18/08/2026
Business Term Loans for Australian Businesses
Business Term Loans for Australian Businesses
If your business needs a significant lump sum for growth, acquisition, or a major purchase, a business term loan is one of the most straightforward ways to get it done. This guide breaks down how term loans work in Australia, what they cost, and how to structure them so your repayments stay manageable.
What is a business term loan?
A business term loan is a financing facility where your business borrows a lump sum up front and repays it over a set loan term, typically ranging from 1 to 30 years, with an agreed interest rate and repayment schedule. Repayment terms for business loans can range from 3 months to 30 years depending on the purpose and security backing.
Unlike a business overdraft or revolving line of credit, which lets you access funds on an ongoing basis up to a credit limit, a term loan gives you a one-off amount. Once drawn, you repay it in scheduled instalments - there is no redrawing from the facility.
In Australia, business loans can be secured or unsecured. A secured loan is backed by collateral such as residential property, commercial property, business assets, or cash deposits. An unsecured loan does not require collateral from the borrower, though it usually involves a personal guarantee and comes with smaller limits.
Typical loan amounts for Australian SMEs range from around $50,000 up to several million dollars for secured facilities. Unsecured business loans generally cap at $50,000 to $500,000, depending on turnover and time in business. Business term loans can provide substantial funding for major investments when backed by strong security.
GEA Capital is a Melbourne-based finance brokerage - not a bank. We source term loans from a panel of Australian business lending providers, including major banks and non-bank lenders, to find loan options that match your business needs and financial situation.
When does a business term loan make sense?
Business term loans are designed for medium- to long-term investments rather than plugging short-term cash flow gaps. If you need capital for a planned, sizeable expenditure that will generate returns over years, a term loan is usually the right loan for the job. Term loans are typically used for purchasing equipment or funding expansion.
Buying a business or franchise - growth and acquisition finance often requires substantial upfront capital repaid over several years.
Purchasing commercial property - a property-backed term loan with a 20–30 year term keeps loan repayments low relative to the asset's value.
Fit-outs, major equipment, or large marketing campaigns - where the spending will deliver value over multiple years.
Consolidating existing business loans - rolling several facilities into one term loan can simplify repayments and may reduce the total interest you pay interest on.
Short-term or seasonal cash flow pressure is better handled by a business overdraft, invoice finance, or a smaller working capital facility. These products let you borrow money as needed rather than committing to fixed repayments on a lump sum.
Aligning the loan term with the useful life of what you are financing keeps cash flow manageable. Finance a vehicle over 5 years, not 15. Finance a commercial property over 20–30 years, not 3. Tailored finance solutions can support business growth and expansion when structured correctly.
At GEA Capital, we typically help clients map their loan structure against cash flow forecasts before they apply for a business term loan, so the repayment schedule matches actual revenue patterns.
Key features of business term loans in Australia
Most Australian term loans share a core set of loan features: a defined term, an agreed interest rate, regular business loan repayments, and a transparent fee structure.
Loan terms range from 1–5 years for working capital and equipment finance (loan terms for equipment finance can range from 1 to 7 years) up to 20–30 years for commercial property purchases.
Repayment frequency - monthly is standard, but some lenders offer fortnightly or quarterly schedules to align with your business's cash flow cycles. Fixed repayment schedules help businesses manage budgeting predictably, and predictable payments make it easier for businesses to plan their cash flow.
Principal-and-interest vs interest-only - many property-backed loans offer an interest-only period for the first 1–5 years, where you pay interest only and defer principal reduction. This eases early cash flow pressure, especially during a fixed rate period while the investment ramps up.
Balloon or residual payments - on equipment finance, some lenders allow a lump-sum residual at the end of the term to lower regular instalments throughout the loan.
Fee types - expect application or establishment fees (often 1–3% of the loan amount), ongoing fees or monthly fees for account-keeping, and break costs or early repayment penalties on fixed-rate loans. Comparing the total cost of borrowing means evaluating interest rates and fees together, not just the headline rate.
Tailored finance solutions offer flexible repayment options, including the ability to make additional repayments on variable-rate facilities without penalty.
Interest rates: fixed or variable for your business term loan?
The actual interest rate on your business term loan is one of the biggest drivers of total cost. Businesses can choose between fixed or variable interest rates, and the right choice depends on your appetite for risk, your cash flow certainty, and market conditions.
A fixed interest rate locks your rate for a set period - commonly 1–5 years, sometimes longer on property-backed loans. You get fixed repayments, making budgeting straightforward. The trade-off: break costs apply if you repay early or refinance, and you will not benefit if market rates fall. Interest rates on business loans can be fixed or variable, with loan terms that can range from 1 to 30 years.
A variable interest rate moves with the market - typically referencing the RBA cash rate or the BBSW. Your repayments can rise or fall. This suits businesses comfortable with some uncertainty and wanting flexibility to make extra repayments without penalties. As of mid-2026, the RBA cash rate sits near 4.10–4.35%, keeping variable business loan rates elevated compared to historical averages.
A split loan structure lets you fix part of the loan and leave the rest on a variable rate, balancing certainty with flexibility. This is becoming more common across Australian lenders.
Key factors affecting your rate: security type (residential property yields less interest cost than unsecured), loan-to-value ratio, business trading history, industry risk, and the credit profile of directors. A business with strong cash flow and property security may attract rates around 7–9%, while an unsecured loan could sit at 12–20% or more.
GEA Capital compares fixed or variable options across our lender panel to help you minimise rate and fee costs. We look beyond the headline rate to assess the total cost, including ongoing fees and potential break costs.
Secured vs unsecured business term loans
The type of security you can offer has a major impact on how much your business can borrow, the interest rate you receive, and how quickly your loan application is approved.
A secured loan is backed by collateral - residential property, commercial property, equipment, vehicles, or even rural property and cash deposits. Secured loans require collateral such as property or equipment to back the loan. Because the lender can recover the asset if you default, you benefit from lower rates, a larger maximum loan amount, and longer terms.
Unsecured business loans have no specific physical assets pledged. The lender relies on business cash flow, the business's financial health, and the strength of the directors' financial position. Unsecured loans do not require collateral from the borrower, but a personal guarantee may be required for unsecured loans.
Secured loan advantages: interest rates from approximately 7.49% p.a., up to 90% loan-to-value ratio available for tailored solutions, and terms stretching to 30 years for property.
Unsecured loan trade-offs: faster application process and fewer valuation steps, but smaller borrowing limits, shorter terms, and rates often starting from 12–15% and climbing to 35%+ for higher-risk profiles. Cash flow lending options include both secured and unsecured loans.
Lenders assess credit scores to determine loan eligibility. Bad credit can hinder business loan approval chances, but some lenders offer loans despite bad credit histories. Unsecured loans are available for businesses with bad credit through specialist and complex lending providers.
Many Australian lenders require personal guarantees from directors even on secured facilities. This means the director's personal circumstances and financial health are assessed alongside the business.
GEA Capital structures both secured and unsecured solutions, including blended arrangements - for example, partly providing security via property with a smaller unsecured top-up to cover the full loan purpose.
How much can your business borrow with a term loan?
Your borrowing power depends on cash flow, existing debts, security value, and the strength of your business plan.
Lenders assess serviceability using historical financials - typically the last two years of tax returns, profit-and-loss statements, and BAS - plus cash flow forecasts. They want to see that your business can cover all the repayments plus a buffer if rates rise or revenue dips.
For secured lending, LVR determines the approved limit. Examples: up to 70% of commercial property value, or up to 80% of residential property value for some business loans. Up to 90% loan-to-value ratio is available for tailored solutions in certain cases.
For unsecured term loans, maximum loan amounts are often capped between $50,000 and $500,000, depending on turnover and time in business. Some lender products, like QuickBiz loans, let you borrow between $5,000 and $250,000.
Successful repayment of a business loan can help build a commercial credit score, improving your borrowing position for future facilities. Whether you are a sole trader or a larger company, consistent repayment history matters.
Prepare realistic forecasts rather than best-case scenarios. Over-borrowing creates cash flow stress and risks the security funds or assets backing the loan.
GEA Capital can provide an indicative borrowing range early in the process by reviewing your financial statements and proposed security - before a full loan application is lodged.
Using business term loans alongside other finance options
A business term loan often works best as part of a broader finance strategy, combined with other lending options tailored to different business purposes.
Equipment finance may be more efficient than a general term loan for vehicles, machinery, or technology. Equipment finance includes hire purchase agreements and chattel mortgages. A chattel mortgage allows businesses to own assets from the start and can also be used to buy vehicles outright. Hire purchase agreements let businesses pay for assets - including vehicles - in installments. Equipment finance can cover up to 100% of the asset's cost, with loan terms from 1 to 7 years. Up to 90% loan-to-value ratio is available for vehicle finance, and vehicle finance can be secured against the vehicle itself. Finance leases allow businesses to use vehicles without ownership if that suits your situation.
Invoice finance allows borrowing against unpaid invoices, unlocking cash flow tied up in receivables. This complements a long-term loan used for expansion by smoothing out revenue timing.
A line of credit is a revolving loan for quick access to funds, covering day-to-day cash flow gaps without committing to fixed repayments. Similarly, overdrafts provide funds even when business accounts are empty - useful for unexpected expenses.
Trade finance helps manage cash flow between suppliers and customers, while a bridge loan is a temporary financing solution for short-term needs such as settlement gaps between property transactions. Government-backed loans can extend repayment terms and reduce lender risk for eligible businesses.
Example: a Melbourne-based trade business might use a term loan to buy a warehouse, equipment finance for its fleet, and a small business overdraft for seasonal stock purchases. Each facility is structured to match its purpose - the business owns the warehouse outright, pays less interest on secured debt, and only pays for the overdraft when it draws on it.
GEA Capital packages multiple facilities from different lenders - including other lenders outside the major banks - into a coherent overall strategy so existing customers and new clients alike get the right loan type for each need.
What you need to apply for a business term loan
Solid preparation speeds up the application process and can help secure better terms from any financial institution.
Key documents: recent financial statements (usually the last 2 years), BAS statements, up-to-date management accounts, personal tax returns for directors, and identification. Lenders offering credit provided under an Australian credit licence (Australian credit licence no. details appear in their product disclosure statement and target market determinations) will assess these thoroughly.
A clear business plan: outlining loan purpose, projected cash flow, key risks, and how the loan will be repaid. This is especially important if you are covering start up costs or if the business owns limited assets. Professional advice from an accountant can strengthen your application.
Valuations and quotes: property-backed lending usually requires recent valuations; equipment finance may need supplier quotes or invoices.
Credit history: lenders review credit for both the business and directors. Businesses with past issues may still qualify through specialist lenders - the credit provided may carry more interest but keeps finance options open.
GEA Capital helps clients assemble documentation, present their case clearly, and manage communication with lenders so you can focus on running your business.
How GEA Capital helps you secure the right business term loan
As a Melbourne-based, family-owned finance brokerage, GEA Capital works with Australian businesses nationwide to structure and source suitable business term loans, flexible loan facilities, and tailored lending solutions.
We start with a conversation - understanding your goals, time frames, and current cash flow position before recommending any specific product. Whether you need to business loan apply for a major acquisition or simply explore your lending options, the first step is the same.
We compare offers across our panel of banks and non-bank lenders, evaluating the interest rate, ongoing fees, loan term, flexible security options, and features like fixed or variable interest and interest-only periods. We look at the total cost, not just the headline rate.
For businesses with non-perfect credit, complex structures, or limited security, we access specialist business lending providers who assess each case on its merits rather than relying solely on automated scoring.
We also review existing business loans and arrange refinancing where it makes sense - to reduce interest costs, improve cash flow, or consolidate multiple facilities into a single, manageable repayment.
If you are ready to explore your finance options - including business term loans, equipment finance, and cash flow solutions - contact GEA Capital for a tailored assessment. We will give you an honest view of what is achievable, help you prepare a strong application, and negotiate the best terms available from our lender panel.
Business Term Loans for Australian Businesses
If your business needs a significant lump sum for growth, acquisition, or a major purchase, a business term loan is one of the most straightforward ways to get it done. This guide breaks down how term loans work in Australia, what they cost, and how to structure them so your repayments stay manageable.
What is a business term loan?
A business term loan is a financing facility where your business borrows a lump sum up front and repays it over a set loan term, typically ranging from 1 to 30 years, with an agreed interest rate and repayment schedule. Repayment terms for business loans can range from 3 months to 30 years depending on the purpose and security backing.
Unlike a business overdraft or revolving line of credit, which lets you access funds on an ongoing basis up to a credit limit, a term loan gives you a one-off amount. Once drawn, you repay it in scheduled instalments - there is no redrawing from the facility.
In Australia, business loans can be secured or unsecured. A secured loan is backed by collateral such as residential property, commercial property, business assets, or cash deposits. An unsecured loan does not require collateral from the borrower, though it usually involves a personal guarantee and comes with smaller limits.
Typical loan amounts for Australian SMEs range from around $50,000 up to several million dollars for secured facilities. Unsecured business loans generally cap at $50,000 to $500,000, depending on turnover and time in business. Business term loans can provide substantial funding for major investments when backed by strong security.
GEA Capital is a Melbourne-based finance brokerage - not a bank. We source term loans from a panel of Australian business lending providers, including major banks and non-bank lenders, to find loan options that match your business needs and financial situation.
When does a business term loan make sense?
Business term loans are designed for medium- to long-term investments rather than plugging short-term cash flow gaps. If you need capital for a planned, sizeable expenditure that will generate returns over years, a term loan is usually the right loan for the job. Term loans are typically used for purchasing equipment or funding expansion.
Buying a business or franchise - growth and acquisition finance often requires substantial upfront capital repaid over several years.
Purchasing commercial property - a property-backed term loan with a 20–30 year term keeps loan repayments low relative to the asset's value.
Fit-outs, major equipment, or large marketing campaigns - where the spending will deliver value over multiple years.
Consolidating existing business loans - rolling several facilities into one term loan can simplify repayments and may reduce the total interest you pay interest on.
Short-term or seasonal cash flow pressure is better handled by a business overdraft, invoice finance, or a smaller working capital facility. These products let you borrow money as needed rather than committing to fixed repayments on a lump sum.
Aligning the loan term with the useful life of what you are financing keeps cash flow manageable. Finance a vehicle over 5 years, not 15. Finance a commercial property over 20–30 years, not 3. Tailored finance solutions can support business growth and expansion when structured correctly.
At GEA Capital, we typically help clients map their loan structure against cash flow forecasts before they apply for a business term loan, so the repayment schedule matches actual revenue patterns.
Key features of business term loans in Australia
Most Australian term loans share a core set of loan features: a defined term, an agreed interest rate, regular business loan repayments, and a transparent fee structure.
Loan terms range from 1–5 years for working capital and equipment finance (loan terms for equipment finance can range from 1 to 7 years) up to 20–30 years for commercial property purchases.
Repayment frequency - monthly is standard, but some lenders offer fortnightly or quarterly schedules to align with your business's cash flow cycles. Fixed repayment schedules help businesses manage budgeting predictably, and predictable payments make it easier for businesses to plan their cash flow.
Principal-and-interest vs interest-only - many property-backed loans offer an interest-only period for the first 1–5 years, where you pay interest only and defer principal reduction. This eases early cash flow pressure, especially during a fixed rate period while the investment ramps up.
Balloon or residual payments - on equipment finance, some lenders allow a lump-sum residual at the end of the term to lower regular instalments throughout the loan.
Fee types - expect application or establishment fees (often 1–3% of the loan amount), ongoing fees or monthly fees for account-keeping, and break costs or early repayment penalties on fixed-rate loans. Comparing the total cost of borrowing means evaluating interest rates and fees together, not just the headline rate.
Tailored finance solutions offer flexible repayment options, including the ability to make additional repayments on variable-rate facilities without penalty.
Interest rates: fixed or variable for your business term loan?
The actual interest rate on your business term loan is one of the biggest drivers of total cost. Businesses can choose between fixed or variable interest rates, and the right choice depends on your appetite for risk, your cash flow certainty, and market conditions.
A fixed interest rate locks your rate for a set period - commonly 1–5 years, sometimes longer on property-backed loans. You get fixed repayments, making budgeting straightforward. The trade-off: break costs apply if you repay early or refinance, and you will not benefit if market rates fall. Interest rates on business loans can be fixed or variable, with loan terms that can range from 1 to 30 years.
A variable interest rate moves with the market - typically referencing the RBA cash rate or the BBSW. Your repayments can rise or fall. This suits businesses comfortable with some uncertainty and wanting flexibility to make extra repayments without penalties. As of mid-2026, the RBA cash rate sits near 4.10–4.35%, keeping variable business loan rates elevated compared to historical averages.
A split loan structure lets you fix part of the loan and leave the rest on a variable rate, balancing certainty with flexibility. This is becoming more common across Australian lenders.
Key factors affecting your rate: security type (residential property yields less interest cost than unsecured), loan-to-value ratio, business trading history, industry risk, and the credit profile of directors. A business with strong cash flow and property security may attract rates around 7–9%, while an unsecured loan could sit at 12–20% or more.
GEA Capital compares fixed or variable options across our lender panel to help you minimise rate and fee costs. We look beyond the headline rate to assess the total cost, including ongoing fees and potential break costs.
Secured vs unsecured business term loans
The type of security you can offer has a major impact on how much your business can borrow, the interest rate you receive, and how quickly your loan application is approved.
A secured loan is backed by collateral - residential property, commercial property, equipment, vehicles, or even rural property and cash deposits. Secured loans require collateral such as property or equipment to back the loan. Because the lender can recover the asset if you default, you benefit from lower rates, a larger maximum loan amount, and longer terms.
Unsecured business loans have no specific physical assets pledged. The lender relies on business cash flow, the business's financial health, and the strength of the directors' financial position. Unsecured loans do not require collateral from the borrower, but a personal guarantee may be required for unsecured loans.
Secured loan advantages: interest rates from approximately 7.49% p.a., up to 90% loan-to-value ratio available for tailored solutions, and terms stretching to 30 years for property.
Unsecured loan trade-offs: faster application process and fewer valuation steps, but smaller borrowing limits, shorter terms, and rates often starting from 12–15% and climbing to 35%+ for higher-risk profiles. Cash flow lending options include both secured and unsecured loans.
Lenders assess credit scores to determine loan eligibility. Bad credit can hinder business loan approval chances, but some lenders offer loans despite bad credit histories. Unsecured loans are available for businesses with bad credit through specialist and complex lending providers.
Many Australian lenders require personal guarantees from directors even on secured facilities. This means the director's personal circumstances and financial health are assessed alongside the business.
GEA Capital structures both secured and unsecured solutions, including blended arrangements - for example, partly providing security via property with a smaller unsecured top-up to cover the full loan purpose.
How much can your business borrow with a term loan?
Your borrowing power depends on cash flow, existing debts, security value, and the strength of your business plan.
Lenders assess serviceability using historical financials - typically the last two years of tax returns, profit-and-loss statements, and BAS - plus cash flow forecasts. They want to see that your business can cover all the repayments plus a buffer if rates rise or revenue dips.
For secured lending, LVR determines the approved limit. Examples: up to 70% of commercial property value, or up to 80% of residential property value for some business loans. Up to 90% loan-to-value ratio is available for tailored solutions in certain cases.
For unsecured term loans, maximum loan amounts are often capped between $50,000 and $500,000, depending on turnover and time in business. Some lender products, like QuickBiz loans, let you borrow between $5,000 and $250,000.
Successful repayment of a business loan can help build a commercial credit score, improving your borrowing position for future facilities. Whether you are a sole trader or a larger company, consistent repayment history matters.
Prepare realistic forecasts rather than best-case scenarios. Over-borrowing creates cash flow stress and risks the security funds or assets backing the loan.
GEA Capital can provide an indicative borrowing range early in the process by reviewing your financial statements and proposed security - before a full loan application is lodged.
Using business term loans alongside other finance options
A business term loan often works best as part of a broader finance strategy, combined with other lending options tailored to different business purposes.
Equipment finance may be more efficient than a general term loan for vehicles, machinery, or technology. Equipment finance includes hire purchase agreements and chattel mortgages. A chattel mortgage allows businesses to own assets from the start and can also be used to buy vehicles outright. Hire purchase agreements let businesses pay for assets - including vehicles - in installments. Equipment finance can cover up to 100% of the asset's cost, with loan terms from 1 to 7 years. Up to 90% loan-to-value ratio is available for vehicle finance, and vehicle finance can be secured against the vehicle itself. Finance leases allow businesses to use vehicles without ownership if that suits your situation.
Invoice finance allows borrowing against unpaid invoices, unlocking cash flow tied up in receivables. This complements a long-term loan used for expansion by smoothing out revenue timing.
A line of credit is a revolving loan for quick access to funds, covering day-to-day cash flow gaps without committing to fixed repayments. Similarly, overdrafts provide funds even when business accounts are empty - useful for unexpected expenses.
Trade finance helps manage cash flow between suppliers and customers, while a bridge loan is a temporary financing solution for short-term needs such as settlement gaps between property transactions. Government-backed loans can extend repayment terms and reduce lender risk for eligible businesses.
Example: a Melbourne-based trade business might use a term loan to buy a warehouse, equipment finance for its fleet, and a small business overdraft for seasonal stock purchases. Each facility is structured to match its purpose - the business owns the warehouse outright, pays less interest on secured debt, and only pays for the overdraft when it draws on it.
GEA Capital packages multiple facilities from different lenders - including other lenders outside the major banks - into a coherent overall strategy so existing customers and new clients alike get the right loan type for each need.
What you need to apply for a business term loan
Solid preparation speeds up the application process and can help secure better terms from any financial institution.
Key documents: recent financial statements (usually the last 2 years), BAS statements, up-to-date management accounts, personal tax returns for directors, and identification. Lenders offering credit provided under an Australian credit licence (Australian credit licence no. details appear in their product disclosure statement and target market determinations) will assess these thoroughly.
A clear business plan: outlining loan purpose, projected cash flow, key risks, and how the loan will be repaid. This is especially important if you are covering start up costs or if the business owns limited assets. Professional advice from an accountant can strengthen your application.
Valuations and quotes: property-backed lending usually requires recent valuations; equipment finance may need supplier quotes or invoices.
Credit history: lenders review credit for both the business and directors. Businesses with past issues may still qualify through specialist lenders - the credit provided may carry more interest but keeps finance options open.
GEA Capital helps clients assemble documentation, present their case clearly, and manage communication with lenders so you can focus on running your business.
How GEA Capital helps you secure the right business term loan
As a Melbourne-based, family-owned finance brokerage, GEA Capital works with Australian businesses nationwide to structure and source suitable business term loans, flexible loan facilities, and tailored lending solutions.
We start with a conversation - understanding your goals, time frames, and current cash flow position before recommending any specific product. Whether you need to business loan apply for a major acquisition or simply explore your lending options, the first step is the same.
We compare offers across our panel of banks and non-bank lenders, evaluating the interest rate, ongoing fees, loan term, flexible security options, and features like fixed or variable interest and interest-only periods. We look at the total cost, not just the headline rate.
For businesses with non-perfect credit, complex structures, or limited security, we access specialist business lending providers who assess each case on its merits rather than relying solely on automated scoring.
We also review existing business loans and arrange refinancing where it makes sense - to reduce interest costs, improve cash flow, or consolidate multiple facilities into a single, manageable repayment.
If you are ready to explore your finance options - including business term loans, equipment finance, and cash flow solutions - contact GEA Capital for a tailored assessment. We will give you an honest view of what is achievable, help you prepare a strong application, and negotiate the best terms available from our lender panel.
Our Solutions
Gabriel Anagnostakis is an authorised credit representative (No. 562173) of R1 Investments Pty Ltd, trading as GEA Capital (The Trustee for GEA Family Trust, ABN: 76 533 017 761). Australian Credit licence Number 422284 and is authorised to provide credit related activities.
Our Solutions
Gabriel Anagnostakis is an authorised credit representative (No. 562173) of R1 Investments Pty Ltd, trading as GEA Capital (The Trustee for GEA Family Trust, ABN: 76 533 017 761). Australian Credit licence Number 422284 and is authorised to provide credit related activities.
Our Solutions
Gabriel Anagnostakis is an authorised credit representative (No. 562173) of R1 Investments Pty Ltd, trading as GEA Capital (The Trustee for GEA Family Trust, ABN: 76 533 017 761). Australian Credit licence Number 422284 and is authorised to provide credit related activities.
Our Solutions
Gabriel Anagnostakis is an authorised credit representative (No. 562173) of R1 Investments Pty Ltd, trading as GEA Capital (The Trustee for GEA Family Trust, ABN: 76 533 017 761). Australian Credit licence Number 422284 and is authorised to provide credit related activities.