Business loan rates and funding costs for SMEs
Compare business loan rates, total repayment costs and funding options for Australian SMEs before applying online.
Am I eligible?
You probably are, you just need:
- An active ABN or ACN
- 6+ months in business
- $5,000+ in monthly revenue
Understand business loan rates before applying
Business loan rates in Australia vary by lender, loan type, business profile, amount and term. There is no single rate that applies to all businesses because each application is assessed on its own circumstances. Businesses comparing SME funding can start with the SME loan guide and use our business loan calculator to estimate repayments at different rates.
What are business loan rates in Australia?
SimplyFunded Australia helps Australian SMEs understand business loan rates before applying for funding. There is no single business loan rate for every business: the rate can depend on the loan type, amount, term, revenue, trading history, account conduct and repayment capacity.
Unsecured business loan rates may be higher than secured rates because the lender is not relying on property or an asset as collateral. A business should compare the interest rate with establishment fees, ongoing charges, payment frequency, loan terms and total repayment rather than choosing based on the headline rate alone.
Use the business loan calculator to test realistic amounts and terms, then review the business loan requirements before submitting an application. A rate can only be confirmed through assessment and is not guaranteed by a general website estimate.
How business loan rates are calculated
Interest rates on unsecured business loans are typically higher than secured rates because the lender takes on more risk without asset collateral. The rate reflects the lender's assessment of the business ability to repay based on revenue, trading history and cash flow.
The rate you are offered depends on factors such as the business trading history, monthly revenue, industry, loan amount, repayment term and recent account conduct. A business with strong, consistent revenue and clean account behaviour may qualify for a more competitive rate than a business with uneven income or recent credit pressure.
Always compare the total cost of the loan, not just the interest rate. Use our business loan comparison tool to see how different loan types and rates stack up. A lower rate with higher fees may cost more than a slightly higher rate with no fees depending on the loan amount and term.
What affects your business loan rate
Trading history: a longer, consistent trading record can support a stronger rate.
Monthly revenue: higher revenue may improve the rate because the repayment risk is lower.
Account conduct: recent dishonours or arrears can affect the rate offered.
Loan amount: smaller loans may carry higher effective rates because fixed costs are spread over less principal.
Loan term: longer terms may have higher total interest even if the monthly payment is lower.
Industry risk: some industries are considered higher risk, which can affect the rate.
Ready to check your rate?
Rates depend on lender assessment. Start an application to find out what rate may apply to your business.
Related funding options
You can also review business loan FAQs or speak with the team through the contact page.
Frequently Asked Questions
The rate depends on the business profile, requested amount, term, repayment structure, risk information and the final assessment.