Business line of credit
A business line of credit that flexes with your cashflow
Access funds when you need them, repay when you can, draw again. Flexible revolving credit for Australian businesses.
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2 minutes · Soft check only · Free
Best fit: $10K+ monthly revenue · 12+ months trading · Active ABN · Loans from $10K
After you submit:a broker calls within 2 hours — often from a mobile or private number, so please pick up. They’ll send a 30-second privacy form to e-sign, then ask for your last 6 months of business bank statements. Have those ready and you could have quotes today.
Overview
Why credit businesses choose Avoir
A business line of credit is one of the most flexible financing tools available to Australian SMEs. Here's how a business line of credit works: unlike a term loan where you receive a lump sum and repay it over a fixed period, a line of credit gives you access to an approved credit limit that you can draw from, repay, and draw again — only paying interest on what you actually use. For a small business with variable cash flow, seasonal revenue, or unpredictable working capital needs, a line of credit can be more efficient than a standard term loan.
Avoir connects Australian businesses to specialist lenders offering revolving credit facilities and unsecured lines of credit. Whether you need a facility to smooth cash flow between invoices, fund opportunistic purchases, or maintain a buffer for unexpected costs, our network includes lenders who can move quickly and assess your application based on your current trading.
Key features
Pay interest only on what you use
Unlike a term loan, you only pay interest on the funds you have drawn. An undrawn credit limit costs you nothing until you use it.
Draw, repay, redraw
Revolving access means as you repay drawn amounts, those funds become available again. The facility works around your cash flow, not a fixed schedule.
No collateral required
Unsecured lines of credit up to $500K are available based on your business cash flow and trading history. No property required.
Fast access to funds
Once your facility is approved and in place, drawing funds is immediate. No new application required each time you need to access capital.
Compare your options
Line of credit vs the alternatives
A line of credit isn't the only way to fund working capital. Here's how it compares to the options businesses weigh against it — including the business line of credit vs overdraft question that comes up most often.
| Facility | How you access it | You pay interest on | Best for |
|---|---|---|---|
| Line of credit | Draw, repay, redraw up to a limit | Only what you've drawn | Ongoing, unpredictable cash-flow gaps |
| Term loan | One lump sum up front | The full balance | A specific one-off purchase |
| Business overdraft | Attached to a transaction account | The overdrawn amount | Small, frequent shortfalls (usually via a bank) |
| Business credit card | Card purchases | Balance after interest-free days | Small everyday expenses, short float |
| Invoice finance | Advance against unpaid invoices | The advanced amount/fee | Businesses with large receivables |
The line of credit's edge is that an undrawn limit costs you nothing, so it works as a standing buffer you only pay for when you use it. For a one-off purchase, a term loan is usually the sharper tool; for large receivables, invoice finance may fit better. Weighing it against a bank overdraft specifically? We compare the two — cost, fees, speed, and security — in line of credit vs overdraft.
The cost
What does a business line of credit cost?
Two components drive the cost of a line of credit:
Interest on the drawn balance
You're charged only on what you've actually drawn, usually calculated daily and billed monthly. Unsecured, non-bank facilities are priced for speed and flexibility, so they typically sit above a secured bank facility — the trade-off for no property security and fast access.
A facility or line fee
Some lenders charge a small periodic fee to keep the limit open, whether or not you draw on it. Others don't. Always check, because it changes the true cost of holding an unused buffer.
Rates and fees vary widely by lender, facility size, and your trading profile, so the only figure that matters is the one on your actual offer. Avoir shows you options from multiple lenders so you can compare the real numbers side by side.
The honest read
Is a business line of credit a good idea?
It depends on how you'll use it. A line of credit rewards businesses with uneven or seasonal revenue and punishes ones that treat it as permanent debt.
Works well when you:
Think twice when you:
Eligibility
Am I eligible to apply?
Here is what Avoir looks for. We work with businesses trading 12 months or more; individual lender minimums vary and are set by the lender, not by us. Meeting our criteria makes a business eligible to apply. It does not mean an application will be approved.
Meeting these criteria makes a business eligible to apply; it does not mean an application will be approved. *Subject to lender credit criteria.
Process
How it works
Apply in 2 minutes
Complete our short online form with basic details about your business and what you need. Only a soft credit check, and no documents required at this stage.
We match your profile
Your enquiry is assessed and matched to the most suitable lending partners in our network based on your business profile, loan amount, and purpose.
Receive your offer
A specialist calls within 2 hours — often from a mobile or private number, so please answer. You e-sign a quick privacy form, share your last 6 months of bank statements, and they walk you through tailored options.
Funds in your account
Once you accept an offer and provide the lender's required documentation, funds are typically transferred within 24 hours.
FAQ
Common questions
Everything you need to know about getting a business loan. Can't find the answer you're looking for? Apply and a specialist will answer your questions directly.
Apply now →What is a business line of credit?
A revolving credit facility that gives you access to an approved limit. You draw what you need, repay it, and the funds become available again, paying interest only on what you've drawn.
How is a line of credit different from a business loan?
A business loan is a lump sum repaid over a fixed term. A line of credit is revolving — draw and repay repeatedly up to a limit. A loan suits one-off purchases; a line of credit suits ongoing working capital.
Is it hard to get approved for a business line of credit?
Not especially, through non-bank lenders. Approval is based on your recent trading and cash flow rather than property security. Most businesses trading 12+ months with around $10,000/month in revenue and an active ABN are eligible to apply. Meeting the criteria makes you eligible; the lender makes the final call.
Is a business line of credit a good idea?
It's well suited to businesses with variable or seasonal cash flow, because an undrawn limit costs nothing and you only pay interest on what you use. It's less suitable for a one-off purchase you'd carry long-term, where a term loan is usually cheaper.
What is a line of credit for a business in Australia?
A revolving credit facility that gives an Australian business access to an approved limit — commonly $10,000 to $500,000 unsecured — that it can draw on, repay, and draw again, paying interest only on the drawn balance.
How much can I access with a business line of credit?
Unsecured facilities typically range from $10,000 to $500,000, depending on revenue and trading history.
Do I need property as security?
No. Unsecured business lines of credit based on cash flow and trading history are available without property security.
What are the repayment terms?
Most revolving credit facilities require minimum monthly repayments. The specific structure varies by lender but typically requires repayment of drawn interest plus a percentage of the principal balance.
How quickly can I access a line of credit?
Applications are assessed within 2 hours. Once approved, the facility can typically be in place within 24–48 hours.
Sources
- business.gov.au — Apply for a business loan
- Reserve Bank of Australia — Lenders' interest rates (business lending)
General information
This page is general information, not financial advice, and does not take your business's circumstances into account. Facility sizes, rates, and fees are set by the lender and subject to credit assessment. Avoir is not a lender or credit provider; all credit decisions are made independently by our lending partners.
By James Baker · Founder, Avoir
Founder of Avoir and a commercial finance specialist focused on asset and equipment finance for Australian transport, civil and construction businesses.
Last reviewed: 24 July 2026
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