Business Finance · 8 min read
Non-bank business lenders in Australia: a 2026 guide
The Australian non-bank lending market has grown significantly. Here's how it works, who the key players are, and how to choose the right lender for your business.
Australia's big four banks have historically dominated business lending. But over the past decade, a new generation of specialist non-bank lenders has emerged, offering faster approvals, more flexible criteria, and products specifically designed for the cash flow realities of Australian SMEs.
What is a non-bank lender?
A non-bank lender is a financial institution that provides loans but is not an authorised deposit-taking institution (ADI). Non-bank lenders fund their loans through institutional investors and capital markets rather than retail deposits. This means their cost of capital can be higher than banks — reflected in interest rates — but their speed, flexibility, and approval rates are significantly better for SMEs.
The major non-bank SME lenders in Australia
Prospa
Unsecured loans, lines of creditOne of Australia's largest non-bank SME lenders. Unsecured loans up to $300,000. Known for fast online applications and same-day decisions. Rates from 9.9% p.a. ASX-listed.
OnDeck
Term loans, lines of creditUS-headquartered with significant Australian presence. Term loans and lines of credit in the $10K–$250K range with same-day decision capability.
Lumi
Unsecured loans, flexible criteriaAustralian-founded lender. Unsecured loans up to $500,000. Known for willingness to consider a broader range of business profiles, including some adverse credit situations.
Moula
Data-driven, competitive ratesTechnology-driven lender, now under NAB partnership. Data-driven assessment. Competitive rates for businesses with strong bank statement profiles.
Capify
Merchant cash advancesOffers merchant cash advances and business loans. Well-suited to retail and hospitality with high card transaction volumes. Repayments tied to daily card settlements.
How to choose the right non-bank lender
- →Loan amount: Not all lenders cover the full $10K–$500K range. Check maximum and minimum before applying.
- →Approval speed: If you need funds urgently, focus on lenders with same-day decision capability.
- →Credit history: Some lenders are more conservative. Adverse credit history needs a flexible assessment lender.
- →Industry: Some lenders specialise in specific industries and better understand your revenue patterns.
Non-bank vs bank: the honest comparison
| Factor | Bank | Non-bank |
|---|---|---|
| Decision speed | 5–15 business days | Same day — 48 hrs |
| Documentation | Tax returns, financials, BAS | Bank statements only |
| Collateral | Often required | Not required |
| SME approval rate | ~50% | ~78% |
| Interest rates | 6–12% p.a. | 12–35% p.a. |
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