---
title: Business Loans Melbourne | Working Capital Finance | GNT Finance
description: Business loans, working capital, unsecured finance and acquisition funding for Melbourne and Australia-wide operators. What lenders want and what it really costs.
url: https://gntfinance.com.au/services/business-loans/
section: services
updated: 2026-09-02
author: Gorakh Timilsina, GNT Finance
---

# Business Loans and Commercial Finance

**In short:** A business loan funds stock, cash-flow gaps, equipment, a fit-out, an acquisition or an expansion. Secured facilities backed by property are the cheapest and slowest; unsecured cash-flow loans are the fastest and dearest. GNT Finance shortlists the structure and the lender that suit your trading pattern, and tells you the real cost per dollar borrowed before you sign.

Most business owners get offered whatever product their own bank happens to be pushing that quarter. That is not the same as the right facility. A seasonal wholesaler and a services firm with 60-day debtors have opposite cash-flow shapes and should not be financed identically. Gorakh Timilsina spent years as a senior credit officer reading business files from the lender's side, and that is the lens we bring to yours.

## Facilities we arrange

| Facility | Typical use | Security | Typical term | Speed |
|---|---|---|---|---|
| Secured business term loan | Expansion, acquisition, refinancing dearer debt | Residential or commercial property | 5–15 years | 3–6 weeks |
| Unsecured business loan | Stock, marketing, a short cash-flow gap | Director guarantee only | 3 months – 3 years | 1–5 days |
| Business overdraft / line of credit | Smoothing a lumpy debtor cycle | Property or a general security agreement | Revolving, reviewed annually | 2–4 weeks |
| Invoice finance (debtor finance) | Unlocking cash tied up in unpaid invoices | The invoices themselves | Revolving | 1–3 weeks |
| Trade and import finance | Paying overseas suppliers before you are paid | The goods, plus a guarantee | 30–180 days per drawing | 2–4 weeks |
| Business acquisition finance | Buying a business or a partner's share | Property, plus goodwill in some cases | 5–10 years | 4–8 weeks |
| Equipment and vehicle finance | Trucks, plant, fit-out, technology | The asset | 2–7 years | 1–7 days |

Equipment sits in its own world of chattel mortgages and leases. That is covered on our [asset and equipment finance](/services/asset-and-equipment-finance/) page. If the purchase is a building rather than a machine, see [commercial property loans](/services/commercial-property-loans/).

## What a secured loan actually saves you

The gap between secured and unsecured business lending is the single biggest number in this market, and it is rarely spelled out. Unsecured lenders often quote a "factor rate" or a total repayment figure rather than an interest rate, which makes comparison hard.

### Worked example: $150,000 for stock and a fit-out

Two realistic structures for the same $150,000, using illustrative pricing rather than any current market quote.

**Option A — unsecured 18-month cash-flow loan, illustrative 18% p.a., weekly repayments**

- Monthly-equivalent repayment on $150,000 over 18 months at 18% p.a. is about $9,570.
- Total repaid: $9,570 × 18 = **$172,260**.
- Cost of the money: **$22,260**, plus a typical 2% establishment fee of $3,000. Call it **$25,260**.

**Option B — term loan secured against the family home, illustrative 7.5% p.a. over 10 years**

- Monthly repayment on $150,000 over 10 years at 7.5% p.a. is about $1,781.
- Total repaid over the full term: $1,781 × 120 = **$213,720**, so $63,720 of interest across ten years.
- But if you repay it in the same 18 months by paying roughly $8,840 a month, total interest is about **$9,100**, plus perhaps $1,500 of establishment and valuation costs.

Option B costs roughly $14,500 less for the same money over the same period. The catch is that your house is now security for a business debt, the approval takes weeks not days, and if trading turns you have put the family home in the firing line. Both facts belong in the decision, and a lender selling you one of them will not usually explain the other.

### The cost-per-dollar test

Before you accept any unsecured offer, ask for one number: the total amount repayable. Divide it by the amount advanced. A total of $172,260 on $150,000 advanced is $1.15 back for every dollar borrowed over 18 months. Now ask whether the stock or the fit-out will generate more than 15 cents of gross margin per dollar in that window. If it will not, the loan is destroying value no matter how convenient the approval was.

## What lenders assess

Business credit assessment is not a scorecard the way a consumer loan is. An assessor reads for a story that holds together.

- **Trading history.** Most mainstream lenders want two years of ABN registration and GST registration, and 12 months of consistent turnover. Under that, you are into the specialist and fintech end of the market at a higher price.
- **Servicing.** Lenders work from your last two years of tax returns and financial statements, adding back non-cash items like depreciation, one-off expenses, interest on debt being refinanced, and often a portion of directors' wages and superannuation. Getting the add-backs presented properly is where a broker earns their keep.
- **Bank statements.** Six to 12 months. Assessors look at the pattern, not the balance: how many days the account sits in overdrawn territory, dishonoured direct debits, ATO payment-plan debits, and whether the credits match the turnover claimed in the returns.
- **ATO position.** An unmanaged tax debt is the most common reason a good business gets declined. A tax debt under a formal payment plan that has been met for three to six months is a very different file from one that has not.
- **Director position.** Personal credit file, property held, and existing personal debt. Most business facilities require a director's guarantee, which is a real personal liability. Read our note on [guarantor legal responsibilities](/legal/guarantor-legal-responsibilities/) before you sign one.
- **Industry.** Hospitality, construction subcontracting and transport carry a higher assessed risk than professional services or medical. That shows up in the price and the LVR, not usually in a refusal.

## Who we work with

Melbourne's north and west run on owner-operated businesses, and a large share of our clients came to Australia and built one. We regularly arrange finance for restaurants and cafés, grocery and spice retailers, cleaning and facilities contractors, transport and courier operators, aged care and disability providers, IT contractors and consultancies, childcare, trades and construction subcontractors, and medical and allied health practices.

If your business income also needs to support a home purchase, the two applications interact. Read [self-employed loans](/services/self-employed-loans/) and the [self-employed home loan guide](/guides/self-employed-home-loan-guide/) before you draw down business debt in the twelve months before you buy, because new business borrowings reduce your assessed personal servicing.

## Documents to have ready

| Category | What to gather |
|---|---|
| Business identity | ABN and ACN, trust deed or partnership agreement, GST registration |
| Financials | Last two years of tax returns and financial statements for every entity |
| Current trading | Year-to-date profit and loss, aged debtors and creditors, last four BAS |
| Banking | Six to 12 months of business transaction and loan statements |
| ATO | Integrated client account statement, and the payment plan if one exists |
| Directors | Photo ID, personal assets and liabilities, personal loan statements |
| The purpose | Quote, contract of sale, lease, or the business sale agreement |

Having these ready before we approach a lender is the difference between an approval in a fortnight and a request for information that stretches into a second month.

## How we work

1. **A conversation about the business, not just the number.** What the money is for, when it comes back, and what the seasonality looks like.
2. **A structure recommendation.** Often the answer is a combination: a small overdraft for the cycle plus a term loan for the asset, rather than one big loan doing both jobs badly.
3. **Shortlist and indicative terms.** We approach lenders on our [panel](/lenders/) whose credit appetite fits your industry and numbers, and get indicative pricing before a formal application marks your file.
4. **Application and negotiation.** We present the add-backs, explain the anomalies before an assessor has to ask, and push back on covenants that would restrict you unnecessarily.
5. **Settlement and review.** We diarise the facility review date so the annual renewal is not a surprise.

We hold a best interests duty on consumer credit, and we apply the same standard here. See [best interests duty](/legal/best-interests-duty-mortgage-brokers/) for what that means. Where a fee is payable by you on a commercial facility, we quote it in writing before you apply.

## Frequently asked questions

### How much can my business borrow?

There is no single multiple. Secured lending is driven by the property value: typically up to 70–80% of a residential security and 65–75% of a commercial one, provided servicing supports it. Unsecured lending is usually capped at somewhere between one and three months of turnover, so a business turning over $1.2 million a year might see $100,000 to $300,000 offered. Servicing, not the cap, is usually the binding constraint.

### Can I get a business loan with less than two years of trading?

Yes, but the market narrows sharply. Some lenders will work with six to 12 months of trading if the turnover is consistent, the directors have industry experience and there is property security or a strong personal position behind it. Expect a higher rate and a lower limit. If you can wait until you have two full years of returns, the pricing improves materially.

### Will a business loan affect my ability to buy a house?

Yes, in both directions. New business debt with a director's guarantee is generally counted against your personal servicing, which cuts your home-loan borrowing power. On the other hand, a business that has been profitable for two years strengthens a home-loan file. If you plan to buy a home within a year, tell us before you take on the business facility so we can sequence them.

### Do I have to put up my house?

Not always. Unsecured and invoice finance facilities do not take property security, and equipment finance is secured by the asset itself. But almost every business facility takes a director's guarantee, which means the lender can pursue you personally even without a mortgage over your home. That is a real risk and worth independent legal advice.

### What is the ATO debt threshold that stops an approval?

There is no universal figure. What matters more is whether the debt is under a formal payment arrangement and whether that arrangement has been met. Some lenders will refinance an ATO debt into a term facility, which is often the cheapest way out of a general interest charge. Disclose it early — assessors find it in the bank statements anyway, and a late disclosure damages credibility far more than the debt itself.

### How fast can funding arrive?

An unsecured facility from a specialist lender can settle in one to five business days on bank statement data alone. A secured term loan runs three to six weeks because of the valuation and the credit queue. Business acquisition finance is slower again, four to eight weeks, because the lender needs the sale contract, the target's financials and often a lease assignment.

## Talk to GNT Finance

Tell us what the money is for and when it comes back, and we will tell you which structure is right and what it truly costs per dollar borrowed. GNT Finance works with owner-operated businesses across Melbourne's north and west and Australia-wide by phone and video, in English, Nepali or Hindi, with an interpreter in your language on request. [Book a free consultation](/contact/) or call 0426 403 703.

*This page is general information only and not legal, tax or financial advice. Lending criteria, terms, fees and charges apply, and approval is subject to lender assessment.*