Updated 14 October 2026 · next review after the 3 November RBA meeting
The short answer
A business loan interest rate is what a lender charges each year to lend your business money, shown as a percentage per annum (p.a.).
In October 2026 there are two very different prices. Banks start around 7% p.a. when property secures the loan. Non-bank cashflow lenders charge from 13.95% p.a. up to around 44.5% p.a.
A bank usually wants two years of financials and property as security. A cashflow lender reads your bank statements and can fund in days.
The RBA lifted the cash rate to 4.60% on 29 September 2026. CBA and Westpac then lifted their variable business rates and overdraft reference rates by 0.25% from 9 October. The next RBA meeting is on 3 November 2026.
Non-bank cashflow lender rates
Most of the business loans we arrange are funded by these lenders. These ranges come from our panel's rate cards, dated April to September 2026.
| Your business | Rate |
|---|---|
| Director owns property, 5+ years trading, strong credit | from 13.95% p.a. |
| Director owns property, 1+ year trading, credit score 550+ | 14.95% to 18.95% p.a. |
| No property, 5+ years trading, strong credit, $1M+ turnover | 15.5% to 17.5% p.a. |
| No property, 2+ years trading, fair to good credit | 18.95% to 29.5% p.a. |
| No property, 1 to 2 years trading | 21.95% to 39.5% p.a. |
| Credit score under 550 | 39.5% to 44.5% p.a. |
Fees are extra: an establishment fee of up to 2.5% of the loan, or a documentation fee of around $495. Loans run from $10K to $1M.
A director who owns property usually gets a lower rate, even if the loan isn't secured against it. Most lenders still want the directors to sign a personal guarantee. See our guide to unsecured business loans.
You pay more because the lender takes more risk and asks for less paperwork. If you can't get a bank yes, or can't wait six weeks for one, that can be a fair trade. For stock or a tax bill, cashflow finance often suits better than a term loan.
Bank business loan rates
Bank rates are lower, but approval is harder and slower. We checked these published rates in late September 2026, before the 9 October rise, so some are now 0.25% higher.
| Lender | Rate | Source |
|---|---|---|
| Average new variable loan to a small business | 7.07% p.a. | RBA table F7, data to July 2026 |
| Lowest secured business loan listed | from 6.99% p.a. (Bank of Us) | money.com.au, 24 Sep 2026 |
| CBA BetterBusiness Loan, secured | from 7.29% p.a. | money.com.au, 24 Sep 2026 |
| CBA BetterBusiness Loan, unsecured | from 12.84% p.a. | money.com.au, 24 Sep 2026 |
| NAB QuickBiz Loan, unsecured | 12.95% p.a. | money.com.au, 24 Sep 2026 |
| NAB Business Overdraft indicator rate | 10.72% p.a. | NAB, effective 28 Sep 2026 |
None of these are quotes. Your own rate depends on your application.
Overdrafts and lines of credit move when the bank moves its reference rate. Loans secured by commercial property are priced differently again. Our affiliated private credit brokerage, Aurelius Private, has a guide to commercial property loan rates.
What moves your rate
- Security. A loan secured by property costs less. That's the biggest gap between the two tables.
- Time trading. Under 12 months rules out most cashflow lenders. Two years opens up more. Five years plus strong credit gets the best rows.
- Bank statements. Lenders look at your balance, income and any dishonours (bounced payments). Steady deposits help. Regular overdrawn days hurt.
What the 4.60% cash rate does to a variable loan
When the RBA lifts the cash rate, banks usually follow, as CBA and Westpac did from 9 October. Here's what a 0.25% rise costs. These are examples, not quotes.
Interest-only loans. The extra interest is the balance times 0.25%.
- On $250K: $250,000 × 0.25% = $625 a year, or about $52 a month.
- On $500K: $500,000 × 0.25% = $1,250 a year, or about $104 a month.
Principal and interest loans. This assumes a new five-year loan going from 7.07% p.a. (the RBA's average for new small-business loans) to 7.32% p.a.
| Loan | Repayment at 7.07% | Repayment at 7.32% | Extra a month | Extra over 5 years |
|---|---|---|---|---|
| $250K | $4,958.56 | $4,988.13 | $29.57 | about $1,774 |
| $500K | $9,917.12 | $9,976.26 | $59.14 | about $3,548 |
The rise is smaller here because you're paying the balance down.
Some loans don't move. An existing chattel mortgage (a common vehicle and equipment loan) has its rate locked at settlement, so the 29 September rise doesn't touch it. New quotes do include it. See how asset finance works. Many non-bank cashflow loans also have a fixed rate or fixed total cost. Check your contract.
Fixed or variable
Bank fixed terms for business loans usually run one to five years. Sell, refinance or pay early and the bank can charge a break cost, a fee for ending the fixed term early. Overdrafts usually can't be fixed. Westpac, for example, offers no fixed rate on its Business Overdraft or Business Equity Access Loan.
Take a $500K interest-only loan over two years from November 2026, with a two-year fixed rate 0.30% above today's variable rate. Fixing costs an extra $500,000 × 0.30% = $1,500 a year, or $3,000 over two years. These are examples only.
| What happens | Who said it | Over two years |
|---|---|---|
| Rates have peaked and stay at 4.60% | AMP's Shane Oliver (MPA, 29 Sep 2026). NAB's Sally Auld said the RBA is "done tightening for now" (savings.com.au, 30 Sep 2026) | Variable costs $3,000 less |
| One more 0.25% rise in November, then no change | CBA's Ashwin Clarke said November is "live" (savings.com.au, 30 Sep 2026) | The rise adds $2,500 to variable. Variable still costs $500 less |
| A 0.25% cut from around August 2027 | AMP's Shane Oliver expects cuts from around August 2027 (MPA, 29 Sep 2026) | The cut saves about $1,563 on variable over 15 months. Variable costs about $4,563 less |
So fixing only wins if variable rates rise by more than 0.30% on average across the two years. That needs more than one rise, held for most of the term. Markets put the chance of a November rise at about 20% after August inflation (CPI) came in at 4.0% headline and 3.6% on the trimmed mean, the RBA's preferred measure (ABC, 30 Sep 2026).
Before you fix, get the break cost terms in writing.
Fees count too
A 2.5% establishment fee on a $100K loan is $2,500 on day one. Some lenders also charge monthly account fees or early payout fees.
Some non-bank loans quote a simple interest rate or a total payback figure, not a rate that falls as you repay. They can look alike and cost very different amounts. See APR vs simple interest and the true cost of a business loan.
What to check before 3 November
- Is your loan variable or fixed? Your contract or loan schedule will say.
- Check any rate change letter and your new repayment from 9 October.
- See how much of your overdraft you use. Each 0.25% rise costs more on a fully drawn limit.
- If you hold a fixed quote, check its expiry date and break cost terms.
- On a high non-bank rate and your business has grown? You may now fit a better row.
We're a broker, not a lender. We compare lenders on our panel and show you the full cost of each offer. All finance is subject to lender approval. This page is general information, not personal financial or credit advice. Finance for a business purpose generally sits outside the consumer credit rules in the NCCP.
Credit Representative 560751 of Viking Money Pty Ltd, Australian Credit Licence 471435 (Viking Aggregation Pty Ltd).
Sources
- Non-bank cashflow lender rate cards on the Aurelius Capital panel, dated April to September 2026 (lenders not named)
- Cash rate target (Reserve Bank of Australia)
- Interest rates, table F7 (Reserve Bank of Australia)
- Business loan rates, updated 24 September 2026 (money.com.au)
- NAB business indicator rates, effective 28 September 2026 (NAB)
- CBA newsroom notice, 30 September 2026: variable and overdraft reference rate changes from 9 October 2026 (CBA)
- Westpac business lending rate changes from 9 October 2026 (Westpac)
- Shane Oliver outlook, 29 September 2026 (MPA)
- Ashwin Clarke and Sally Auld comments, 30 September 2026 (savings.com.au)
- CPI and November rate odds, 30 September 2026 (ABC)