A business overdraft in Australia is a revolving credit limit attached to your business: you draw what you need, repay as cash comes in, and pay interest on the drawn balance (some non-bank lenders add a line fee). Most Australian SMEs qualify on three things: monthly revenue of $6,000 or more, an Equifax score of 550 or more, and ABN age - typically 1 year or more if you own property or 2 years or more if you do not, with strong candidates considered from 6 months and every file assessed case by case. No tax returns are needed for facilities under $150,000. This guide covers who qualifies, what lenders check and what can disqualify you. For how the facility works, current rates, the lender panel and how to apply, read the complete business overdraft Australia guide.
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Standard Eligibility Criteria
| Criteria | Minimum requirement | Notes |
|---|---|---|
| Trading history (ABN age) | Typically 1 yr with property / 2 yrs without; loans from 6 months (case by case) | 12+ months preferred for larger facilities |
| Monthly revenue | $6,000/month | Consistent deposits in business account |
| ABN status | Active ABN | Must be registered and active |
| Credit score | Equifax 550+ | Some lenders go lower |
| Property security | Not required under $150K | May be required for larger facilities |
| Tax returns | Not required | Bank statements only for most products |
| Directors | Australian resident | At least one director must be Australian |
| Business structure | Any | Sole trader, partnership, company all eligible |
What Lenders Actually Look At in Your Bank Statements
The 6 months of bank statements you provide are the core of the assessment. Here is what lenders focus on:
Revenue consistency
Regular, consistent deposits signal a stable business. Irregular or lumpy deposits raise questions about revenue reliability. Consistent is more important than high.
Revenue trend
Growing revenue over the 6-month period is a strong positive signal. Declining revenue raises questions about business sustainability.
Operating expenses
Lenders assess whether your costs leave sufficient cash flow to service a new facility. High existing loan repayments reduce your borrowing capacity.
Bank account behaviour
Dishonoured payments (bounced direct debits) are a significant negative signal. A clean bank account with no dishonours for the last 3+ months is strongly preferred.
ATO payments
Regular BAS, PAYG and super payments visible in your statements show good compliance. Irregular or missing payments raise concerns.
Business Structures That Are Eligible
- Sole traders - eligible, personal credit score carries more weight
- Partnerships - all partners typically need to sign the facility
- Companies (Pty Ltd) - standard structure, director guarantee usually required
- Trusts - eligible, trustee is the borrower
- Restricted industries - who can't get an overdraft?
How to Strengthen Your Application
- Run all revenue through your business account - not personal accounts
- Avoid dishonoured payments for at least 3 months before applying
- Apply during a strong revenue period - the most recent 3 months matter most
- Formalise any ATO debt with a payment plan before applying
- Use a broker to identify which lender best suits your profile
What Can Disqualify You
- Less than 6 months trading
- Revenue below $6,000/month
- Recent bankruptcy or Part IX/X debt agreement
- Equifax score below 500 (options still exist but are limited)
- Multiple recent dishonoured payments
- Unmanaged ATO debt with no payment plan
Key point: Being disqualified by one lender does not mean you are disqualified by all. Different lenders have different appetites. A broker knows which lenders are most flexible for your specific situation.
Related: See the full 2026 Business Overdraft Factsheet for eligibility, worked examples and what documents you need.
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