When funding needs change
A business line of credit you only pay for when you use it.
Draw funds up to an approved limit when needed. We explain how repayments work, the fees and whether you can reuse the funds.
What is a business line of credit?
A business line of credit is an approved limit you can draw on, repay and redraw as needed, paying interest only on the amount used. It suits businesses whose funding needs rise and fall through the year.
A line of credit behaves like a safety net for cash flow: seasonal stock, slow-paying customers, a payroll week that lands before a large invoice clears. You draw what you need, repay it, and the limit is available again.
Lenders differ on line fees, minimum repayments and whether undrawn balances cost anything. Your broker compares the panel and shows the true cost for the way you would actually use it.
Business line of credit at a glance
| Amount | $10,000 – $500,000 |
|---|---|
| Term | 6–24 months |
| Rate type | Variable |
| Indicative rates (Q3 2026) | 11.5% – 24% p.a. · see rate history |
| Security | Unsecured (guarantee may apply) |
| Repayments | Weekly or monthly minimums on the drawn balance |
| Typical speed | 1–3 business days |
| Best for | Seasonal or project-based businesses managing cash-flow timing |
| Consider something else if | A single large purchase you will repay over years |
| Tax | Interest and line fees on business use are generally deductible. |
Advantages
- Pay interest only on what you draw
- Redraw without reapplying
- Buffer against slow-paying customers
Trade-offs
- Line or facility fees may apply even when undrawn
- Variable rates can move
- Limits are reviewed periodically
How to apply for a business line of credit
- 01
Map your cash-flow pattern
When money comes in, when it goes out, and how big the gaps get.
- 02
Compare facility structures
Limit, rate, line fees, minimum repayments and redraw rules across lenders.
- 03
Approve and draw
Once approved you draw as needed; your broker stays your point of contact.
Documents lenders commonly ask for
- ID
- 6–12 months of bank statements
- Recent BAS
Estimate your repayments
- Number of repayments
- 24
- Total interest (est.)
- $13,564
- Total repaid (est.)
- $88,564
This calculator provides an estimate only and does not account for fees, charges or the specific terms a lender may offer. It is not financial advice or an offer of finance.
Key terms
What is a business line of credit?
A business line of credit is a revolving facility with a pre-approved limit. You borrow only what you need, pay interest only on the drawn balance and can redraw repaid funds without reapplying.
Line of credit vs business loan
A business loan pays a lump sum repaid on a fixed schedule; a line of credit is a flexible limit drawn as needed. Loans suit one-off purchases, lines of credit suit fluctuating working-capital needs.
Business line of credit FAQs
What rates and fees will I pay?
Costs depend on your business, the lender, amount and term. Your broker will explain how the rate is calculated, your repayments, lender fees, any broker fee, ongoing charges and the scheduled total cost. We also explain any early-payout conditions.
Will checking my options affect my credit file?
Making an initial enquiry is not the same as applying to a lender. We discuss your circumstances and likely options first. Your broker will explain any credit check that is required and obtain your consent before proceeding.