day products cost more because speed and the absence of security are priced into the rate.
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Does comparing business loans affect my credit score?
No. Comparing options through AI matching is a soft enquiry and leaves your credit score unchanged. A hard enquiry is only recorded once you proceed to a formal application with a lender you have selected.
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Is a line of credit cheaper than a business loan?
It can be, because interest is charged only on the funds you actually draw. If you need the full amount immediately and will repay it steadily, a term loan is usually cheaper. If your need is intermittent, a line of credit avoids paying interest on money sitting idle.
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Compare your real offers, not just the ranges
One 5-minute form prices your business against 90+ Australian lenders and returns actual rates, fees and repayments.
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