Lumi Line of Credit Review (2026): How it works, costs, and who it suits
Last updated: 15 January 2026
Written by: Michael Pajar, Director, Business Finance Broker
Cash flow gaps can happen fast. One week things are fine. The next week, a customer pays late and a supplier wants money sooner. Suddenly, you’re short.
That’s why many business owners have looked at Lumi’s Line of Credit. Not because they want more debt, but because they want a backup option. Something they can use only when they need it.
This post keeps it simple. It explains:
how Lumi’s line of credit works
what Lumi says about fees and costs
the basic eligibility rules
why some businesses don’t get approved
what other options people look at if it’s not a fit
If you want the general guide first, here it is: business line of credit
Quick summary
What it is
A line of credit is a limit you can use again and again. You draw funds, repay, then you can draw again (as the limit becomes available).
Why people like it
It can help with timing gaps. It is often used when the problem is timing, not profit.
What Lumi says about fees
Lumi says they charge a one-off establishment fee the first time you draw down, and no extra fees while the line of credit is open.
Lumi also promotes no early repayment fees and no hidden fees on their line of credit page.
Want the category guide
If you are comparing options across the market, see: unsecured business line of credit
What is Lumi?
Lumi is an Australian business lender. They offer business loans and a business line of credit.
They’ve also won awards from WeMoney. Small business lender of the year, as well as Best for Line of Credit (two years in a row), and Best for Flexibility - Line of Credit.
How Lumi’s line of credit works
A line of credit is like a tap you can turn on and off.
you get approved for a limit
you draw what you need
you repay
the available limit goes back up as you repay (based on the facility rules)
This is why people like it. You do not have to take a brand new loan each time something comes up.
What businesses use it for
Most people do not use a line of credit for fun. They use it to stay steady.
Common reasons include:
wages when customers pay late
stock or supplier bills
seasonal slow weeks
a buffer for surprise costs
Costs and fees (as at Jan 2026)
Lumi’s fees:
there is a one-off establishment fee the first time you draw down
there are no extra fees while the line of credit is open (no annual or monthly line fee)
there are no early payout fees compared to what you’ll typically see in the market
They are also known for:
Australia’s #1 Business Line Of Credit (Frequently awarded)
having rates “from 15.5% APR” (roughly equivalent to a factor rate of 1.05 on 6-month term!*)
*Important note: rates and pricing can vary by business and risk. It is worth checking the latest terms at the time you apply.
Minimum eligibility
For a line of credit facility — you would need to be at least:
2 years in business
$120,000 annual turnover
average credit score
manageable financial situation
Quick tip: a line of credit is much harder to get approved for than a typical business loan, so the best time to apply is usually when you don’t need it.
Why people do not get approved
A line of credit is flexible. That is the good part.
But it also means lenders need to be careful to make sure they approve the right businesses.
Some common reasons it does not work out:
clear explanation on the purpose of the funds
they over explain mentioning something that declines the deal
messy bank statement conduct (lots of ups and downs)
too many other repayments coming out each week
frequent dishonours or negative days
tax pressure showing up in cash flow
sharp revenue drops
too many recent credit enquiries
A “no” does not always mean the business is bad. Often it means the timing or presentation is wrong.
A deeper explanation on why they decline
Lumi is a premium non-bank lender, so their approval criteria can be strict.
Almost all (over 95%) of business owners who apply directly do not get approved. That is usually because their bank statements or overall profile do not match what the lender is looking for.
For businesses that have acceptable and average profiles, they can still qualify, but often get declined due to over explanation.
A broker can help by checking fit first (without impacting your credit score) and presenting the application clearly, so you do not waste time or enquiries.
Lumi also nominated CASEY for Lender’s Choice Broker of the Year in 2025 (Optimise Awards), and we respect their careful approach to responsible lending, as well as their helpful team, and incredible product range.
Where a broker can help (without the sales pitch)
This is the honest value of a broker (business finance) for products like this:
Fit-check first
Work out whether the business matches the lender’s appetite before triggering a formal application (hard enquiry on your credit file).Clean packaging
Present the business clearly (income, cash flow story, liabilities, purpose), so it’s assessed on the right facts, they get comfort, and we receive the okay to proceed with a submission.Avoid avoidable declines
Sometimes the best move is “not yet” and fixing one or two obvious issues first.
No one can promise an approval. But a good process can reduce wasted time and unnecessary enquiries.
Most importantly, following a reliable process by an experienced broker means that you improve your chances greatly.
If Lumi isn’t the right fit
If the business doesn’t match Lumi’s criteria right now, there are still other ways to create flexibility, such as:
other non-bank lines of credit
invoice-based facilities (for businesses with strong accounts receivables)
trade finance (for importers with larger purchase orders)
consolidation to reduce repayment pressure before applying again
Other Lumi products
If you are comparing Lumi in general, Lumi also promotes their business loan products which also includes features like “Rate Ease”, “Payment Pause”, and “Payment Holiday”. More information can be fonud on their website.
FAQs
Is Lumi’s line of credit unsecured?
Lumi promotes unsecured options in their line of credit positioning.
“Unsecured” means property is not used as security, but the business is still assessed strongly.
Does Lumi charge ongoing line fees?
As at January 2026, Lumi only charges a once-off establishment fee on first drawdown and no extra fees while the line of credit is open. Important: their once-off establishment fee is lower than competing line of credit providers.
Does Lumi charge early repayment fees?
Lumi does not charge an early repayment fee on their line of credit facilities.
Why do businesses get declined for a line of credit?
Often it comes down to bank statement conduct, stacked repayments, revenue volatility, or too many recent enquiries. A line of credit is flexible, so lenders often want to see strong control and consistency.
What is the minimum trading time and turnover?
Lumi LOCs require a minimum 2 years time in business and $120,000 in annual turnover.
If I do not qualify, what do people look at instead?
It depends on what you need. Some businesses look at other lines of credit, invoice-backed finance, trade finance, or consolidation first, then revisit a line of credit later.
Next step
If you want, we can do a quick eligibility check and tell you whether a line of credit looks realistic before anything formal happens, and don’t worry, there’s no impact to your credit score to check.
No application without your consent
Important note
This page is general information only. It does not take into account your full situation. Product terms can change, so always check the latest lender disclosures.
