Last reviewed October 2026 · SME Finance Group
One bank. One answer? Think outside the box.
The groupings in this guide are descriptive only—not official classifications or quality ratings. Lending requirements vary.
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More than one place to look.
When it’s time to borrow for your business, it’s easy to assume your bank is the only place to look. But there’s a wider market of banks, non-bank lenders and private lenders, and each works differently.
The right fit depends on your timing, security and circumstances. Here’s a practical guide.
Four common options.
The lowest rate is not always the best fit. Compare cost with speed, flexibility, documentation and opportunity.
01 · Bank lenders
Competitive pricing, detailed assessment
Established businesses with strong financials and flexible timing.
- Relative cost: Generally the most competitive for borrowers who meet bank criteria.
- Documentation and credit: Typically two years of financials, a full credit assessment and a clear ATO and credit position.
- Timing: Generally the longest process; commercial applications can take months rather than weeks.
- Other considerations: ATO portal access and a detailed commitment schedule may be required.
02 · Non-bank lenders
More flexibility, faster turnaround
Businesses wanting more flexibility or a faster turnaround.
- Relative cost: Typically priced above comparable bank lending, with lender and legal fees potentially applying.
- Documentation and credit: Financials are generally required, although issues may be considered case by case.
- Timing: May be faster than bank finance; suitable transactions can sometimes complete in weeks rather than months.
- Other considerations: ATO portal access or a commitment schedule may still be required.
03 · Specialist non-bank
Alternative documentation, shorter terms
Businesses needing shorter-term funding or alternative documentation.
- Relative cost: Generally higher than mainstream bank and non-bank lending, with legal fees usually applying.
- Documentation and credit: Alternative evidence may be accepted, and ATO debt or credit issues may be considered.
- Timing: Often assessed more quickly where the application and exit strategy are clear.
- Other considerations: Check minimum interest periods and early repayment charges.
04 · Private & bridging
Urgent, security-backed funding
Short-term funding gaps or time-sensitive transactions, generally under 12 months.
- Relative cost: Usually the highest-cost option, with establishment and legal fees in addition to interest.
- Documentation and credit: Often focused on the available security and proposed exit strategy.
- Timing: Potentially the fastest option; suitable transactions may complete in days or weeks.
- Other considerations: A clear repayment or refinance strategy is essential.
Legal costs and advice: Legal fees may apply to non-bank, specialist and private lending. Independent legal advice is commonly required, depending on the lender and transaction.
Compare the whole structure.
The right choice depends on:
- What you’re funding
- How quickly you need it
- Your ability to repay
- The security available
- Total interest and fees
- Your exit strategy
It’s a trade-off between cost, speed, flexibility and opportunity.
Most borrowers start by looking for the most competitive interest rate, whether it’s for working capital or a home or commercial property. But the lowest rate isn’t always the best fit.
Bank applications can take time and require extensive documentation; approval is never guaranteed. If funds are needed quickly for working capital or a time-sensitive opportunity, a non-bank or private lender may provide a faster result, although usually at a higher cost.
Verification requirements still apply.
Whichever option you explore, expect applicable Know Your Customer and Anti-Money Laundering checks. These may include verifying borrowers and beneficial owners, business or trust structures, the purpose of the borrowing and, where required, source of funds.
Alternative documentation does not mean these checks are waived. Requirements vary with the lender and transaction.
Discuss your business finance needs.
SME Finance Group can explore options across a wide range of bank, non-bank and private lenders, explain the costs and help identify a suitable structure.
Or call 1300 275 763.
General information only. Rates, fees, lending limits and timeframes are indicative and vary by lender and circumstances. Finance is subject to assessment and approval. Interest, fees and charges apply. Consider total costs, repayment obligations and exit conditions. Default on a property-secured loan may put the property at risk. Last reviewed October 2026.