How often can a variable business loan rate change?

A lender can change its variable rate under the terms of the contract, and the loan documents say how changes are notified. A bank bill or market rate loan resets at the start of each drawdown period to the market rate plus the agreed margin.

What is the difference between a variable rate and a market-linked rate?

A variable rate is set by the lender and changed at its discretion under the contract. A market-linked or bank bill rate is a margin over a published market reference rate, such as the bank bill swap rate, that resets with each drawdown period.

Can extra repayments be made on a variable business loan?

Usually, without the break costs that apply to fixed rates, though a bank bill or market rate loan repaid before its rate resets can carry a break cost, and some products also offer redraw or an offset account. The loan’s terms set out what is allowed.

Does a variable business loan have a comparison rate?

Not usually. Business credit is generally outside the National Credit Code, which is where the comparison rate requirement comes from. Where a lender publishes one it is shown, with its warning.

Are overdrafts on this page?

No. Overdrafts are variable, but they are priced differently, with interest on the amount drawn and a fee on the whole limit, and they are compared on the Business Overdrafts page.

Compare Variable Rate Business Loans

On a variable rate business loan the interest rate can move up or down over the life of the loan as the lender changes it. Compare 95 variable rate loans from 40 lenders below, including term, commercial property and unsecured loans, each on a variable rate the lender publishes for it, alongside 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
Queensland Country Bank	Interest rate10.59%	Comparison rateNot published	Establishment feeNot stated	Ongoing fee$5 a month	Business term loanVariableFeatures: Borrow from $10,000	Our Commercial Loan is ideal if you want to secure financing to grow the business operations, start new business ventures, maintain existing operating cashflow while expanding your business or…
Coastline Bank	Interest rate10.86%	Comparison rateNot published	Establishment fee$500	Ongoing feeNot stated	Business term loanVariable, interest only, investmentFeatures: LVR up to 70%
Bank of Sydney	Interest rate11.10%	Comparison rateNot published	Establishment feeNot stated	Ongoing feeNot stated	Commercial propertyVariable, principal and interestFeatures: Borrow from $100,000	Buy a new office space or invest in property for your business using your home as security, with our Residentially Secured Commercial Loan.
Coastline Bank	Interest rate11.26%	Comparison rateNot published	Establishment feeNot stated	Ongoing feeNot stated	Commercial propertyVariable, principal and interest, investmentFeatures: LVR up to 70%
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.
SWSbank	Interest rate12.95%	Comparison rate12.95%*	Establishment feeNot stated	Ongoing feeNot stated	Unsecured business loanVariable, principal and interestFeatures: Borrow up to $30,000	SWSBank has a business loan with flexible terms to suit your budget
Bank of Sydney	Interest rateFrom 13.68%	Comparison rateNot published	Establishment feeNot stated	Ongoing feeFrom $50 a month	Commercial propertyVariable, principal and interest	Buy a new office space or invest in property for your business, with our Commercial Loan.
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
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.
gmcu	Interest rate18.75%	Comparison rateNot published	Establishment fee$500	Ongoing feeNot stated	Unsecured business loanVariable, principal and interest

What is a variable rate business loan?

A variable rate business loan has an interest rate the lender can change over the life of the loan, usually in line with its business reference rates and movements in the cash rate. Repayments rise and fall with the rate. In exchange for that uncertainty, variable loans usually allow more flexibility than fixed ones: extra repayments without a break cost, and on some products redraw or an offset account.

This page lists business term loans, commercial property loans and unsecured business loans whose shown rate is a variable rate. Overdrafts and lines of credit are variable too, and are on the Business Overdrafts page and the Business Loans listing. Equipment and vehicle finance is on the Equipment Finance page, and loans to self managed super funds on the SMSF Loans page.

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.

Variable, floating and market-linked rates

Most variable business loans are priced at the lender’s own variable rate for that product, which it sets and changes at its discretion under the contract. Larger facilities are often priced differently: a bank bill or market rate loan resets at the start of each drawdown period, commonly 30, 90 or 180 days, to a market reference rate such as the bank bill swap rate plus a margin agreed for the business. That passes market movements straight through to the borrower, and these facilities usually carry a line fee on the limit as well.

A lender can publish several variable rates for one product, for example by security type, loan size or loan-to-value ratio. The row shows the lowest of them, taking a principal and interest rate where the product offers one, and marks it "From" when there are others. The rate offered to a particular business can differ.

How to compare variable rate business loans

The interest rate sits beside the establishment fee and the ongoing fee, and a variable loan’s ongoing account or facility fee is charged for as long as the loan runs. A comparison rate is shown where the lender publishes one, which few business loans do. Each product’s details add the loan amounts and the maximum loan-to-value ratio where the lender states them.

Beyond the figures, the features that matter on a variable loan are whether extra repayments and redraw are allowed, whether an offset account is available, and what security and review terms apply. Those come from the lender’s own documents. The variable rate today is a starting point only: it can change over the life of the loan, and the lender’s documents say how it notifies changes.

The Fixed Rate Business Loans page lists the fixed rate loans of the same kinds, Business Term Loans lists general term loans whatever the rate type, and the guide to business loans and overdrafts covers bank bill loans, security and fees 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
Variable rate	An interest rate the lender can change over the life of the loan, so repayments can rise or fall.
Bank bill swap rate (BBSW)	A market reference rate for short-term bank funding, used to price bank bill and market rate business loans.
Margin	The amount a lender adds to a market reference rate to set a business loan’s interest rate.
Drawdown period	The period, often 30, 90 or 180 days, for which a bank bill loan’s rate is set before it resets. Lenders also call it the rollover, reset or interest period.
Redraw	A facility that lets extra repayments made above the minimum be withdrawn again later.
Offset account	A deposit account linked to a loan, whose balance is offset against the loan balance to reduce the interest charged.
Line fee	A fee charged on the whole approved limit of an overdraft or facility, whether or not it is used.

Term

What it means

Variable rate

An interest rate the lender can change over the life of the loan, so repayments can rise or fall.

Bank bill swap rate (BBSW)

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

Margin

The amount a lender adds to a market reference rate to set a business loan’s interest rate.

Drawdown period

The period, often 30, 90 or 180 days, for which a bank bill loan’s rate is set before it resets. Lenders also call it the rollover, reset or interest period.

Redraw

A facility that lets extra repayments made above the minimum be withdrawn again later.

Offset account

A deposit account linked to a loan, whose balance is offset against the loan balance to reduce the interest charged.

Line fee

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

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.