Types of Business Loans
Equipment finance: Borrow to buy specific equipment — the equipment secures the loan. Rates from 6-15%. Terms up to 7 years. Ideal for restaurants buying kitchen equipment, trades buying vehicles/tools, or retailers buying POS systems. Working capital loans: Short-term cash flow support. Rates 8-25%. Terms 3-24 months. Use for inventory, payroll, or seasonal cashflow gaps. Commercial property loans: Buy or refinance business premises. Rates 4-8%. Terms up to 30 years. Deposit typically 20-40%.
Lender Types
Big 4 banks (CBA, ANZ, Westpac, NAB): Best rates but strict criteria. Prefer established businesses (2+ years trading) with strong financials. Conservative lending. Regional banks (Bendigo, BOQ, Suncorp): More flexible than Big 4, competitive rates. Better relationship banking. Non-bank lenders (Prospa, Funding Circle, OnDeck): Fast approval (24-48 hours), higher rates (12-35%), less documentation. Good for newer businesses or those declined by banks.
Loan Requirements
- Business age: Most banks want 2+ years trading history
- Financial statements: 2 years of accountant-prepared statements
- Bank statements: 6-12 months business banking
- Tax returns: Business and personal for 2+ years
- GST returns: If applicable (turnover over $75k)
- Asset and liability statement: Personal and business
- Business plan: For larger loans or new ventures
For Chinese Business Owners
Many Chinese Australians operate cash-heavy businesses (restaurants, retail, beauty salons). Banks prefer businesses with strong documentation and bank deposits matching reported income. If your business has significant cash transactions, work with an accountant to establish proper record-keeping systems. Consider business accounts with automated transaction categorisation. Building a relationship with a business banker helps — they understand your industry and can advocate for your application internally.
Government Support
The Australian government provides several business loan guarantee schemes. The Small Business Guarantee Scheme (SBGS) helps eligible small businesses get loans with government backing up to 80% of the loan amount. New Enterprise Incentive Scheme (NEIS) provides business training and income support while you establish your business. Export Market Development Grants (EMDG) help businesses expand internationally — relevant if you're importing from China or exporting to China.
Improving Your Chances
Maintain separate business and personal finances. Build business credit history by paying suppliers and bills on time. Consider starting with a business credit card to establish credit history. Have a clear purpose for the loan and realistic repayment projections. Offer security if possible — property, equipment, or term deposits. A good accountant and business advisor can significantly improve your application quality.