Skip to Content (Press Enter)

Business Line of Credit

Only pay for what you actually use

Get flexible access to revolving capital from $5,000 - $500,000
Apply Now
Graph showing interest rate reducing over time

It's a low-fee Line Of Credit

Are you in need of ongoing access to funds to help your business’s cash flow or simply want the flexibility to jump at opportunities as they come up?

Think of it as a business overdraft, similar to a credit card, where you get a set limit and can withdraw funds as you need them. Easy as! As long as you stay within your limit you can withdraw as much or as little as you wish.

With no drawdown fees or ongoing costs, our new, improved, Low-Fee Business Line of Credit gives you full transparency on your repayment schedule, so you know exactly how much you need to repay at any given time.

Only pay for what you borrow

The best thing is that you only pay interest on what you actually borrow. Let’s say your limit is $150,000 and you borrow $10,000, then you would only pay interest on the withdrawn $10,000, not the full $150,000.

Funds right at your fingertips

With our user-friendly customer portal, managing your funds has never been easier. Whether you're at home, in the office, or on the go, you have the flexibility to drawdown funds at any time from anywhere, with an internet connection.

Managing your funds via customer portal

Why you’ll love our Line of Credit

Flexible access to business funds

An ongoing credit facility with repayment terms of up to 5 years

Know how much you need to pay

Fully transparent repayment schedule that is updated every time you withdraw funds

Pay less fees

Only pay a one-off establishment fee based on your limit. No other hidden fees

Here's how it works:


Step 1

Apply online in just minutes


Step 2

Get an outcome within a few business hours.


Step 3

Get your funds on the same business day. It’s that easy!

Are you ready to apply for business funding?

You’re only a few online steps away from submitting your business finance application with Lumi.

Tick the boxes to check if you’re ready to apply.

Min 6 months in business
Active ABN or ACN
Min $5,000 monthly revenue

Receive a lending decision within just a few hours

All About Business Line of Credit

Even if your business doesn’t need a large injection of cash all at once, you might find some things are financially out of reach, from time to time. If so, a business line of credit may be a great solution for you. With a form of convenient, flexible, ‘revolving’ capital, you can borrow the money you need, when you need it.

What is a Business Line of Credit?

When you have a business line of credit, you can borrow a certain amount of capital annually, just as with personal credit. You make payments only on the credit you've actually used. This can help you manage cash flow shortages or cover surprise costs until you have the funds. You won’t have a regular monthly payment schedule as you would with a long term or short term loan but there usually are minimum monthly payments required.

A business credit line can be secured or unsecured and it can be easier to get compared to other types of business loans. It should not, however, be used for long-term investments or major purchases. Businesses should be able to repay promptly as the interest and late fees can compound quickly with a line of credit.

How much can I borrow?

Rates, terms and limits for business credit lines vary. The interest rates on lines of credit are generally lower than those of credit cards, with higher limits. They are based on the bank or financial institution’s prime rate, plus a premium. Interest is charged as soon as money is borrowed, so a business can set up a line of credit as a safeguard, with incurring interest. There may, however, be a setup fee and an annual fee to keep the credit available.

The amount you can borrow is typically based on accounts receivable and current inventory but usually less than $500,000. A secured business line of credit typically comes with a higher credit limit and lower rates.

How does a business line of credit work?

Apply - You can get a line of credit through your bank and most national and regional banks as well as many larger credit unions offer business credit lines.

Get approved - Getting a credit line depends on your business’ creditworthiness and your personal credit history and score.

Tap into your funds - Draw down or withdraw funds on your line of credit any time to help your business grow.

Business line of credit vs Business credit card

A business line of credit may sound the same as a business credit card. There are, however, a number of differences between the two:

Business line of credit Business credit card
Can be secured or unsecured (collateral required for secured line of credit) An unsecured loan based on your personal credit history
Tap into the line of credit by making a direct deposit to your checking account, or by using a debit card linked to the account As it works almost exactly like a personal credit card does, use the card to pay for business-related purchases
Minimum monthly payment (based on interest charged and average daily balance) Minimum balance to be paid each month and interest charged for late payments
No cash advance fees Expensive cash advances
You can pay off your balance and borrow again as often as you’d like You can avoid interest charges by paying your statement balances in full
Helps to build a credit history for your business Based on your personal credit history
Does not include rewards or benefits You can receive rewards for your business spending such as airline points
May have opening, renewal or maintenance fees There is usually a joining fee or renewal fee

6 reasons why businesses may open a line of credit

There are a number of reasons why a business might apply for a line of credit, whether to take advantage of strategic investment opportunities, meet working capital needs or even as a safeguard.

Here are a few common reasons why businesses might need a credit line:

  • You’re a seasonal business steering through the quiet months or preparing for the busy season
  • You’re a high-volume, small dollar sales business and want to better manage cash flow
  • You’re looking to innovate or invest in new technology or equipment, purchase inventory, materials or supplies
  • Your credit score is not high enough for a traditional bank loan
  • For payments to suppliers who won’t accept credit cards or who charge additional fees for credit card use
  • You have an earnings history but not enough to qualify for a traditional loan
  • You are looking for opportunities to build your business credit.

4 expert tips to know about business line of credit

  1. Remember that credit is a form of debt
    Businesses must be realistic about their ability to repay what they borrow.
  2. Ask about other charges and late fees
    These can add up quickly if you’re not careful!
  3. Consider your risk level
    Applications are assessed on case-by-case basis but your chances improve if you demonstrate experience and are operating in a lower-risk industry.
  4. Put your best foot forward
    Make sure you have the necessary documents available before applying, including bank statements, profit/loss statements, your credit score and tax returns.

Still not sure if a business line of credit is right for you? Compare to a small business loan to learn more.

Got more questions about your loan?

Call us now 1300 005 864