How to Refinance a Business Loan in Australia (2026): Rates, Costs, How It Works and When It Pays

How to Refinance a Business Loan in Australia (2026): Rates, Costs, How It Works and When It Pays

Where the statement path does not fit, because the business is younger than a year or the lending is new rather than a refinance, the low doc and no doc lenders take over, at a higher rate and a lower loan-to-value cap. Our low doc and no doc business and commercial loans guide compares what each publishes, including the 12-month facilities that run on the security and the exit rather than on tax returns.

What does it mean to refinance a business loan?

To refinance a business loan is to pay out an existing business facility with a new one on different terms. The new lender, or your current lender on a repriced contract, advances the funds, the old loan is discharged, and from settlement the business repays the new facility instead. Nothing about the underlying business changes on the day; what changes is the price of its debt, the shape of its repayments, and what the lender holds as security.

Six reasons stand up in practice, and each one is a complete answer on its own:

• A lower interest rate. A business with several years of growth and spotless repayments behind it carries less risk than the start-up the lender priced at the beginning, and refinancing is how that improvement gets priced.
• Lower repayments or a longer term. Stretching a facility that was written short, or moving an overdraft that has become permanent working capital into term debt, cuts the monthly outgoing and steadies cash flow.
• Consolidating several facilities into one. A term loan, an equipment contract, a line of credit and an unsecured fintech loan can be rolled into one structure with one repayment and one set of fees.
• Releasing the family home or other personal security. Once the business holds assets of its own, the refinance can move the security onto those assets and take the house off the contract.
• Accessing equity for working capital or growth. Commercial property that has risen in value, or a loan that has been paid down for years, can be refinanced to draw funds without selling anything.
• Leaving a short term or high cost lender. Debt taken quickly at 15 to 20 per cent from an online lender can be refinanced onto bank or non-bank pricing once the business has the history to qualify.

Can you refinance a business loan?

Almost always, yes. A term loan against commercial property, an equipment facility, an overdraft that has quietly become permanent working capital, a loan the bank wrote five years ago against your home: all of it can be moved, restructured or consolidated. The question that matters is not whether a refinance is possible but whether it pays, and that comes down to what the new structure saves or unlocks against what the move costs.

The reason most business refinances never happen is not eligibility. It is that the original loan took months of paperwork, and owners assume the refinance will too. That assumption is out of date, and the lean documentation path below is why.

Why refinance a business loan? The five moments refinancing pays

1. The rate no longer reflects your risk

Business pricing is set at approval and rarely revisited by the lender. A business that has grown, banked profits and repaid cleanly for years is a better risk than the one that signed the original documents, but the rate does not move unless someone makes it move. Repricing or refinancing resets the loan against the business you are now.

2. The security no longer matches the loan

Many business loans begin life secured against the family home because that is what got the deal done. Once the business has assets and history of its own, that security can often be renegotiated, and getting the house back is reason enough for many owners, entirely apart from price.

3. The facilities have sprawled

An overdraft here, an equipment loan there, a credit card that became working capital, and often a fast online loan taken in a pinch still working at premium pricing: sprawl is expensive and hard to manage. Consolidating facilities into a deliberate structure usually saves money and always saves attention.

4. A fixed term is ending

The end of a fixed period is a free look at the whole market. The lender will offer a rollover; the rollover is priced for convenience, not competition. This is the cheapest possible moment to test everything, because break costs are off the table.

5. The bank has changed its appetite

Lenders drift in and out of industries and loan types. If your bank has cooled on your sector, service and pricing follow. Moving to a lender that wants your industry changes the entire relationship, not just the rate.

Should I refinance my business loan?

Refinancing is likely to pay if most of these are true:

• Your rate is more than about half a percentage point above what comparable businesses are being approved at today.
• More than two years remain on the loan, so the saving has time to outrun the switching costs.
• The business has traded profitably for two years, or has twelve clean months of repayment history on the existing loan.
• You are still paying an online or short term lender at 15 per cent or more for debt that a bank or non-bank would now write.
• The family home is on the contract and the business now has assets that could stand in its place.
• You hold three or more facilities with different lenders, review dates and fee schedules.

What are business loan refinance rates in Australia right now?

Three things decide where inside that range a business lands. Security first: property secured lending is priced several points below unsecured cash flow lending, and commercial security sits a little above residential security at most lenders. Size second: the ING portal above prices a $1 million facility 45 basis points cheaper than a $600,000 one. Documentation third: full financials open the sharpest pricing, the twelve month statement path below costs a little more, and the low doc and no doc lenders price higher again. The published figures, and how lenders step pricing by loan to value ratio, are tracked on our commercial property loan rates page.

How much can refinancing a business loan save?

The same arithmetic answers the question owners type into Google most often, what is the monthly payment on a $50,000 business loan: at 9.00 per cent it is $1,589.99 a month over three years or $1,037.92 over five; at 7.24 per cent it is $1,549.35 over three years or $995.73 over five. On a loan that size the rate matters less than the term and the fees, which is why small facilities are usually consolidated rather than refinanced on their own.

Run your own numbers

The arithmetic is the same as any lending: every quarter of a percentage point on $500,000 of business debt is roughly $1,250 a year, and sprawled facilities usually leak more than a quarter point through mismatched pricing, unused limits and fees that were never renegotiated. Put your own figures through the business loan refinance savings calculator to see what the gap on your balance is worth, and if part of your lending is fixed, the break costs guide covers the exit side so the comparison is honest.

Bring the output to the first conversation and we will pressure test it against what pricing desks are actually approving.

Can you refinance a business loan without tax returns? The twelve month statement path

The full-financials refinance asks for everything: two years of statements, tax returns, interim figures, forecasts. For an established borrower with a clean record, several lenders now run a shorter road: twelve months of clean loan statements and a statement of position. The statements prove the repayment behaviour; the statement of position shows what the business owns and owes. For the right file, that is the assessment.

It suits borrowers who are asset-solid and time-poor: the business is established, repayments are spotless, and the accountant-grade paperwork rebuild is the one thing standing between the owner and a better structure. It is not for every file, and where full financials tell a stronger story we will say so. Our guide to refinancing a commercial property loan covers the property-secured version of this path in detail, and the broader commercial lending guide maps the whole landscape.

The full detail of that path, including the two documents lenders accept and the businesses it suits, is on our business loans without tax returns page.

How do you refinance a business loan? How the process actually runs

1. Read the current contract. Fixed rate break costs, early exit fees, notice periods and any cross-collateralised security set the cost and timing of the exit.
2. Get the payout figure. The outgoing lender confirms the balance, accrued interest and discharge fee as at a settlement date.
3. Assemble the file. Full financials for the sharpest pricing, or the twelve month statement path where the trading history is clean and the refinance is like for like.
4. Compare on total cost. Rate, fees, term, security, covenants and reporting, across bank and non-bank lenders, in one facility map.
5. Apply and value. Credit assessment runs in days for statement path files and weeks for full assessments; property security needs a valuation.
6. Sign. Letter of offer, loan contract, guarantees and any new security documents, most of it now completed electronically.
7. Settle and discharge. The new lender pays out the old loan, the old mortgage is discharged, and the new repayments start on the agreed date.

1. Map what exists. Every facility, its rate, its security, its term, its break position. Most owners have never seen their lending on one page; the map alone is worth the meeting.
2. Decide the target structure. Cheaper is one goal; releasing the home, consolidating sprawl, or matching repayments to cash flow may matter more. The structure decision drives lender choice, not the other way around.
3. Match the lender. Appetite differs by industry, security type and documentation level. The right lender for a cafe fit-out loan and the right lender for a warehouse-secured term debt are rarely the same institution.
4. Assessment and approval. Lean-doc files move fastest; full-financial files take longer but can price better for complex situations. Either way, you keep trading; the paperwork runs beside the business, not on top of it.
5. Settlement and switch. The new lender discharges the old facilities, security swaps over, and the new structure goes live. Direct debits and guarantees get rechecked so nothing legacy lingers.

Which business loans can you refinance? What refinancing achieves, facility by facility

Can you refinance ATO debt into a business loan?

The reason it matters for a refinance is timing. A lender assessing your file will see the ATO balance in the accounts and in the integrated client account, and an unpaid tax debt with no arrangement in place is one of the quickest ways to have an otherwise strong application declined. Clearing it, or documenting the plan that clears it, is usually the first move in the sequence.

How much does it cost to refinance a business loan? The costs, honestly

The break even line. Divide the total switching cost by the monthly saving, and the answer is the number of months before the refinance is ahead. On the $300,000 example above, $4,000 of costs divided by a $194.86 monthly saving is about 21 months, so a loan with five years or more to run is comfortably ahead; the same $4,000 against a $305.90 saving is about 13 months. To answer the question people ask Google, how much it costs to refinance a $300,000 business loan: the honest reply is that it depends almost entirely on whether a fixed rate is being broken, and that on a variable facility the fees are usually a few thousand dollars against a saving of $2,300 to $3,700 a year.

A business refinance carries real costs and they should be on paper before anyone commits, our commercial refinancing costs guide itemises them: break costs if you are leaving a fixed facility early, discharge fees from the outgoing lender, establishment and valuation costs at the incoming one, and legal work where security changes hands. Whether refinancing costs are tax deductible for your business is a question for your accountant, and a good broker will hand your accountant the exact figures to rule on rather than a guess.

The discipline is simple: the projected saving or the structural win has to clear the costs with room to spare, on paper, before you move. When it does not, the written recommendation is to reprice with your current lender instead. Our same bank or switch guide covers exactly that decision.

Is business loan interest tax deductible?

The costs of setting up the new loan are treated differently from the interest. Establishment fees, valuation fees and mortgage stamp duty are borrowing expenses, which the ATO generally has a borrower claim over five years or the life of the loan if it is shorter, rather than all at once. Break costs on the old facility, and whether a particular refinance cost is deductible for your entity, are questions for a registered tax agent, and Everstone Finance hands your accountant the exact figures rather than a guess. The ATO’s deductions for other operating expenses page is the primary source.

How much equity do you need to refinance a business loan?

Equity also sets how much can be released. A commercial property worth $1.5 million with a $700,000 loan sits at 47 per cent LVR; a refinance to 70 per cent could lift the facility to $1.05 million and release about $350,000 for working capital or another purchase, at commercial property rates rather than unsecured rates. The valuation the incoming lender orders, not the figure on your balance sheet, is the number that counts.

What disqualifies you from refinancing a business loan?

Two softer factors also decide files. Lenders read the integrated client account and the bank statements as a story: regular ATO payments, no overdrawn days and a stable or rising turnover carry more weight than a single strong year in the financials. And industry appetite moves; a lender that will not touch hospitality this quarter may price it keenly the next, which is why the comparison has to be run at the time, across the panel, not remembered from the last loan.

The mistakes that cost businesses money

• Rolling the fixed term without testing the market. The rollover letter is priced for the borrower who will not shop. Even one competing quote changes the conversation.
• Leaving the home as security out of habit. Security release is negotiable far more often than owners assume, and nobody at the bank volunteers it.
• Refinancing the rate but keeping the sprawl. Moving three messy facilities to a new lender as three messy facilities wastes the move.
• Treating the overdraft as untouchable. A permanently drawn overdraft is a term loan wearing the wrong price tag.
• Waiting for the perfect year of financials. If the repayment history is clean, the lean documentation path may not need the perfect year at all.

Questions owners actually ask

Can I refinance a business loan that is secured against my house?

Yes, and this is one of the most common reasons owners come to us. Depending on the strength of the business and its assets, the refinance can sometimes restructure the security as well as the price, partially or fully releasing the home.

How long does a business loan refinance take?

Lean documentation files are measured in weeks; full financial assessments take longer, especially where property valuations are involved. The map-and-structure work at the start is days, and it tells you whether the rest is worth doing.

Will refinancing hurt the banking relationship?

A repricing request is normal banking. A refinance is normal competition. Lenders retain files they want by sharpening them, and a business that never tests its pricing is the one paying for everyone else’s discounts.

Can I consolidate an overdraft, equipment finance and a term loan together?

Often, yes, into a structure that matches how the business actually earns and spends. Whether consolidation is right depends on the mix; some facilities are worth keeping separate deliberately.

What if my financials are not ready?

Ask about the twelve month statement path before you rule anything out. Clean repayment history carries more weight than most owners expect.

What is the monthly payment on a $50,000 business loan?

At 9.00 per cent, the Reserve Bank indicator small business rate in August 2026, a $50,000 loan costs $1,589.99 a month over three years or $1,037.92 over five, principal and interest with no fees. At a published 7.24 per cent it costs $1,549.35 or $995.73. On a loan this size the term and the fees move the monthly figure more than the rate does.

How much does it cost to refinance a $300,000 business loan?

On a variable facility the switching costs are usually a few thousand dollars in total: a discharge fee from the old lender, an establishment fee and a valuation at the new one, and legal and registration costs where security changes. A fixed rate broken early can add a great deal more. Against a saving of $194.86 a month from moving 9.00 per cent to 7.89 per cent, $4,000 of costs is repaid in about 21 months.

Is interest on a business loan 100 per cent tax deductible?

Interest on money borrowed to produce assessable income is listed by the ATO as a deductible operating expense, so business loan interest is generally deductible in full where the whole loan is used in the business. If part of the money funded private spending, only the business share can be claimed. Loan establishment costs are borrowing expenses and are generally claimed over five years or the loan term if shorter. Confirm your position with a registered tax agent.

What disqualifies you from refinancing a business loan?

The usual blockers are missed repayments or dishonours in the last six to twelve months, an ATO debt with no payment plan, trading history under a year, a loss making year that the lender cannot see past, a property valuation that comes in below the loan, and a recent default or court judgment against a director. Most of these cure with time or a payment plan, which is why a declined file six months ago is often approvable now.

Can you refinance a business loan with the same bank?

Yes. Asking your current lender to reprice the facility is the simplest refinance of all, with no discharge, valuation or new documents. It works when the bank wants to keep the file and the gap between your rate and the market is modest. When the bank will not move, or the structure itself is the problem, switching lenders is the answer. Everstone Finance runs both options side by side and recommends whichever leaves more money in the business.

Do you need tax returns to refinance a business loan?

Not always. For an established business with a clean repayment history, some lenders will assess a like for like refinance on twelve months of loan statements and a signed statement of position instead of full financials. New lending, younger businesses and larger increases still need financials, and the low doc and no doc lenders cover the cases in between at a higher rate.

What are the options for refinancing a business loan?

Who qualifies for a business loan refinance?

To put a rate difference in dollars before the conversation, run the commercial refinance calculator: monthly saving, total interest over the term and the month the switch pays for itself.

How Everstone Finance refinances business loans

From there the process is ours to run: the payout figures, the lender conversations, the documents and the settlement, by phone and video across Australia. Owners who prefer to start with a number can use the calculator above, or book a fifteen minute call with a former banker and bring the loan statements.

Sources

• Reserve Bank of Australia, Statistical Table F5, Indicator Lending Rates, small business variable term and overdraft, August 2026 data, read 25 September 2026: rba.gov.au/statistics/tables
• Commonwealth Bank, BetterBusiness Loan, rates current as at 9 October 2026, read 17 October 2026: commbank.com.au
• ING broker portal, commercial loans, rates last updated 12 October 2026, read 17 October 2026: broker.ing.com.au
• La Trobe Financial, full doc commercial loan, read 25 September 2026: latrobefinancial.com.au
• Moula, refinance your business debts, read 25 September 2026: moula.com.au
• Australian Taxation Office, deductions for other operating expenses, read 25 September 2026: ato.gov.au

Related guides