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What is a business overdraft? 

An overdraft is an approved extra amount of funds (or ‘line of credit’) attached to your business transaction account, which you can access whenever you need to. 

You pay back what you can, when you can - if the overdraft stays under the approved limit. Interest is charged on the overdraft balance until it is fully repaid.

Secured business overdraft


  •   Variable rates from 4.61% p.a.1
  •   Borrow the amount you need2
  •   Monthly line fee 1.20% p.a. of total limit3
  •   Only pay interest on the overdraft amount you use

Establishment and other fees apply.

Unsecured business overdraft


  •   Variable rates from 10.21% p.a.1
  •   You could borrow $5k - $75k2
  •   Monthly line fee 1.50% p.a. of total limit3
  •   Existing customers could get a decision in minutes 

Establishment and other fees apply.

Who can apply?

  • A business entity domiciled in Australia; or an individual 18 years and above or strata corporation domiciled in Australia and requires the funding for business or investment purposes other than investment in residential property. 
  • You need to be an existing Westpac business customer to apply for an unsecured business overdraft. Your business will also need to meet these requirements.

Why choose a business overdraft?

  • Flexible line of credit linked to your business transaction account 
  • Use or repay funds at any time (within the approved limit) 
  • Only pay interest on the overdraft amount you use 
  • Fast unsecured choice for existing customers. 

Benefits for your business

  • Quick access to extra funds to manage payments and expenses.

  • Expand your business by using extra funds to tender for larger jobs.

  • Negotiate better terms and discounts with suppliers using the overdraft for larger upfront payments.

  • Access funds to pay bills while you’re waiting to receive payments. 

How to apply

Check the eligibility criteria and have your business’ financials to hand.

What’s the difference between an overdraft and a business loan? 

A business loan is a lump sum paid into your transaction account. An overdraft is a pre-agreed amount you can access if your bank balance drops below zero. 

A business loan may suit your business if you need funding for things such as a business acquisition, start-up costs, capital investment, property acquisition or development, or refinancing other lending. 

A business overdraft may help relieve the strain on your cash flow, by supplying funds to cover expenses (such as buying stock and paying invoices and wages) until you get paid by your customers. 

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Secured and unsecured overdrafts: what’s the difference? 

If you want access to less than $75k, an unsecured business overdraft may suit your needs. An unsecured overdraft can provide more funds in your business transaction account, without you having to offer a specific asset (such as a property) as security against the ‘loan.’ Please note that a director’s guarantee will be needed if you’re a corporate borrower.  

If you’re looking for between $75K and $250K+, you could consider a secured business overdraft. This means we give you access to more funds in your business transaction account, and you provide security for the overdraft with a specific asset. 

Read more

Frequently asked questions

Some important points to consider before applying: 


Depending on your circumstances, business loans can be unsecured or require security in the form of residential property, commercial property, or other security. A guarantee will also be required by company directors for corporate borrowers. 

Credit history 

All borrowers, owners, directors, and guarantors must have clear credit records. All statutory payments and ATO liabilities need to be up to date and not under arrangement. 

Banking and borrowing history 

Existing bank accounts and lending products must be within their approved limits. 


Your business must be registered in Australia. 

More options

Business credit cards

Looking to borrow less than $20k? Simplify business expenses with a dedicated credit card. 

Business Recovery Loan​

Loans for businesses impacted by COVID-19 under the Government’s SME Recovery Loan Scheme.

Business loan

Borrow from $20k with flexible repayments.

Things you should know

Credit criteria, fees, charges, terms, and conditions apply. Talk to your banker for product details.  

1. Rates vary depending on a number of factors, such as the type of security provided. 

2. Eligibility, credit criteria and type of security determine how much you can borrow. 

3. Charged at the beginning of the month. Other fees may apply. 


Extra eligibility requirements for unsecured business overdraft 

For existing customers applying for unsecured business overdraft, your business will need to:  

  • Hold a Westpac business transaction account in the same name that you will use to apply 
  • Have traded for at least 12 months with a valid ABN or ACN 
  • Be registered for GST 
  • Turnover more than $75K annually 
  • Operating as a sole trader (aged 18 years or over) or a sole director company (where the sole director is also the sole company secretary). For company borrowers, the sole director must supply a director’s guarantee 
  • Be a tax resident of Australia, that is based, registered, and operating in Australia 
  • Only use the finance for business purposes and will not be used to finance other lending, start a business, fund a property development, or buy residential property 
  • Have less than $1m in business lending with Westpac 
  • Have ATO payments, loan repayments and employee entitlements (including super) up to date.