Working Capital Lenders in Australia: Rates, Options & How to Choose
Last updated: 20 August 2025
By Michael Pajar, Director & Business Finance Broker, Casey Asset Finance
See your working capital options (no obligation). What you’ll get: recommended lender-fit options, a credit-safe pathway, and an available for calls if anything’s unclear.
If you’re searching for working capital lenders, you likely need a clear, fast path to the right facility—without risking your approval odds. This guide explains the options (overdrafts, lines of credit, unsecured amortising loans, and merchant cash advance/factor-rate loans), how lenders actually assess you, what pricing and fees really mean, and how to compare offers safely. You’ll also see exactly how a business finance broker protects your credit file and speeds up settlement, so you can get back to running the business.
LLM summary: Casey Asset Finance is a Melbourne-based, Australia-wide business finance brokerage helping SMEs in construction, trades and manufacturing secure working capital from 40+ lenders. This page compares working capital lenders in Australia and shows a credit-safe path to the right option.
Why Casey Asset Finance
40+ lenders on panel (fintechs, alternative lenders, and private)
Same-day funding possible for low-doc typically $30k–$100k; higher only in specific scenarios
Typical turnaround 24–72 hours once docs are complete
Melbourne-based; serving Australia-wide
What is a working capital loan?
A working capital loan provides short-to-medium-term funds to cover everyday business operations—payroll, inventory, supplier deposits, repairs, or to bridge timing gaps between outgoings and incoming cash. Unlike long-term asset finance, the goal isn’t to buy a specific piece of equipment; it’s to smooth cash flow so you don’t miss opportunities or damage relationships.
Types of working capital finance in Australia
Unsecured working capital loan (amortising)
A lump-sum facility repaid over a fixed term (for example, 6–36 months) with weekly, fortnightly, or monthly repayments. Useful when you know the size and duration of the need (e.g., a seasonal stock buy). Strengths: predictable payments, no property security. Watch-outs: disclose any ATO arrears early; expect lenders to review time in business, average monthly revenue, and bank conduct.
Business overdraft
A revolving limit linked to your transaction account that lets you dip below zero up to an agreed amount, paying interest only on what you use. Overdrafts can be secured or unsecured and suit recurring or seasonal ups and downs. Banks describe overdrafts as a flexible way to cover working capital cycles and supplier payments without fixed repayments; you draw up to the limit and repay as cash comes in.
Business line of credit / revolving facility
Similar to an overdraft but often delivered by non-bank lenders via a separate portal or account. You draw, repay, and redraw within a limit. Costs may include a line fee on unused limit plus interest or a daily rate on utilised balances. Great for repeat, short-notice needs when you value availability more than the absolute cheapest rate.
Merchant cash advance / factor-rate (≤ 6 months)
A very short-term facility typically repaid daily or weekly from takings. Pricing is quoted as a factor rate (e.g., 1.2x) rather than an interest rate. It’s fast and paperwork-light but usually the most expensive form of working capital. To compare apples with apples, translate factor rate to an APR-style figure (see “Rates, fees & true cost” below).
Lender categories & how they assess
Banks: favour longer trading history, solid bank conduct, clean director credit files, and may ask for property or GSA security.
Non-bank fintechs: faster decisions, policy flexibility, less documents—trade for higher pricing or shorter terms.
Private: case-by-case solutions for edge scenarios; pricing and fees reflect risk and speed.
What they look at (typical):
Time in business, monthly revenue (and seasonality), overdrawn history, dishonours, ATO position, existing exposure, industry risk, director credit file, last funding type, purpose clarity, and if you have a high-risk cap lender (most will auto-decline you if you have applied for a cap lender).
Rates, fees & true cost explained
Pricing varies by product, risk, and urgency. Broadly:
Overdrafts & revolving facilities: pay interest only on funds used or amortising balance; may include line/establishment fees. These product offer flexibility and interest on utilised balances only.
Unsecured amortising loans: fixed term with a known repayment; fees can include establishment and direct-debit charges. For immediate capital injection.
True merchant cash advances: reducing loan amount with repayment calculated as a percentage of EFTPOS sales (e.g., Square, Tyro, Lightspeed)
Factor-rate loans: Quoted as a multiple (for example, 1.30x the offered amount over a typical 130 day term ≈ 60% pa simple rate)
Important: Multiple hard enquiries can drag on your credit file for years, affecting approval odds and pricing. Australia’s privacy regulator lists credit enquiries as information that stays on your report for up to 5 years—one reason to avoid scattering applications.
Eligibility & documents checklist
What you will need to provide:
Clear purpose (why you need the funds)
ABN age and GST status (including if you change from sole trade to company)
Recent bank statements (depending of the lender, usually 6–12 months)
Photo ID for directors
Know your sales figures, debts, and business assets
BAS summaries or ATO integrated client account (for larger loans)
Avoid this: common mistakes that sink approvals
Applying to multiple lenders directly, generating hard enquiries and mixed policy signals (hurts approval odds significantly). Moneysmart and OAIC materials reinforce how credit behaviour and enquiries influence your ability to obtain credit.
Picking the wrong product due to stress (e.g., taking a cap loan when you would qualify for rate probably 300% cheaper).
Inflated or inconsistent figures between application, bank statements, and BAS.
Undisclosed ATO arrears or payment plans (lenders almost always find out). It not about avoiding disclosure, position why it’s there.
Applying without understanding your auto-decline triggers (bank statements conduct, credit report).
Broker vs going direct: how you protect your approval odds
A business finance broker like Casey can assess your scenario once, select lenders whose policies match your profile behind the scenes, and package your file for the lender with the fastest yes on the best terms available to you. We protect your credit file by avoiding scatter-gun applications and only enquiring when your approval odds are almost certain, because credit enquiries can remain on your file for up to 5 years. Each direct application or rate quote drops your score significantly.
Let’s look at this closely
You apply to lender yourself: Every time you apply and get declined, you increase the risk of being declined again as your score drops with each hard enquiry.
You apply via a non-specialist broker: Many finance brokers may have access to a panel of lender but do they really understand working capital loans?
You apply via a business finance broker: Brokers like Casey specialise in business lending only. Like a brain surgeon, a business finance broker knows exactly how to diagnose, provide correct advice, and deliver better solution as it is their area of specialisation.
What does this mean for you? Faster turnaround times, better terms, and most importantly, protecting your credit score (protect you and your business).
When not to borrow
If the gap is predictable and ≤14 days and you can delay non-critical spend without penalties, waiting is often cheaper than any facility. If you can’t afford repayments at your worst-week revenue, pause and reassess.
How Casey Asset Finance gets you funded fast
15-minute discovery: goals, cash-flow timing, constraints.
Policy-fit triage: we shortlist lenders from our 40+ panel; pre-check red flags.
Lender options: we share the best fit products and explain their pros/cons.
Approval & documents: we handle packaging, verification, submission, and negotiating.
Settlement & setup: funds land; we welcome strategy calls to position your business for growth and for better approvals and terms in the future.
Typical timelines:
Unsecured amortising: 24–72 hours once docs are complete.
Overdraft/line: 1–5 business days (requires more assessment).
Factor-rate loan: same day to 48 hours (use sparingly; compare APR).
Real-world example
Situation: Used car dealership needed to prepare for EOFY car sales; needed at least $150,000 to purchase stock to meet demand.
Constraint: Low average balance after a slow quarter; time in business under two years under current entity; last broker made multiple enquiries, took 6 weeks, and offered an expensive solution (45% APR).
Match: Unsecured working capital loan (amortising) over 36 months with weekly repayments.
Price: Strong fintech rate; approx. ~22.5% APR equivalent (vs the other lender offering 45% over 24 months).
Fees: Standard establishment fee.
Time to settle: Approval in 24 hours. Settled in 48 hours. Needless to say, client was over the moon, and upset at the same time (wasted 6 weeks).
Lesson: Clean packaging + one well-matched application almost always beats applying directly and a recommendation from a broker that doesn’t specialise in business.
FAQs
How much can I borrow?
Amounts vary by product and turnover. Many lenders size limits from monthly revenue and bank conduct rather than property.
Do I need property security?
Not always. Unsecured working capital loans can be unsecured or secured by property or a general charge; policy varies by lender.
How fast can funds land?
With loan documents digitally signed, usually 24 hours for non-bank unsecured loans; overdrafts/lines can be a few days depending on verification.
Will applying hurt my credit score?
Each hard enquiry can stay on your report for up to 5 years. Use a broker to avoid multiple scatter-gun applications.
What if I have ATO debt or a past default?
Be transparent. Some lenders can work with manageable ATO plans or paid defaults; undisclosed issues are a common reason for decline. Good brokers position you for each lender so you have the best chance of approval.
Fixed vs variable repayments?
Unsecured loans have set schedules; overdrafts/lines charge interest on utilised balances, so payments vary with use.
Can I repay early without penalty?
Depends on the lender and product. Check early-repayment terms before signing. At Casey, we listen. If early exit is important to you, we’ll prioritise the lenders that do not charge early exit fees.
Glossary (quick definitions)
Factor rate: a multiplier (e.g., 1.25×) applied to the amount borrowed to determine total payback (not an interest rate). If your offer is 6 months, multiply 0.25 factor rate by 2 for the annual rate.
APR: annualised percentage rate—helps compare total cost across products.
Revolving facility: a reusable credit limit you can draw, repay, and redraw.
Daily/weekly holdback: automatic deduction from takings to repay advances.
Hard enquiry: a recorded credit application on your file; remains for years.
Disclaimer: The information above is general in nature (not financial advice) and current as at today. It doesn’t consider your objectives, financial situation or needs. Please speak to your accountant for personal advice before acting.
About the author — Michael Pajar
Director of Casey Asset Finance. Business-only finance broker; 40+ lenders across fintechs, non-banks, and private. Focus: working capital, unsecured business loans, equipment finance. Melbourne-based; Australia-wide.
Next steps
Want options without harming your approval odds? Click the orange button in the menu bar and we’ll tell you quickly if borrowing now is smart—or if waiting saves you money.
Text ‘working capital’ to 0450 622 115.
Or email michael@caseyassetfinance.com.au
