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On a small screen, scroll the table sideways to see every column.
| Compare | Ask a bank | Ask a non-bank lender |
|---|---|---|
| Product fit | Is a term loan, overdraft or asset facility available? | Is the product designed for this purchase or cash gap? |
| Assessment | What information is required for this application? | What bank data, records and checks will be used? |
| Funding date | What must happen before settlement? | Does the advertised speed assume complete documents? |
| Price | What are the full fees and repayment schedule? | Is the price an annual rate, monthly rate or fixed charge? |
| Risk | Which assets and guarantees are required? | Which assets and guarantees are required? |
Compare like with like
A five-year loan secured by property cannot be judged against a twelve-month unsecured offer using the repayment amount alone. Start with the same amount received, loan purpose and repayment horizon. Then compare total payments, security, flexibility and the work needed to settle.
Banks and non-bank providers both have credit policies. A business that does not fit one product may fit another, but a decline does not establish that the next lender will approve it. Nor does a bank relationship guarantee the best price.
Shortlist products before comparing brand categories
Begin with the purpose. A bank's asset facility, a non-bank term loan and an invoice facility can all produce cash, but they fund different risks and use different repayment structures. Identify the required amount, when it is needed and the receipts expected to repay it, then look for products accepting that situation.
Check eligible business structures, trading history, industry and security before comparing price. An attractive published rate on an ineligible product is not a usable alternative. Conversely, do not assume a longstanding banking relationship means an offer will fit without another assessment.
For a business with several accounts, property security and a larger project, coordinated banking may have practical value. For a straightforward requirement, a narrower product and digital process can be convenient. Those are service differences to evaluate, not evidence that one category is always cheaper or better.
Give each provider the same borrowing brief
Specify the cash required after deductions, intended term, purpose, preferred payment pattern and any final balance. Present the same debt list and trading information. If one provider changes those assumptions, mark the difference beside its quote rather than treating the result as directly comparable.
For illustration, a $40,000 net advance repaid over two years cannot be compared fairly with a $40,000 headline loan that pays only $38,800 after fees and runs for three years. Both the available cash and repayment period changed. Ask for an adjusted quote or compare the full cash flows and remaining balances at the same date.
What speed is worth
Consider an illustrative stock purchase that would add $4,000 to profit if completed in time. If faster finance costs $3,000 more than another workable option, most of the expected benefit disappears before allowing for sales risk. If delivery or demand disappoints, the loan payments remain due.
Ask for a realistic funding date after credit assessment, documentation, any valuation and settlement conditions. An application completed in minutes is not the same as cleared funds.
Look beyond the starting rate
Record establishment and service fees, how interest is calculated, payment frequency, any balloon, and the early payout amount. Ask whether a facility can be reviewed, reduced or suspended. A low monthly repayment achieved by extending the debt is a different proposition from a cheaper loan.
Read the guarantee and security documents even when the product is described as unsecured. Avoid making a decision from the lender's logo or the word “online”.
Separate application speed from settlement speed
An online form might be quick while the transaction still needs documents, verification, security or settlement arrangements. Ask for the earliest realistic funding date for your case and the conditions that could move it. If there is a supplier deadline, explain it before relying on a marketing statement about speed.
Confirm when the first repayment falls due. Funds arriving quickly does not necessarily mean the business has a long period before deductions start. A fast loan for a slow-paying contract needs a source for those intervening repayments.
The business.gov.au application guide recommends preparing the loan purpose and financial information before approaching a lender (checked 5 October 2026). That preparation also makes timing estimates more meaningful because the provider has fewer basic gaps to resolve.
Compare support after funding as well
Find out how to obtain a payout quote, report a problem or request a payment discussion. Check whether account information and statements are available in a form your business can use. For a facility reviewed periodically, establish who handles the review and what records will be required.
Review bank-data consent before connecting accounts. Ask which entity receives the information, the purpose of access and how ongoing access is managed. A convenient process is valuable when its boundaries are clear. The presence of an app or a branch is not, on its own, a measure of how the provider will deal with an unusual situation.
Know who is arranging the offer
A direct lender assesses its own products. A broker or matching platform can introduce you to providers on a panel. That may save work, but it changes the scope of the comparison: a panel is not automatically the whole market.
Ask who receives the application, who makes the lending decision and how the intermediary is paid. Keep a list of submissions and confirm when credit enquiries occur. A fast online form tells you little about those arrangements.
For a straightforward requirement, a direct quote from your existing bank can provide a useful reference alongside an eligible non-bank offer. For a complex acquisition or several existing securities, the value of experienced coordination may matter more. In either case, the recommendation should explain why the selected facility fits the purpose and deadline.
Compare actual bank and non-bank entry criteria
These examples were checked on 10 October 2026. They show why the bank/non-bank label is insufficient to predict eligibility or price.
| Example | Published entry point | What still needs assessment |
|---|---|---|
| NAB QuickBiz Overdraft | $5,000–$50,000; ABN for at least 12 months, $75,000 annual turnover and GST registration | Business structure, acceptable records and credit criteria. Published variable rate 16.50% p.a. plus 1.75% p.a. service fee on the limit. |
| Prospa Small Business Loan | From six months trading and $6,000 monthly turnover; $5,000–$500,000 | Individual price, repayment capacity and security above the relevant limit. Prospa is a non-bank lender. |
| Shift Business Overdraft | Published variable rate 14.95%–24.95%, plus an annual facility fee | The rate offered, limit, guarantees and repayment schedule. Shift was formerly GetCapital. |
A bank product can also be unsecured, while a non-bank can require security. Separate the asset-security question from a director’s guarantee, and compare written offers using the same amount and term.