Understanding Business Loan Interest Rates in 2025: What’s Average, What’s High, and How Lenders Compare
Confused by interest rate quotes? You’re not alone. This guide explains what’s driving lender pricing in 2025 — and how to make sure you’re not overpaying.
If you’re a small business owner in Australia looking to take out a loan, chances are you’ve asked yourself this question: “Am I getting a fair interest rate?” You might have Googled average rates or compared a few lender websites, only to find the numbers are all over the place — and no one gives you a straight answer.
At Casey Asset Finance, we see it all the time — great businesses being quoted sky-high rates, or worse, getting vague promises only to be declined later. You might feel like you're flying blind when comparing options. The truth is, you shouldn’t have to figure it all out yourself — and with the right help, you won’t have to.
The reality is, business loan interest rates can vary a lot depending on the lender, the loan type, and even your industry. But understanding why they vary — and how to make sure you're not paying more than you should — can save your business thousands.
In this post, we’ll break it down in plain English.
What’s a Typical Business Loan Interest Rate in Australia?
Business loan interest rates usually range between 7% to 15%, depending on your situation. But that’s a wide range, and most lenders won’t advertise their real rates upfront.
A few things that influence your rate:
Whether the loan is secured or unsecured
Your financials and credit profile
Your industry
The lender’s risk appetite
Whether it’s a low-doc or full-doc loan
📝 As of March 2025, the average interest rate for small business loans in Australia is around 7.33% for outstanding loans, and 7.10% for new loans (source).
For a broader overview on loan types, visit business.gov.au’s finance guide.
Why Business Loan Interest Rates Vary So Much Between Lenders
No two lenders are the same — and neither are their interest rates.
Here’s why your rate might vary depending on who you apply with:
1. Loan Type
Unsecured business loans tend to attract higher interest rates (often 8%–25%) due to higher lender risk.
Secured loans, like equipment finance, can come in much lower (5%–9%) if you’re offering an asset as security.
2. Lender Type
Big banks might offer competitive rates but usually require extensive documentation and security.
Non-bank lenders and fintechs offer faster approvals and more flexibility (great for low-doc loans), but rates may be higher.
3. Loan Amount and Term
Shorter-term or smaller loans generally come with higher interest.
Larger, longer-term loans may offer better pricing — especially with strong documentation.
4. Your Business Profile
Factors like your time in business, annual revenue, credit score, and industry risk will all impact your rate — and how each lender views your risk is different.
How to Get a Better Business Loan Interest Rate
Here’s what you can do to improve your chances of securing a competitive rate:
✅ Keep your financials up to date.
Even if you're going for a low-doc loan, lenders may still want to see recent BAS, bank statements, or asset details. Clean data = better pricing.
✅ Don’t apply everywhere.
Multiple loan applications can hurt your credit. Use a broker to compare options without damaging your score.
✅ Look beyond just the rate.
Sometimes a slightly higher rate comes with better repayment flexibility, early payout benefits, or faster turnaround — which can save money overall.
✅ Work with a broker who knows the market.
A good broker knows which lenders are currently offering sharp deals — and how to present your application to get the best offer.
Real Example: Two Clients, Two Very Different Rates
Client A: Provided full financials and secured their loan against business equipment → Approved at 6.5% with a bank lender.
Client B: Needed fast working capital and had limited documents → Funded in 24 hours at 13.95% through a non-bank lender.
Different rates, different needs — both great outcomes.
Don’t Just Compare Rates — Compare Fit
Interest rates are important, but they’re not the only thing that matters. What matters more is the right loan for your business — something you can repay comfortably, with terms that support your cash flow and goals.
That’s where we come in.
At Casey Asset Finance, we take the time to understand your business, your goals, and your challenges. With access to over 40 trusted lenders, we match you with the right solution — whether you need working capital, equipment, or something more complex.
📌 Learn more on our Business Loans page
📌 Looking at asset-backed options? Visit our Equipment Finance page
Need help comparing business loan interest rates?
Let’s have a quick chat. No pressure, no jargon — just friendly, honest advice to help you make the best decision for your business.
