Business Loan Interest Rates in Australia 2025: Compare the Best Rates Today
Business loan interest rates in Australia have seen a shift in 2025. People running a business should have clarity on these matters. Whether you’re borrowing to grow or upgrade equipment, stay ahead. The rate you lock in can make or break your bottom line.
Not all loans are created equal. Some come with lower interest but tighter rules. Others are easier to access, but you’ll pay more in the long run. That’s why a comparison of secured and unsecured business loans can save you more than you think.
Read this to understand the kind of deal that works for your business.
Why You Should Look At The Interest Rates First?
It’s easy to focus on loan size or approval speed, but what about the interest rate? That’s where the real cost hides. Even a small jump in rate can mean thousands more over time. And in the business world, your rate depends on a lot: what kind of loan you take, what your business does, and whether or not you’re putting up security.
If you’re not paying attention to that number up front, you could end up paying for it later.
What Are the Current Business Loan Interest Rates in 2025?
Rates shift with the market and the RBA’s decisions. But here’s a ballpark look at what you might see right now:
Loan Type |
Typical Rate Range (2025) |
| Secured business loan | 7.5% to 11% p.a. |
| Unsecured business loan | 10% to 16% p.a. |
| Equipment/asset finance | 6.5% to 9% p.a. |
| Overdraft or line of credit | 8% to 14% p.a. |
Remember, these are the general figures. The primary factors that determine your actual rate are the following:
- Your credit score
- Loan amount
- Business age
- The lender’s risk assessment
What Impacts Your Interest Rate?
A few things can work in your favor or against you. Here’s what lenders look at:
- Business history: Lenders usually prefer businesses that have been around for a few years
- Annual turnover: More income generally means lower risk to the lender
- Credit rating: A clean credit file helps you qualify for better rates
- Loan Type: Unsecured business loans often cost more than secured business loans
- Collateral: If you can offer something like property or equipment, you’re more likely to get a lower rate
If you’re applying for a small business loan, you might also be offered tailored packages. Those often come with slightly higher interest unless you meet strict criteria.
How to Compare Business Loan Interest Rates the Right Way (2025 Edition)
1. Check the RBA Cash Rate Movement
Lenders often adjust rates based on the RBA’s cash rate decisions. Stay updated to know whether fixed or variable makes more sense.
2. Look Beyond Just the Interest Rate
Make sure to compare the comparison rate, which includes hidden fees.
3. Know the Average Market Ranges
Here’s what businesses are typically being offered in 2025:
- Secured Loans: 7.5% – 11% p.a.
- Unsecured Loans: 10% – 16% p.a.
- Equipment Finance: 6.5% – 9% p.a.
4. Decide Between Fixed or Variable
Fixed gives repayment certainty. Variable can save you money, or cost more if rates rise.
5. Use a Loan Calculator Before You Apply
Estimate your monthly repayments and total cost over time based on loan amount, term, and rate.
6. Check If You’re Eligible for Government Help
Some industries and regions may still have access to grant programs or incentives.
7. Consider Using a Loan Broker
Brokers compare across lenders, find exclusive deals, and help with documentation. Just make sure they’re accredited and transparent.
Final Advice Before You Apply
Not sure where to start or which loan actually fits? Talking to a broker can take the pressure off. They can compare business loan interest rates across multiple lenders, find offers you won’t always see online, and explain the fine print. Just make sure they’re licensed, and ask if they get paid by the lender. A good broker should be upfront about that.
Whichever way you go, don’t rush. Ask questions, take your time, and make sure the loan supports your business, not just today, but in the long run.