Here are the things that affect the interest rates on your company loan, whether you run a startup in Sydney or a firm in the country:
Your Credit Score: It’s very important to monitor your business and personal credit scores with Equifax. In 2025, people with scores over 700 may be able to get rates as low as 4–6%, while those with scores below 600 may have to pay 8–10%.
Loan Amount and Term: Loans of $100,000 or more or durations of 5 to 10 years frequently have higher rates because they are riskier. Loans for a short time that are less than $50,000 may have rates of 5 to 7%.
Collateral: Putting up property or equipment as collateral for a loan can cut the interest rate by 1–2% because it lowers the lender’s risk. Unsecured loans, which are prevalent for small enterprises, are on the rise.
Business Revenue and Cash Flow: A steady income (such $200,000 or more a year) shows that the business is reliable, which could lower rates to 4.5–6%. They might go up to 9% if cash flow is unpredictable.
Risk in the industry: High-risk areas like construction have rates of 7–10%, while stable areas like healthcare may only have 4–6%.
Economic Conditions: The RBA’s 3.85% rate has an effect on market patterns, and after the cut, rates for secured loans will drop to 4–7% in 2025.
Policies of Lenders: Banks like ANZ or Commonwealth might give 5% to their best clients, whereas non-bank lenders might charge 8–12% for those that are riskier.
Why These Things Are Important
These things let lenders know how risky you are. A strong credit score and good collateral can lower the interest rate by a few percentage points, which can save you hundreds of dollars on a $100,000 loan over five years. Because rates can be very different, customising your application by raising credit, giving security, or showing income might make a big difference.
How to Get Lower Rates
Get Better Credit: Pay your invoices on time and pay off your debt to raise your score.
Offer Collateral: Use your assets to get better terms.
Compare deals from ASIC-regulated lenders.
Show Stability: Give precise financials to show that you can be trusted.
Why work with Sri Finance?
You might say, “That’s too much for me, mate!” That’s when Sri Finance comes in! We look at your business profile, find the best lenders for you, and work out the lowest interest rates on business loans in Australia. Call us!
In conclusion
In Australia, the interest rates on business loans depend on your credit score, the terms of the loan, the collateral, your revenue, your industry, economic trends, and the policies of the lender. If you follow Sri Finance’s expert advice on these things, you’ll be able to get the greatest bargain. Are you ready to save? Please get in touch with us right away!
