With 50+ lenders offering business overdrafts in Australia, choosing the right one is not straightforward. The best lender for your business depends on your revenue, credit profile, industry and how quickly you need funds. Use our overdraft comparison tool to see your options side by side.
This guide explains what to look for, what to compare and why going direct to a single lender is almost always the wrong approach.
The big four - Commonwealth Bank, Westpac, ANZ and NAB - offer business overdrafts with lower interest rates. However, they require strong financials, longer trading history, existing banking relationships and often property security. Decision times are measured in weeks, not hours. For most SMEs, the banks will say no. See our bank vs non-bank overdraft comparison for a full breakdown.
Specialist non-bank lenders dominate the SME overdraft market. They move faster, require less documentation, accept businesses with managed ATO debts and do not require property security under $150,000. Rates are higher but access is far easier. If you do not need property, an unsecured business overdraft is the most common path. Examples include Shift, Prospa, Moula, Banjo, Bizcap, Lumi, OnDeck and Judo Bank.
There is no single best business overdraft lender in Australia. The right one depends on your revenue, credit profile, industry and how fast you need funds. Below is how the major non-bank lenders are generally positioned. Rates across the non-bank market run from roughly 14.55% to 25% p.a. on the drawn balance, plus a line fee of 1 to 2% p.a. on the limit. Figures are indicative, vary by lender and profile, and are subject to change.
| Lender | Best suited to | Typical facility | Funding speed |
|---|---|---|---|
| Shift | Established B2B businesses wanting an ongoing line tied to trading activity | Mid to larger limits | Days |
| Prospa | Small unsecured limits, fast, simple application | Smaller to mid limits | Same day possible |
| Moula | Clean cash flow businesses, bank-statement assessed | Smaller to mid limits | 1 to 2 days |
| Banjo | Growth-stage SMEs seeking larger working capital | Mid to larger limits | Days |
| Bizcap | Harder deals, imperfect credit, urgent funding | Smaller to mid limits | Same day possible |
| Lumi | Flexible unsecured terms, rate reductions for good repayers | Smaller to mid limits | 1 to 2 days |
| OnDeck | Straightforward unsecured needs with consistent revenue | Smaller to mid limits | 1 to 2 days |
| Judo Bank | Stronger businesses wanting relationship lending and lower rates, often secured | Larger limits | Weeks |
Positioning is general guidance only and not a recommendation of any individual lender. Actual rates, limits, speed and eligibility are set by each lender and assessed case by case. OverdraftMe compares your profile across 50+ lenders and submits to the one most likely to approve you at the best terms. ACL 511092.
| Factor | What to look for |
|---|---|
| Interest rate | Annual rate on drawn funds - not the factor rate. See current overdraft rates |
| Line fee | Annual fee on the approved limit regardless of use |
| Establishment fee | One-off upfront cost - typically 0.75%–4% |
| Decision speed | Hours vs days - matters when you need funds urgently |
| Documentation required | Bank statements only vs full financials |
| Property security | Required or not - and at what threshold |
| Minimum repayments | Fixed weekly repayments vs flexible. Model yours in the repayment calculator |
| Redraw flexibility | Can you draw multiple times without reapplying |
| Early repayment | Can you pay off early without penalty |
When you apply directly to a lender, you trigger a credit enquiry on your file. If you apply to multiple lenders, each one records a separate enquiry. Multiple credit enquiries in a short period significantly damage your credit score - which then makes it harder to get approved and pushes your rates higher.
A broker submits to one lender only - the one most likely to approve you at the best rate. Your credit score stays protected. This alone is worth using a broker.
Many comparison sites and direct lenders quietly require 12 months or more of trading before they will look at an unsecured overdraft. Through our panel we work with lenders that assess from 6 months, on bank statements alone, with no tax returns required under $150,000. If your business is past the 6-month mark with consistent revenue, you have real options that the 12-month gatekeepers will not show you. See the full approval guide for every scenario.
| Pros | Cons |
|---|---|
| Interest only on what you draw | Higher rate than secured facilities |
| Revolving, redraw without reapplying | Line fee on the full limit whether used or not |
| Fast, often same-day funding | Directors usually sign a personal guarantee |
| No property needed under $150K | Best for short-term gaps, not long-term debt |
We compare 50+ lenders to find the best rate and structure for your business. Free broker service - we are paid by the lender, not you.
Get a free comparison →Major banks offer lower rates but are much harder to qualify for. For most SMEs, non-bank lenders offer a better overall deal when you factor in speed, eligibility and flexibility. A broker can compare both and recommend the right option for your specific situation.
Always compare the annual interest rate (not factor rate), the line fee, the establishment fee and any monthly service fees. The total cost of the facility is what matters - not just the headline interest rate.
Yes - provided the broker holds an Australian Credit Licence (ACL) or is a credit representative of an ACL holder. Check their registration on the ASIC Connect register before proceeding.
Everything you need to know about business overdrafts - eligibility, rates, lenders, how to apply and the Payday Super changes in 2026. Free to download.
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