Business borrowing has cost more in 2026. The Reserve Bank of Australia raised the cash rate four times this year, a quarter of a percentage point each time, according to its cash rate decisions.
Most of what you’ll find on business loan rates in Australia in 2026 is lender rate tables. They list numbers, but they don’t explain why your business might be offered something different, or what you can do about it before you apply.
This guide covers both. If you’d rather talk it through for your own business, you can contact our team and we’ll walk you through the options before anything is lodged.
Why Business Loan Rates Rose in 2026
The RBA describes the cash rate as the interest rate on unsecured overnight loans between banks. It isn’t the rate on your business loan, but it feeds into what lenders charge. The four rises came in February, March, May and September.
In its statement of 29 September 2026, the RBA pointed to inflation that “remains elevated”, higher global energy prices and pressure on the economy’s capacity.
Lenders followed. The RBA’s data on lenders’ interest rates shows average rates on business loans rose through the first eight months of 2026 for small, medium and large businesses alike, with small businesses paying the highest average rate throughout.
The RBA has said it will do “what it considers necessary” to bring inflation back to target. Nobody can tell you where rates go next, so the more useful question is how well your loan would cope if they moved again.
For a fuller explanation of how a lending rate is built, see our guide to how interest rates are decided.
Business Loan Rates Australia 2026: What Actually Sets Your Rate
Published business loan rates in Australia in 2026 are a starting point, not an offer. Two businesses can apply to the same lender in the same week and be offered different rates.
Australian business loans are priced on how the lender reads the risk in each application. These are the factors that weigh most:
Security
A loan backed by property, equipment or stock gives the lender something to recover if repayments stop.
Trading history and financials
The lender wants to see the business earns enough, consistently, to repay.
Existing debt
What the business already owes affects how much more it can comfortably carry.
Loan purpose
Buying equipment, funding stock and covering a cash flow gap are assessed differently.
Amount and term
How much you borrow and how long you take to repay change both the risk and the cost.
Business size
The same RBA data shows small businesses pay higher average rates than medium and large ones.
None of these is a pass or fail on its own, and lenders don’t all weigh them the same way. That’s why comparing several is worth the effort.
Our business loans page covers the loan types we arrange and the businesses they suit.
What You Can Change Before You Apply, and What You Can't
Rate tables leave this part out. Some of what decides your rate is already fixed by your business’s history. Some of it you can improve in the months before you apply.
- financials and cash flow
- a business plan for the loan
- small debts and overdue accounts
- security and a guarantor
- the repayment you can afford
- trading history
- repayment record
- industry
- past revenue and profit
- business size
Within Your Control: What to Fix First
A lender looking at last year's numbers can only price last year's business. Current statements and a cash flow statement show where it is now.
They're often the quickest item to fix, and overdue accounts can count against you when a lender reviews your repayment record.
A plan that shows how the money will be used and repaid answers the lender's first question before it's asked.
Base it on your leaner months, not your best ones, so the loan still works if rates rise again.
Know what you could offer, and who could act as guarantor if one is needed, before a lender asks.
Set by Your History: Present It Clearly
How long you’ve traded, your repayment record, your industry, past revenue and profit, and the size of the business are already set. You can’t rewrite them, but a complete, well-organised application makes them easier for a lender to assess. Missing paperwork leaves the lender to fill the gaps with caution.
The government’s business.gov.au loan guide makes the same point: understand your income, expenses, debts and cash flow before you decide how much to borrow.
Not Sure Which Business Loan Fits?
Tell us what the loan is for, and we’ll compare the options that suit your business before you apply.
Secured or Unsecured: The Trade-Off
A secured loan is backed by something of value, such as property, equipment or stock. If repayments aren’t made, the lender can take that security to recover what it’s owed. An unsecured loan doesn’t put those assets at risk, so the lender relies more on the business’s financial health to judge whether it can repay.
Without security, the lender carries more of the risk itself. Ask each lender how its offer changes with and without security, and get both answers in writing before you choose.
If you’re buying a vehicle or equipment, that asset can often be the security itself, which is how asset finance works. Where commercial property is involved, our commercial property loans page covers lending against it.
Fixed or Variable When Rates Have Been Rising
After four rises in a year, locking in a rate can look like the safe choice. It can be, but it comes with trade-offs.
Fixed Rate
- Repayments stay the same for the fixed period
- Easier to budget around tight cash flow
- Ask what it would cost to repay or refinance before the fixed period ends, in writing
Variable Rate
- Repayments move with the lender’s pricing, up or down
- More flexibility if you plan to repay early or change the loan later
- Repayments can rise when the lender’s rate rises
Neither option is right for every business. The better choice depends on your cash flow, your plans for the loan and how much movement in repayments you can absorb. We compare the options in more detail in fixed vs variable vs split business loans.
Compare the Total Cost, Not the Headline Rate
The advertised rate is only part of what a business loan costs. Set-up costs, ongoing fees and the loan term all change what you pay over its life.
That’s what a comparison rate is for. Moneysmart describes it as a rate that helps you “work out the true cost of a loan”, combining the interest rate with most fees and charges.
When we compare business loan options for a client, we line up the same points for each lender:
- Upfront and ongoing fees
- The interest rate, and whether it's fixed or variable
- The term, and what it would cost to repay early
- Whether security or a guarantor is required
- Any conditions attached to the loan
Your current bank isn’t the only option, and business.gov.au suggests checking non-bank lenders as well as banks. If the need is cash flow rather than a one-off purchase, our cash flow loans page explains how that type of finance works.
Final Thoughts: What Do Business Owners Need to Know Before Borrowing in 2026?
In short, business loan rates in Australia in 2026 have followed the cash rate up, and your own application still decides the rate you’re offered. Security, trading history, existing debt and how the loan is structured all shape it, and some of that is within your control.
Prepare first. Compare second.
Credit Hub is a finance broker based in Melbourne’s west. We compare business loan options across our lender panel and help you put together an application that presents your business clearly. Our team brings 20+ years of industry experience and $1 billion+ in loans settled, backed by 5-star Google reviews.
Every application remains subject to the lender’s assessment. If you’re weighing up a business loan, contact our team and we’ll talk through your options before you apply anywhere.
FAQ
What is a good interest rate for a business loan?
There isn’t one figure. Business loan rates in Australia in 2026 vary with security, trading history and loan size, so a good rate is one you’ve compared across several lenders on the same amount, term, security and fees.
Which bank in Australia is best for business loans?
No single lender is best for every business. Lenders weigh security, trading history and loan purpose differently, and business.gov.au suggests looking at non-bank lenders as well as banks.
Can I get a business loan without security?
Yes, unsecured business loans exist. Without security the lender relies more on your business’s financial health, so ask how each offer changes with and without security before you decide.
What documents do I need to apply for a business loan?
Requirements vary by lender and loan. Expect to provide identification, a business plan, financial reports including cash flow statements, forecasts, any lease agreements and your personal financial information. The business.gov.au guide lists what lenders commonly ask for.
Do brokers charge for business loans?
Some brokers charge a fee, while others are paid a commission by the lender. Credit Hub is paid a commission by the lender, and a brokerage fee may also apply to personal and commercial loans. Our Credit Guide sets out how we’re paid, and you can ask us to explain it before you go ahead.
Talk to Credit Hub About Your Business Loan
Call 1300 782 944 or send us your details, and our team will walk you through your options.
Disclaimer: The information in this article is general in nature and does not take into account your objectives, financial situation or needs. Credit Hub recommends checking the details with a qualified professional before making financial decisions.
