What is a business line of credit?
A business line of credit gives your business access to flexible funds that you can draw on as needed, up to an approved limit. You only pay interest on the amount you use, and as you repay it, the funds become available again.
A line of credit is ideal for managing cash flow fluctuations, covering short-term expenses, or taking advantage of opportunities as they arise.
Benefits of business line of credit
A business line of credit offers flexibility, control, and ongoing access to funds when your business needs it most.
Flexible access to funds
Draw down funds only when required, up to your approved limit.
No interest on unused funds
Interest is charged only on the amount drawn, not the full approved limit.
Funds can be accessed quickly without reapplying each time.
Reusable credit facility
As you repay what you’ve used, your available balance is replenished.
Improved cash flow management
Ideal for managing seasonal fluctuations or unexpected expenses.
Secured or unsecured options
Available with secured or unsecured structures depending on your business profile.
Things to consider when applying
Common uses
A business line of credit can be used for the following purposes and business needs:
Covering payroll or supplier payments
Purchasing inventory or stock
Marketing and advertising costs
Paying BAS or tax obligations
Bridging seasonal revenue fluctuations
Eligibility criteria
To qualify for a business line of credit, you generally need to meet the following requirements:
Minimum 6 months trading history with an ABN
Monthly turnover of $5,000 or more
Satisfactory business and personal credit score
Ability to make loan repayments
Able to provide recent bank statements
Business owner 18 years or older
Australian citizens or permanent residents
Business line of credit summarised
Credit limit
From $5,000 to $2,000,000+
Loan term
Ongoing facility (subject to lender review)
Repayments
Flexible repayments based on usage and lender terms
Purpose
Day-to-day cash flow, short-term expenses, and working capital
Security options
Secured or unsecured depending on lender and business profile
How to apply for a business line of credit
Applying for a business line of credit is straightforward if you follow these steps:
Step 1:
Determine Your Eligibility
Provide basic business information and consent. We'll review to see if you're eligible and calculate your borrowing capacity without affecting your credit score.
Step 2:
Finding the Right Lender
We compare lenders to find the most suitable line of credit for your business needs. We'll then submit your application to the chosen lender and monitor its progress.
Step 3:
Approval and Settlement
Let's get started