What security do lenders take for a term loan?

Commonly residential property owned by the business owners, the business’s own assets, a general security interest over everything the business owns, or cash deposits, and directors are often asked for personal guarantees. Unsecured term loans are available for smaller amounts, generally at higher rates.

What is a bank bill business loan?

A facility priced at a margin over a market reference rate, such as the bank bill swap rate, that resets at the start of each drawdown period, commonly 30, 90 or 180 days. A line fee usually applies to the facility limit as well.

Can a business term loan be interest only?

Many can, for a set period. Repayments are lower during that period, but the balance does not reduce, and the full amount is still owed when it ends. Lenders often publish a separate rate for interest-only repayments.

What notice does a bank give before calling in a small business loan?

Under the Banking Code of Practice, a subscribing bank gives a small business at least 30 days’ notice of a missed payment before demanding full repayment or enforcing the loan, except in limited cases such as insolvency. Where a loan is not fully repaid by its regular repayments, a bank that decides not to extend it gives at least three months’ notice before full repayment is due, as long as the business is not in default.

Compare Business Term Loans

Q: What is a business term loan?

A set amount borrowed once and repaid over an agreed term, at a variable or fixed rate. Businesses use term loans to fund an expansion or fit-out, buy stock or another business, or refinance existing business debt.

A business term loan lends a set amount that is repaid over an agreed term, secured against property or other assets or unsecured. Compare 111 loans from 36 lenders below on the published interest rate, the comparison rate where the lender publishes one, and the main establishment and ongoing fees, and rates start from 6.33% p.a. with Southern Cross Credit Union’s Business Loan.

Rates checked against providers’ own published data on 24 Oct 2026

For business use. These products are for business purposes. If you are borrowing or saving for yourself, or for an investment property you own personally, compare Home Loans, Personal Loans and other personal products instead.

	Comparison rate	Establishment fee	Ongoing fee	Actions
Coastline Bank	Interest rate10.86%	Comparison rateNot published	Establishment fee$500	Ongoing feeNot stated	Business term loanVariable, interest only, investmentFeatures: LVR up to 70%
Great Southern Bank Business+	Interest rate10.95%	Comparison rateNot published	Establishment fee$495	Ongoing fee$20 a month	Business term loanFixed 2 years, principal and interestFeatures: Borrow $1 to $3	Whether it's to expand your business, cover expenses, or fund a big purchase, this product could help your business take the next step.
Bank of Queensland	Interest rateFrom 11.27%	Comparison rateNot published	Establishment fee0.75% of the limit (min $750)	Ongoing feeFrom $25 a month	Business term loanVariable, principal and interestFeatures: Borrow from $10,000	Whether you are looking to buy a new business, grow your business or to expand your operations, our Business Term Loan can help with your business financing needs
Broken Hill Bank	Interest rate11.50%	Comparison rateNot published	Establishment fee$705	Ongoing feeNot stated	Business term loanVariable, principal and interestFeatures: Borrow from $2,000	Broken Hill Bank's Solution to Business Loans.
Central West Credit Union	Interest rate11.70%	Comparison rateNot published	Establishment fee$150	Ongoing feeNot stated	Business term loanVariable, interest only, investment	Loans for Business purposes
The Mutual Bank	Interest rate12.04%	Comparison rateNot published	Establishment fee$250	Ongoing fee1.50% of the unused limitPeriod not stated	Business term loanVariable, interest only, investmentFeatures: Borrow from $20,000LVR up to 70%	A business loan for commercial purposes, secured by either commercial or residential property.
Bank of Sydney	Interest rateFrom 13.83%	Comparison rateNot published	Establishment feeNot stated	Ongoing fee$50 a month	Business term loanVariable, principal and interest	Looking to expand your business? Cover renovation, new equipment or unexpected costs, with a Business Loan.
Coastline Bank	Interest rate13.89%	Comparison rateNot published	Establishment feeNot stated	Ongoing feeNot stated	Business term loanVariable, principal and interest, investmentFeatures: LVR up to 70%
Liberty Financial	Interest rate14.95%	Comparison rateNot published	Establishment fee1.25% of the loan amount (min $1,950)	Ongoing fee$30Period not stated	Business term loanVariable, principal and interest, investmentFeatures: Borrow $50,000 to $500,000	Flexible business loans
Moula	Interest rate15.99%	Comparison rateNot published	Establishment fee2.00% of the loan amount	Ongoing feeNot stated	Business term loanFixed, principal and interestFeatures: Borrow $10,000 to $500,000
Arab Bank Australia	Interest rate16.35%	Comparison rateNot published	Establishment fee0.35% of the loan amount	Ongoing feeNot stated	Business term loanVariableFeatures: Borrow from $25,000	Part of a range of products designed to assist you if you are looking to buy or start your own business or if you are looking to expand your existing business.

What is a business term loan?

A business term loan is a set amount borrowed once and repaid over an agreed term, used to fund an expansion, a fit-out, stock, the purchase of a business or the refinance of existing business debt. This page lists the term loans that are not a more specific kind of lending: general business loans, loans secured by residential property or business assets, and the bank bill or market rate facilities whose lenders publish a rate. Most bank bill and market rate loans are priced on application and are not listed.

Loans secured by offices, shops, warehouses and other premises are on the Commercial Property Loans page, vehicle and equipment loans on the Equipment Finance page, and unsecured business loans on the Business Loans listing under the Loan type filter.

These products are for business purposes. A loan for personal use, or for a residential investment property held in a personal name, is compared on Home Loans and Personal Loans instead.

Security, rate type and repayments

Three choices shape most term loans, and lenders often publish a separate rate, and sometimes a separate product, for each combination.

Security. Business term loans are commonly secured by residential property owned by the business owners, by the business’s own assets or by a general security interest over everything the business owns, and directors are often asked for personal guarantees. Unsecured loans are available for smaller amounts, generally at higher rates.
Rate type. A variable rate moves with the lender’s business reference rates, and a fixed rate is locked for a set period. Bank bill and market rate loans reset at each drawdown period to a market reference rate, such as the bank bill swap rate, plus a margin agreed with the business. Fixed and variable loans are also listed on their own on Fixed Rate Business Loans and Variable Rate Business Loans.
Repayments. Principal and interest repayments reduce the balance over the term. Interest-only repayments keep the regular payment lower, but the full balance is still owed when the interest-only period ends.

Where a lender publishes these as separate products, each one is its own row, labelled with its variant, such as "Fixed 3 years, interest only". Where one product publishes several rates, its row shows the lowest, a principal and interest rate where there is one, marked "From".

How to compare business term loans

Each row’s interest rate sits beside its establishment fee and ongoing fee, and the fees count too: on a smaller loan, a few hundred dollars a year in account fees can outweigh a small difference in rate. A comparison rate is shown where the lender publishes one, which few business term loans do. Each product’s details add the loan amounts it is offered for and the maximum loan-to-value ratio where the lender states them.

The data does not say what security a lender will want for a particular business, which financial covenants apply or how often the loan is reviewed, and the listing does not show what it costs to repay early or break a fixed rate. Those terms are in the lender’s own documents and can matter as much as the rate.

Notice and review terms

For a small business customer of a bank that subscribes to the Banking Code of Practice, the bank gives at least 30 days’ notice of a missed payment before demanding full repayment or enforcing the loan, except in limited cases. Where a loan is not fully repaid by its regular repayments over the term, such as an interest-only loan with the balance due at the end, a bank that decides not to extend it gives at least three months’ notice before full repayment is due, as long as the business is not in default. A bank that does extend or refinance the loan is not required to do so on the same terms.

The guide to business loans and overdrafts covers term loans, security and personal guarantees in more detail.

CompareThat is a comparison service, not a lender or broker. This page is general information only, not credit or financial advice, and we do not compare every business loan available in Australia. The lender’s own terms, fees and eligibility criteria set out what it offers.

Glossary

The key terms you’ll meet when comparing these products, reading product disclosures or talking to a provider.

Term	What it means
Term loan	A set amount borrowed once and repaid over an agreed term.
Principal and interest	Repayments that cover the interest and reduce the amount owed, so the loan is repaid over its term.
Interest only	Repayments that cover only the interest for a set period, so the amount owed does not reduce during it.
Bank bill swap rate (BBSW)	A market reference rate for short-term bank funding, used to price bank bill and market rate business loans.
Line fee	A fee charged on the whole approved limit of an overdraft or facility, whether or not it is used.
General security interest	Security over all of a business’s present and future personal property, which does not include land or buildings, registered on the Personal Property Securities Register.
Personal guarantee	A promise by a director or owner to repay a business’s debt if the business cannot, which puts the guarantor’s own assets at risk.
Break cost	A cost charged when a fixed rate is ended early by repaying, refinancing or switching, reflecting the lender’s cost of unwinding the fixed rate.

Term

What it means

Term loan

A set amount borrowed once and repaid over an agreed term.

Principal and interest

Repayments that cover the interest and reduce the amount owed, so the loan is repaid over its term.

Interest only

Repayments that cover only the interest for a set period, so the amount owed does not reduce during it.

Bank bill swap rate (BBSW)

A market reference rate for short-term bank funding, used to price bank bill and market rate business loans.

Line fee

A fee charged on the whole approved limit of an overdraft or facility, whether or not it is used.

General security interest

Security over all of a business’s present and future personal property, which does not include land or buildings, registered on the Personal Property Securities Register.

Personal guarantee

A promise by a director or owner to repay a business’s debt if the business cannot, which puts the guarantor’s own assets at risk.

Break cost

A cost charged when a fixed rate is ended early by repaying, refinancing or switching, reflecting the lender’s cost of unwinding the fixed rate.

Common questions

Rates and fees are sourced from each provider’s CDR Product Reference Data as of the date shown. They are general information only. Not credit advice. CompareThat is not a credit provider. Payment can change where a product appears, never which products we show.

Compare Business Term Loans

Important information

What is a business term loan?

Security, rate type and repayments

How to compare business term loans

Notice and review terms

Glossary

Common questions

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