A limit on the account you already use, in place before the busy month.
- Indicative assessment within 2 business days, with most limits live in 1 to 4 weeks
- Overdraft limits from $20K to $2M, unsecured or secured against property
- Sole traders, partnerships, companies and trusts that trade through a business transaction account
- Seasonal stock, a larger contract, and wages and super leaving the account every pay run
- Full-doc (tax returns), low-doc or alt-doc (BAS, bank statements or an accountant's letter instead) options across our 90+ lender panel
Some months are easy to see coming. Stock for the Christmas trade gets paid for in October. A new contract needs materials and labour weeks before the first invoice is paid. Since 1 July 2026, super also leaves the account with every payday, not once a quarter. A business overdraft is a limit on your everyday business transaction account. When the balance drops below zero, the account keeps working up to that limit, and every deposit brings it back. Interest applies only to the amount overdrawn. Arranging it before the busy month means the limit is there on the day the payments start. Joseph Farhat and his team look at your account, your turnover and the size of the dip, then tell you plainly what limit is achievable and with which lenders.
Who we can help access finance
- ✓Retailers and wholesalers paying for seasonal stock a month or two before the selling period begins.
- ✓Trades and contractors who have won a larger job and need to carry materials and labour until the first progress payment.
- ✓Employers whose wages, PAYG withholding, the tax taken from wages, and super now leave the account on every pay run.
- ✓Sole traders who run the business through a transaction account in their own name and want a limit set against it.
- ✓Businesses whose current overdraft was set when turnover was smaller and now want a higher limit before the next peak.
- ✓Owners with customers on 30 or 60 day terms who need the account to cover supplier bills in the meantime.
How Business Overdraft Works
An overdraft is attached to a business transaction account, the same one your customers pay into and your bills come out of. The lender approves a limit, for example $150,000, and the account can then run into a negative balance up to that amount. There is no drawdown request and no transfer between accounts. Each deposit reduces the overdrawn balance automatically, so the limit frees up again as soon as money comes in. Interest is usually calculated daily on the overdrawn balance and charged monthly. Many lenders also charge a limit fee on the full approved amount, whether it is used or not.
An overdraft, a line of credit and a term loan do different jobs. An overdraft lives inside your everyday account and suits short dips that clear within weeks. A line of credit is a separate facility you draw from and repay into, which keeps borrowed money apart from trading money and is often offered at larger limits. A term loan pays a lump sum once and is repaid on a set schedule, which suits a one-off purchase rather than a recurring gap. If part of the overdrawn balance never returns to zero across the year, that part may sit better on a term loan.
Smaller limits are often unsecured, supported by a guarantee from the owner or directors. Larger limits are usually secured against property, which brings the rate down. Because an overdraft has no fixed end date, lenders review it, most commonly once a year. MoneySmart flags that facilities with no end date, such as overdrafts, need extra care when you are signing a guarantee, and suggests getting independent accounting and legal advice first. Joseph Farhat and his team compare overdraft limits, and non-bank facilities linked to your account, across 90+ bank, non-bank, and specialist lenders. We are a finance broker, not an accountant, so your accountant is the right person to confirm how large a buffer the business needs.
What Lenders Assess for Business Overdraft
How the account has been run
returned payments, unarranged negative balances and the general pattern of the transaction account over the last 6 to 12 months.
The size of the swing
the lowest and highest balances across the year show how large the limit needs to be and whether the account returns to credit.
Money flowing through the account
an overdraft is sized against turnover, so lenders look for most of the business income to be banked there.
The reason for the limit
seasonal stock, a signed contract or the timing of wages and super each show the lender when the balance will recover.
Security and guarantees
unsecured limits are usually smaller and need a personal guarantee; a property-secured limit can be larger and priced lower.
Financial statements
bank overdrafts commonly ask for the last 2 years of financials and tax returns, with management accounts for a larger limit.
Other debts and tax position
existing facilities, equipment finance and whether lodgements and ATO payments are up to date.
The Business Overdraft Process: What to Expect
- 1Tell Joseph Farhat and his team when the busy period starts, how far the account dips and the limit you have in mind. You get an indicative view within 2 business days of sharing your statements.
- 2Gather what the likely lender needs: recent transaction account statements, BAS or financials, and details of any property offered as security.
- 3We choose where to place the limit, a bank overdraft on a new or existing account or a non-bank facility linked to your account, and lodge one complete application. Each credit enquiry is recorded on your file, so we keep the number low.
- 4The lender issues an offer showing the limit, rate, limit fee, security, guarantees and review date. We walk through each item with you, and any guarantee goes to an independent lawyer before you sign.
- 5The limit goes live on the account. We note the review date and stay in touch, so an increase for the next season can be raised at the review rather than at the last minute.
Indicative Finance Options
| Lender Type | Indicative Rate | Security | Typical Loan Range | Loan Term | Speed to Funding |
|---|
| Bank | From ~8.5% p.a. | Property security, or unsecured for smaller limits | $20K to $2M | Ongoing, reviewed annually | 1 to 4 weeks |
| Non-Bank Lenders | From ~13% p.a. | Usually unsecured, with a personal guarantee | $20K to $500K | Ongoing, reviewed every 12 months | Within 1 week |
| Private Finance | Not typically offered as an overdraft. A short-term property-secured loan may suit unique scenarios. |
Indicative figures only. Actual rates and terms depend on your project, financial position, property location, and lender assessment at the time of application. Rates are subject to change.
Why borrowers choose Settled With Joe for a business overdraft
We represent you, not the lender
Joseph Farhat and his team act in your interest from the first call until the limit is live on the account.
Sized to the real dip
we look at your lowest balances across the year, so the limit you ask for matches the gap rather than a round number.
The right place for the limit
an overdraft on your transaction account, or a non-bank facility linked to it, depending on your documents and timing.
Fees beyond the rate
limit fees, establishment fees and review fees differ between lenders, and they add up on a facility that runs for years.
One complete application
we approach the lender most likely to approve your file first, so fewer enquiries are recorded on your credit file.
90+ lenders on one panel
bank, non-bank, and specialist lenders, so a full set of financials can go to a bank at a sharper rate, and a shorter trading history still has options.
Private finance for unique scenarios
where bank and non-bank lenders are not the right fit, we can introduce you to private finance options.
Usually no direct cost to you
as a broker we are typically paid by the lender on settlement.
An honest answer early
if the busy month is 6 weeks away, talk to us now and we will tell you what is realistically achievable before it starts.
Frequently asked questions
What is a business overdraft?
A business overdraft is an approved limit on your business transaction account that lets the balance go below zero. You use it by paying bills from the account as normal. Deposits reduce what is owed straight away, and the limit is free again for the next dip. Interest applies only to the overdrawn balance, though many lenders also charge a fee on the full limit. It has no fixed end date and is usually reviewed each year.
Overdraft or line of credit: which suits my business?
It comes down to where the buffer sits and how big it needs to be. An overdraft works inside the account you already trade from, so there is nothing to transfer and short dips clear as customers pay. A line of credit is a separate facility: you move money across when you need it and pay it back when cash comes in. That separation makes borrowed money easier to track, and some lenders offer larger limits on a line of credit. Joseph Farhat and his team can put the two side by side for your business, including the fees on each.
Can a sole trader get a business overdraft?
Yes. Sole traders can apply for an overdraft on a business transaction account held in their own name. A sole trader and the business are the same legal person, so the limit is your personal debt. Lenders look at your tax returns or BAS, the account history and any security you offer, much as they would for a company. Where the overdraft is for business purposes, it sits outside the National Credit Code, which covers credit used mainly for personal, domestic or household purposes.
What happens at the annual review?
The lender looks at the facility again, usually once a year. It may ask for updated financials or BAS, recent statements and confirmation that tax lodgements are current. It then confirms the limit, adjusts it, or updates the rate, fees or conditions. The review is also a sensible time to ask for a higher limit for the next busy period, because the lender is already looking at fresh figures. If turnover has grown, Joseph Farhat and his team can prepare the case for an increase before the review date, or compare it with other lenders at the same time.
How long does a business overdraft take to set up?
An unsecured overdraft on an account with a clean history can often be approved in 1 to 2 weeks. A property-secured limit takes longer, commonly 2 to 4 weeks, because the property has to be valued and the security documents prepared and registered. Non-bank facilities linked to your account can be quicker, often within a week. We give you an indicative assessment within 2 business days of receiving your statements. Starting 4 to 6 weeks before the busy month leaves time for a secured option if it suits.
Can I get a business overdraft with low-doc or no-doc?
Low-doc is often possible. Some lenders size a limit from 6 to 12 months of bank statements and BAS instead of full financials. Bank overdrafts generally ask for full-doc and price more sharply in return. No-doc is uncommon for an overdraft on a transaction account, and where it is available it usually takes the form of a property-secured facility. For complex situations, we can introduce you to private finance options. Joseph Farhat and his team will tell you which documents open which lenders before you gather anything.
Do you work with borrowers with bad credit?
Yes, we do. A default, a late payment listing or a past arrangement with a creditor does not end the conversation, and there is no judgement from us. Many owners picked up a listing in a year that went differently from the plan. For an overdraft, lenders weigh how the transaction account has run in recent months and how reliably the balance comes back. Some lenders on our panel give that account history more weight than the credit file and set the price to reflect the risk. Tell us at the start, so the first application goes to a lender that will consider it and your file does not collect extra enquiries. Joseph Farhat and his team will give you a straight answer on what is possible before anything is lodged.
Why work with Settled With Joe to arrange your business overdraft?
You have one conversation with us, and we approach the lenders. Most of the people we help with overdrafts are self-employed business owners, sole traders and company directors who can see a busy period coming: stock to buy before the season, a contract starting next month, or wages and super leaving the account every pay run. We hear these situations every week and there is no judgement. What counts for an overdraft is how your transaction account runs and how quickly the balance recovers. Our panel covers 90+ bank, non-bank, and specialist lenders, so a full set of financials can go to a bank at a sharper rate, and there are still options when time is short or the scenario is complex. We are based in Sydney and help businesses Australia-wide. Joseph Farhat and his team will tell you early and honestly what limit is achievable before your busy month starts.
Do you give financial advice?
No. We do not guide you on your finances, nor give financial advice. We focus on outcomes and solutions of presenting your unique scenario to the right lender so you can access funding in a timely and compliant manner.
Do you help with business overdrafts outside Sydney?
Yes. Settled With Joe is based in Sydney and arranges business overdrafts Australia-wide, for metro and regional businesses alike. We work with clients in Sydney, Melbourne, Brisbane, Perth, Adelaide, and Canberra, and in regional centres including Newcastle, Wollongong, Geelong, Gold Coast, Sunshine Coast, and Toowoomba. Where property is offered as security, its location can change which lenders will consider it. Joseph Farhat and his team will match the limit to lenders on the panel that suit your business and region.
