Business Line of Credit & Overdraft Facilities
Flexible, fast-access funding that keeps your business moving — even when cash flow doesn’t.
Key Takeaway
Perfect for businesses wanting stability, control, and liquidity without taking on a full traditional loan.
You only pay interest on the funds you actually use, not the entire limit.
Facilities can be unsecured or secured, depending on limit size and business profile.
They’re ideal for covering payroll, inventory, supplier bills, and short-term cash-flow swings.
What is a Business Line of Credit & Overdraft?
A Business Line of Credit is a revolving facility that lets your business draw funds as needed, repay them, and use them again — just like a credit card, but built for business cash flow.
A Business Overdraft sits behind your everyday account and lets you dip into a negative balance up to an approved limit, giving you instant access to cash for short-term needs.
Both tools give businesses on-demand liquidity, without locking you into a fixed loan structure.
In plain English: You only borrow what you need, when you need it — and only pay interest on what you use.
Types of Facilities Available
Unsecured Line of Credit
- No collateral required
- Based on revenue, trading history, and cash flow
- Ideal for smaller limits or fast access
Secured Line of Credit
- Backed by property, equipment, or other security
- Higher limits and sharper pricing
- Great for businesses wanting larger revolving facilities
Transactional Overdraft
- Linked to your business transaction account
- Access cash automatically when your balance hits zero
- Flexible, simple, and instant
Non-Bank / FinTech Overdrafts
- Fast approvals, straightforward assessments
- Ideal for short-term cash movements
- Can be unsecured or revenue-based
Why Businesses Use These Products
Because they’re flexible, predictable, and built for real-world cash flow, not rigid loan schedules.
Businesses choose Line of Credit & Overdrafts because they:
- Offer revolving access — draw, repay, redraw
- Charge interest only on what’s used
- Support ongoing operational needs
- Remove stress from slow debtor cycles
- Provide instant liquidity
- Keep cash flow stable and predictable
- Reduce the need for constant short-term loans
- Allow businesses to seize opportunities without delay
In short: they’re the financial safety net every growing business needs.
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Let’s get the Commercial Asset Finance you are after
Damian Van Raay
Director – Asset & Commercial Finance
Who Qualifies?
Qualification varies by lender, but generally businesses need:
- Active ABN (6–12+ months preferred)
- Consistent trading revenue
- Healthy bank account behaviour
- Clear ability to manage repayments
- Good credit conduct (cleaner = better limits & rates)
- BAS, financials or collateral may be required for higher limits
FinTech overdrafts often approve on just:
ABN
6 months trading
3–12 months bank statements
Banks will require more detail, especially for secured limits.
Commercial Lender Options
Your Line of Credit and Overdraft Questions, Answered.
Whether you’re exploring a Line of Credit or Account Overdraft Facility, we’ve made it simple to understand how it all works.
Here, VIM Capital’s business loan specialists break down the most common questions Australian businesses ask — in plain English, not finance jargon.
A line of credit is a standalone revolving facility; an overdraft attaches to your business bank account and activates automatically when your balance drops below zero.
No — you only pay interest on the portion you actually use.
Both options exist. Smaller limits can be unsecured; larger limits usually require security.
FinTech options can approve same day. Banks take longer, usually a few days to a few weeks depending on security.
Yes, as long as it relates to running your business — payroll, stock, suppliers, working capital, etc.
Unsecured limits often range from $10k–$250k; secured lines of credit can stretch well into the millions.
The application may trigger a credit check, but usage itself generally doesn’t harm credit unless you miss repayments.
No — repayments are flexible and based on how much of the facility you’ve used.
Most lenders want 6–12 months of trading history, but some short-term unsecured overdrafts may allow earlier access.
Because you’re not locked into a lump sum or fixed repayments — you borrow only what you need, exactly when you need it.
Have a question? Just ask!
One of our lending specialists will be in touch
