Discover the right business loan in Australia. Compare options and get the funding your business actually needs.
Your business does not have to fit a category to be funded. If yours is not listed, it is still worth asking.
Put your best foot forward by preparing strong answers to 9 questions a lender might ask you.
Put your best foot forward by preparing strong answers to 9 questions a lender might ask you.
B2B embedded finance isn’t just a tech upgrade; it’s a strategic lever to boost acquisition, conversion, and retention.
Your existing clients aren’t just customers; they’re a source of potential growth.
Business overdrafts
Keep cash flow moving with extra funds whenever your business account runs low.
About
What is a business overdraft?
With an overdraft, your business can spend more than it has in its transaction account, up to an approved limit.
It works as a revolving credit facility: you access funds as needed, repay them, and the available balance resets for next time. Plus, you only pay interest on the amount you use.
Ways to use a business overdraft
- Covering payroll, rent or bills when a payment's running tight
- Handling a repair or urgent expense right away
- Keeping stock topped up even when cash is tied up
- Bridging costs while you wait on a client's payment
Eligibility
You may be eligible for a business overdraft if your business:
- Has, or is happy to open, a business transaction account with the lender
- Has a good credit history, with existing accounts within their limits
- Has been trading for at least 12 months
- Has an active ABN or ACN and operates in Australia
Applicants must be Australian citizens or permanent residents. Criteria vary between lenders, and the lender makes the final call.
Why it works
The benefits of business overdrafts
Flexible access to funds
Draw on it whenever and for as much or as little as you need to.
Only pay interest on what you use
You’re charged interest only on the amount you've drawn, not your full approved limit.
No fixed repayment schedule
Repayments happen automatically as money flows into your business account.
No reapplying each time
Once approved, funds are ready whenever you need them without a fresh application.
Unsecured options available
Some lenders offer overdrafts without requiring collateral.
Is a business overdraft right for you?
It suits many businesses, but it's worth weighing up the trade-offs first.
Ask yourself
- Have I weighed the interest cost against the convenience of having funds on tap?
- If I needed a higher limit, would I be willing to offer security and personally guarantee it?
- If I'm drawing on this every month, would a different loan type be a better fit?
Potential drawbacks
- Interest rates are typically higher than other business loan types.
- Higher limits may require a secured overdraft and a director’s guarantee.
- Easy access can lead to over-reliance on overdraft funds.
Nothing ticked yet. Tick a question and the drawback it bears on is marked opposite.
Nothing is stored, sent or assessed. This only marks what to raise.
Business overdrafts
Key features
- Loan amount
- $10,000 – $500,000
- Term
- 2 – 5 years
- Speed
- Within 24 hours
Getting started
How to apply for a business overdraft
Step 1: Get a quote
Tell us what your business needs and get quotes from 95+ bank and non-bank lenders.
Step 2: Get approved
Confirm your quote and we'll manage the application with your lender, so you can focus on running your business.
Step 3: Get funded
Sign your finance documentation and receive funding. It is that simple.
Awarded and sorted
Awards & key milestones
Our milestones are a testament to the amazing people behind Valiant.
Our panel
95+ business lenders
in your back pocket
- All lenders
- Equipment
- Vehicle
- Working capital
- Invoice
- Trade & supply chain
- Commercial property
- Construction
Why Valiant
Just one simple application.
Let us do the heavy lifting, comparing the panel and negotiating. You get all the options side by side and choose the one that’s right for you.
Dedicated specialists by your side.
You get a personal specialist who knows which lenders suit your industry and how to structure a deal so it actually works for you.
Your credit score, protected.
Explore with no credit check. See all your options, compare them properly, and choose with confidence.
30,000+ SMEs we've worked with.
Construction, hospitality, manufacturing, healthcare. Whatever your business needs, we know how to get it funded with the right loan.
Related articles
View all
FAQs
Can I repay a business overdraft early?
Yes, you can typically repay a business overdraft early without incurring any prepayment penalties.
How do overdraft repayments work?
Overdraft repayments are automatic, with money deposited into your business transaction account instantly reducing the overdraft balance. There’s no fixed minimum repayment, but you are expected to restore the credit balance from time to time.
What happens if I exceed my overdraft limit?
If you go beyond your approved limit, you may be charged an over-limit fee. Your lender may reduce your facility or ask for immediate repayment, and your credit score could also be negatively impacted. Setting up alerts or auto-transfers can help you avoid going over the limit.
Can sole traders get a business overdraft?
Yes, sole traders can apply for a business overdraft, although eligibility will depend on factors like your trading history and turnover, personal and business credit score, and cash flow.
How much does a business overdraft cost?
The cost of a business overdraft depends on the lender and how you use it. Typical charges include interest, establishment fees, monthly/annual fees, and over-limit fees.