Large business loans in Australia: borrowing from $1 million to $5 million

Large business loans are borrowings of roughly $1 million and up, used to buy property, acquire another business, refinance a stack of existing debt or fund a major expansion. At this size, large business loans in Australia are almost always secured, usually by property, and assessed on full financial statements rather than bank statements alone. The lender is underwriting a serious commitment, so it expects a serious file.

This page is part of our guide to business loans in Australia. It explains how seven-figure loans are assessed, what security is needed, which lenders operate here and how to prepare so the process runs smoothly.

Who lends business loans over $1 million?

Business loans over $1 million come from three main lender groups, each with its own sweet spot:

Lender type	Where they fit best	Trade-offs
Major banks and regional banks	Established, profitable businesses with full financials and strong property	Slower, strict policy, extensive documentation
Non-bank lenders	Businesses just outside bank policy; alt-doc or self-employed borrowers	Usually priced above banks; more flexible on paperwork
Private lenders	Short-term deals, tight timelines, unusual property, credit issues	Highest cost; shorter terms; exit is critical

The RBA’s October 2025 Bulletin notes that growth in outstanding SME loans of around 6½ per cent over the year was driven almost entirely by larger loans to SMEs, and that the non-bank share of SME lending has grown strongly since early 2022. Large-loan borrowers have more choice than they did a few years ago, but the gap between lenders’ policies is also wider.

What security is needed for loans up to $5 million?

For business loans up to $5 million, lenders typically rely on a package of security rather than a single asset:

• First mortgages over residential or commercial property, which provide the strongest position.
• Second mortgages behind existing loans, where there’s enough equity. See second mortgage business loans.
• Several titles together, such as a family home plus an investment property, to reach the required cover.
• Director guarantees and a general security agreement over the business’s assets.

Each property is valued and lent against at the lender’s loan-to-value ratio for that type. A suburban house might support a higher ratio than a specialised commercial building or a rural holding. The RBA notes that new SME loans secured by residential property are, on average, around four and a half times as large as those secured by other means — property is what makes large lending possible for most private businesses.

Property-secured business loans through our network range from $20,000 to $5,000,000 against residential or commercial property.

Planning a seven-figure borrowing? Talk it through with a specialist before you approach lenders — your first enquiry doesn’t involve a credit check.

How are large business loans assessed?

Lenders look at four pillars, and at this size they look at all four closely:

1. Serviceability. Can the business, and sometimes the owners personally, meet repayments from reliable income? Lenders use financial statements, tax returns and management accounts, and stress-test the result.
2. Security. Valuations, title searches and loan-to-value ratios across every property offered.
3. Character and track record. Credit history, industry experience, how previous debts were handled and any ATO arrears.
4. Structure. Which entities borrow, own the property and guarantee; whether trusts and companies are set up so the security can be properly taken.

Where serviceability is weak but security and exit are strong — for example a bridge to a property sale — some non-bank and private lenders will still lend, on shorter terms. Our guide to what lenders look at breaks down each pillar.

What are large business loans used for?

Purpose	Common structure
Buying commercial premises	Commercial property loan
Acquiring a competitor or another business	Term loan secured by property and the business
Refinancing multiple loans, leases and ATO debt	Debt refinance into one secured facility
Major equipment or fleet expansion	Asset finance plus a secured term loan
Bridging between two property transactions	Bridging finance
Construction or a significant fit-out	Construction or progress-draw facility

What does crossing the $5 million line mean?

Two practical thresholds sit at $5 million.

• Banking Code of Practice. The Australian Banking Association lifted the small business definition so that the Code’s small business protections apply where total credit is under $5 million, with other size tests also applying. Borrowers above that line may fall outside those protections with signatory banks.
• AFCA. The Australian Financial Complaints Authority can’t consider a small business complaint about a credit facility exceeding $5 million.

Neither threshold stops you borrowing more, but both are worth knowing when deciding how to structure a large facility. Our guide to the 2025 Banking Code for small business explains what the Code covers.

How do you prepare a strong large-loan application?

• Up-to-date financials. Lodged tax returns and financial statements for the last two years, plus current-year management accounts.
• A one-page deal summary. Purpose, amount, term, security, exit and why the numbers work.
• Property details. Titles, rates notices, existing mortgage statements and any recent valuations.
• Entity chart. A simple diagram showing who owns what, especially with trusts and companies.
• ATO position. Clear account statements, or a payment plan in place and up to date.
• Explanations upfront. Any past credit issues, one-off losses or unusual transactions, explained before the lender finds them.

The document checklist builder will produce a tailored list.

Should you borrow from one lender or split the facility?

At seven figures, it’s worth asking whether one lender should carry everything. There are good arguments both ways.

One lender, one facility keeps things simple: a single set of documents, one valuation process, one repayment and one relationship to manage. It usually suits a business refinancing several smaller debts or buying premises outright.

Splitting across lenders can make sense when different assets suit different lenders. Equipment might sit with an asset financier, the premises with a bank, and a short-term gap with a private lender until a sale settles. Splitting also avoids having every property tied to one lender’s cross-collateralised security, which can make it harder to sell or refinance a single property later.

Ask any lender whether its security will be “all monies” across every property you offer. If it is, releasing one title later may require the lender’s approval and a fresh assessment of what’s left.

What slows down a large business loan?

Large loans take longer than small ones because there are more moving parts, but most delays are avoidable:

1. Out-of-date financials. Unlodged returns or year-old accounts stall credit assessment.
2. Valuations. Commercial and rural valuations take time to book and complete, and a low result reopens the whole structure.
3. Entity complications. Trust deeds, company constitutions and guarantor signatures all need checking.
4. Existing lenders. Payout figures and discharge of current mortgages can take weeks if not requested early.
5. Unexplained items. Large transfers, ATO arrears or past defaults the lender discovers late.

Starting these in parallel, rather than one after the other, is the single best way to shorten the timeline. Our guide to how long a business loan takes covers the typical stages.

Illustrative example: consolidating and expanding

Illustrative only, round numbers, invented business. A family-owned engineering firm has a $900,000 equipment loan, several leases and an ATO payment plan, and wants $1,200,000 more to buy the factory it rents. The directors own their home and an investment unit.

• A non-bank lender values the factory, the home and the unit.
• It approves a combined $3,000,000 facility secured by first mortgages over the factory and unit, plus a second mortgage behind the home loan.
• The equipment loan, leases and ATO plan are paid out, and the factory is purchased.
• Repayments now come from one facility instead of five, and the business owns its premises.

Ready to talk about a larger loan?

If you’re looking at a seven-figure borrowing, start with a quick check on whether you qualify. There’s no credit check at the enquiry stage, your file isn’t shopped to a long list of lenders, and a specialist works through your security, financials and structure with you. Accurate figures for property values, existing debts and the purpose let us match the right lender first time.