Two businesses apply for the same $100,000 facility in the same week. One is offered 14.55% p.a., the other 24%. Nothing about that is random: non-bank lenders price every application against a short list of measurable factors. Here are the eight levers that determine your business loan or overdraft rate in Australia, roughly in order of weight, and which ones you can actually move.
| Lever | What lenders look at | Can you move it? |
|---|---|---|
| 1. Director credit score | Equifax score bands: 700+, 600 to 699, 550 to 599, under 550 | Slowly |
| 2. Trading history | Months of ABN and GST registration: 6, 12, 24, 36 month thresholds | Only with time |
| 3. Revenue level and consistency | Monthly turnover and how steady it is | Partly |
| 4. Bank statement conduct | Dishonours, overdrawn days, gambling, cash flow pattern | Yes, in 90 days |
| 5. Property ownership | Owner vs non-owner, even when no security is taken | Rarely quickly |
| 6. Existing short term lenders | How many facilities you already stack | Yes |
| 7. Industry | Loadings and restrictions for higher risk sectors | No |
| 8. ATO position | Clear, on a payment plan, or in arrears | Yes |
Most non-bank lenders set their pricing tiers off the director's Equifax score. On the OverdraftMe panel the pattern is consistent: 700+ opens the sharpest tiers from 14.55% p.a., 600 to 699 sits mid range, 550 to 599 prices toward 25% p.a., and under 550 moves you into specialist, case by case territory. A 100 point score difference can be worth more than any amount of negotiating.
Rate tiers and product access step down at specific ages of your ABN and GST registration: 6 months (minimum for most loans), 12 months (wider panel, better tiers), 24 months (most overdraft products and premium tiers), 36 months (the full market). If you are near a threshold, sometimes waiting eight weeks to apply is the cheapest financing decision you will ever make. Your ABN age is verified automatically against the Australian Business Register when you apply through our site.
Minimums start around $6,000 a month, but the rate conversation really changes with scale and steadiness: $50,000 a month of consistent deposits prices better than $80,000 that swings wildly. Lenders read six months of deposits, not your best month.
Dishonoured payments in the last three to six months are the single fastest way to fall out of prime tiers, and with stricter lenders they are a decline. Overdrawn days, heavy gambling transactions and same day in-out transfers all read as risk. The fix costs nothing: run ninety days of clean statements before you apply.
Even on fully unsecured facilities, many lenders price property owners several percentage points lower and approve higher limits, because ownership signals stability. Non-property owners are absolutely fundable, typically at higher tiers and lower caps. This is one reason two otherwise identical businesses see different quotes. We explain the economics in why unsecured loans cost more than bank loans.
Every short term facility already running shows up in your statements as daily or weekly debits, and lenders count them. One existing lender narrows the panel; two or more pushes you toward specialist pricing or consolidation territory. If you are stacked, refinancing into one facility often cuts both the rate and the repayment load.
Construction, transport and hospitality commonly attract rate loadings; some sectors are restricted to property owners with certain lenders; a small list is excluded outright. You cannot change your industry, but the right lender match matters more here than anywhere: the spread between the best and worst lender for a tradie can be enormous.
Clear is best. A formal payment plan is accepted by many lenders with modest rate impact, and several will refinance ATO debt into the new facility. Unmanaged arrears are what push you into the expensive end. If you have tax debt, get it onto a plan before applying: it changes both the rate and the panel available to you. More in our ATO tax debt guide.
Then see where you land: current verified pricing is in our business overdraft interest rates table, and the business overdraft calculator turns any quoted rate into a weekly cost. If you have been quoted a factor rate instead of an interest rate, convert it with the factor rate to APR calculator before comparing.
Or skip the guesswork: when you enquire with OverdraftMe, your profile is matched against the eligibility rules of 50+ lenders automatically, and John tells you honestly where you sit and which lever would move your rate most. Free, no credit check to get a quote.
On the non-bank panel, a director Equifax score of 700+ typically lands the sharpest tiers from 14.55% p.a. Scores of 600 to 699 sit mid range, 550 to 599 price toward the upper end near 25% p.a., and below 550 is specialist, case by case territory.
Usually yes. Many lenders price property owners several percentage points lower and offer higher limits even when no security is taken. Non-property owners remain fundable, just at higher tiers.
Heavily. Dishonours in the last three to six months are one of the fastest ways to move from a prime tier to a specialist tier, or to a decline with stricter lenders. Six clean months of statements is one of the cheapest rate improvements available.
No. On a formal payment plan it is accepted by many lenders with modest impact; unmanaged arrears push you to specialist pricing. Several lenders will also refinance ATO debt into the facility.
Within 90 days: clean statements with zero dishonours, ATO debt on a plan, no stacking, GST registration sorted. Trading history thresholds at 12 and 24 months re-price you automatically as you cross them.
Everything you need to know - eligibility, rates, lenders and Payday Super 2026.
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