What a business line of credit costs in Australia

Published business line of credit rates run from 8.36% a year secured on property to 24.95% unsecured, plus line fees on the full limit. On a $250,000 limit drawn to half for a year, our arithmetic puts the lowest published secured cost near $13,450 and unsecured near $23,060. Real rates sit above these starting figures.

A business line of credit lets you draw, repay and draw again up to a limit, paying interest only on what you use. That is the headline. The cost sits in three places: the rate on the drawn balance, a line or annual fee charged on the whole limit whether you draw or not, and a one-off establishment fee. Property security changes the first two sharply. This guide sets out what 11 lenders publish across 13 products, including five that show no rate, what the reference rates say, a worked $250,000 example secured and unsecured, and how the facility is funded.

What lenders publish for a business line of credit

Banks call it an overdraft, non-banks a line of credit, and the product is close to the same: a revolving limit on a business account. The table uses each lender's own product page, checked on 29 October 2026. Figures are indicative market data and not Ventas offers. Where a lender shows no rate, the cell says so. For a plain explanation of the product, read what a business line of credit is.

Three things stand out. First, security is the biggest price lever: Westpac's secured overdraft starts at 8.36% and its unsecured one at 13.96%, and CommBank's start at 9.00% and 15.05%. Second, five of the eleven lenders (ANZ, St.George, Bank of Queensland, Macquarie and Prospa) show no rate on the page, so a quote is the only way to see a price. Third, the fee on the limit matters as much as the rate. Prospa's weekly 0.046% is about 2.4% a year (our arithmetic: 0.046% times 52 weeks), charged on the facility whether it is drawn or not. A comparison site, money.com.au, listed unsecured overdraft starting rates from 12.99% (Beyond Bank) to 16.25% (NAB) on 2 September 2026, which sits within the range above.

What the reference rates say

Banks price an overdraft as a reference rate plus a margin set by your security and file. These are the reference rates the banks themselves publish. The margin is not shown, so your rate will differ.

The reading is simple: a reference rate of about 8% to 12%, then a margin on top. NAB says a customer margin may apply. An unarranged overdraft is a different thing: Westpac and St.George both list 15.01% for an account that goes over without approval, and CommBank lists a maximum excess drawing rate of 17.68%. Arrange a limit instead of overdrawing.

Fees on top of the rate

Read the fee line before the rate. A 1.70% line fee on a $250,000 limit is $4,250 a year, even if you never draw a dollar. The main types:

• Line or annual fee. Westpac charges 1.20% (secured) or 1.50% (unsecured) of the limit, CommBank 1.70% of the higher of limit or balance, ANZ 1.7% of the limit from $50,000, Shift $495 or $795 a year, and Prospa 0.046% a week.
• Establishment fee. Westpac unsecured $250, Great Southern Bank $495 unsecured or $750 secured plus $235 for securities administration, Bank of Queensland 0.75% of the limit with a $750 minimum. CommBank, Lumi and St.George give no amount.
• No fee on the limit. Great Southern Bank's secured overdraft shows a $0 line fee and $0 service fee, and Lumi says it has no ongoing fees to keep the line open.

Review periods differ too. Great Southern Bank's Business+ overdraft and Lumi review annually. Prospa checks eligibility every two years, and if the facility is not continued the balance is repaid over a set paydown period. Bank of Queensland's overdraft is repayable on demand, which is a feature of most overdrafts, so read the facility letter.

How property security changes the rate and the limit

Security moves the price and the ceiling. Unsecured limits are capped by the lender: $50,000 at Great Southern Bank Business+, $200,000 at ANZ GoBiz, $250,000 at Westpac and CommBank, and about $300,000 at Lumi, above which property backing may be needed. Prospa wants property ownership above $150,000 of total funding. With property, CommBank shows no top limit for secured overdrafts, Bank of Queensland lends against residential security up to 80% LVR, and the published secured starting rates sit about 5 to 6 percentage points below the unsecured ones. Read secured versus unsecured business loans for the trade-off. The cost of security is that the lender can call on your property if the business cannot repay.

For a business facility, the borrowing must be for business. A lender may take residential security for a business purpose loan with a signed declaration, but ASIC says the National Credit Act applies to credit that is predominantly for personal, domestic or household purposes, and a declaration is not conclusive if the lender knew or should have known the true purpose. Loans to buy or improve residential investment property are also regulated. This page covers business purpose only.

Who uses a line of credit, and what it is for

Owners use a standing limit to smooth seasonal cash flow, fund stock ahead of a peak, or cover customers who pay late. It suits uneven timing, not permanent funding. If the balance never falls, a term loan is usually cheaper and cleaner. Owners with equity in property often prefer a limit they can reuse to a lump sum, because they only pay interest on what is drawn and can repay without penalty at several lenders, including Lumi and Shift. Tax treatment of interest depends on your situation, so ask your accountant.

Financing a business line of credit

A line of credit is a standing limit, so lenders fund it differently to a lump sum loan. Banks write it as an overdraft on your business account, secured on property or, for smaller limits, unsecured. Non-bank lenders write a separate revolving line, repaid weekly, and ask for property once the limit passes a cap such as $150,000 or $300,000. The question each lender asks is the same: does cash come in often enough to clear the balance, and what do they hold if it does not.

Lender appetite is mixed. Banks like an existing transaction account, clean BAS and property they can hold, and will price a property-backed limit well below an unsecured one. Several unsecured products, such as Great Southern Bank's, stop at $50,000. Non-banks move faster and lend without property but charge for it. A limit that sits fully drawn for months is read as a loan the business cannot repay, and renewal at the next review becomes harder. Business purpose only: security over a home for a business facility needs a signed business purpose declaration, and borrowing for personal or household use is regulated consumer credit that this page does not cover.

Illustrative only, subject to lender assessment. A $250,000 facility, drawn to half on average for a year, using the lowest published 'from' rates above. Actual pricing is usually higher. This is our arithmetic, not an offer.

The gap is $9,612 a year, almost entirely the rate. How the facility is typically structured:

What makes a facility fundable:

• Two years of trading. Financials that match lodged BAS and bank statements.
• Cash that cycles. The balance should fall back to low levels at least once a quarter.
• Security you can offer. Equity in a property lowers the rate and lifts the limit.
• A clear use. Stock, seasonal wages or slow-paying customers, not a long-term hole.

To get a number from Ventas, send your monthly turnover, what the facility is for, the limit you want, your last two years of financials and BAS, and whether you own property and what is owing on it. Start with cashflow finance or property-backed business lending. Ventas is a broker, not a lender, and finance is subject to lender assessment and approval.

This is general information only and not financial, credit, or tax advice. Figures are indicative market data from the sources listed, not Ventas offers, and move with the market. Consider your own circumstances and speak to a professional. All finance is subject to lender assessment and approval.

This article is general information only and not financial, credit, or tax advice. Ventas Asset Lending is a finance broker, not a lender. Approvals are subject to lender assessment. Consider your own circumstances and speak to a qualified professional, including your accountant for any tax questions.