Broker guide
CommBank Business Loans: Policy and Evidence 2026
Check CommBank business finance against the client’s purpose and trading record. Separate working capital, secured loans and equipment funding routes.
- Published
- Updated
A CommBank business loan must fit the business’s funding purpose and repayment capacity, with the evidence required for the chosen facility. A term loan funds an upfront cost, while cash-flow facilities support operating expenses. Equipment and commercial-property lending have their own security and eligibility rules.
Match the Facility to Its Purpose
Choose a facility by its drawdown pattern and source of repayments. Record the borrower’s legal entity, the funding purpose and the source of repayments before comparing loan structures.
A purchase with a known cost can suit a term loan repaid over an agreed period. A seasonal gap between paying suppliers and receiving customer payments calls for a cash-flow assessment. For invoice finance, the debtor book and collection cycle are part of that assessment.
CommBank’s business finance range separates term lending, cash-flow facilities and car and equipment finance. Commercial investment property also has a Lease Doc pathway. Each route serves a different use of funds.
Keep the purpose and security separate. A business loan secured by a director’s home remains business finance. Use the business product’s evidence and repayment terms when preparing the file, without substituting residential home loan deposit or income rules.
An ordinary personal loan isn’t an interchangeable application route for a company’s working capital. Identify who incurs the debt and who receives the funds. If a proposed transaction mixes personal and business purposes, set out each component for the bank before selecting the facility.
Better Business Loan and Other Current Products
CommBank’s term product is named BetterBusiness Loan. Its BetterBusiness Loan page lists secured and unsecured options, with fixed or variable interest and principal and interest or interest-only repayment structures.
The unsecured option has a maximum term of seven years and limits up to $250,000. Secured terms can extend to 30 years, depending on the security. Residential, rural or commercial property can secure the loan.
Current Product Routes
| Product or pathway | Funding purpose | Repayment structure | Security or qualifying feature |
|---|---|---|---|
| BetterBusiness Loan | Business costs or investment funded upfront | Agreed term repayments | Secured or unsecured options |
| Business Overdraft | Short-term operating cash shortfalls | Deposits reduce the amount drawn, with no regular fixed repayments | Linked business transaction account, secured or unsecured options |
| Stream Working Capital | Cash tied up in unpaid invoices | Balance adjusts when invoices are paid | Unpaid invoices support the facility, with a dedicated transaction account |
| Car & equipment finance | Business vehicles or equipment | Fixed repayments, with an optional final balloon | The financed asset secures the agreement |
| Lease Doc loan | Tenanted commercial investment property | Terms of the underlying BetterBusiness Loan or Market Rate Loan | Rental assessment for a standalone non-trading property-holding company or trust |
The Business Overdraft charges interest on the amount used. Its published offer excludes refinancing existing debt and purchasing an asset. An establishment fee and a line fee apply, so an unused limit can still have a cost.
Stream Working Capital suits businesses invoicing other businesses after completing the work. Consumer-only sales, advance invoices and staged invoices fall outside its stated fit. The bank requires access to accounting information and receipt of invoice payments into the facility’s transaction account.
For Car & equipment finance, the business needs a current Australian business number (ABN), an established trading record and acceptable credit. The eligibility section states more than 12 months of trading. A balloon reduces the scheduled repayments but leaves a lump sum due at the end and increases total interest.
The Lease Doc loan needs a tenanted commercial investment property with an arm’s-length lease. Its published limits are 65% loan-to-value ratio (LVR) and a minimum interest coverage ratio of 1.5 times.
The Lease Doc term is up to five years or lease expiry, whichever is shorter. These terms apply to its rental assessment pathway.
For BetterBusiness variable loans, extra repayments and redraw are available under the applicable terms. Fixed rate loans don’t have redraw under the bank’s business finance conditions. Compare the offer’s fees and repayment rules alongside its rate.
Fictional Repayment Comparison
Consider a fictional $100,000 fully amortising loan at 10% per year. Assume monthly principal and interest repayments, a constant rate and no fees or balloon. These are calculation inputs, not a CommBank quote.
| Loan term | Monthly repayment | Total interest |
|---|---|---|
| Three years | Approximately $3,226.72 | Approximately $16,161.87 |
| Five years | Approximately $2,124.70 | Approximately $27,482.27 |
The five-year term reduces the monthly payment by about $1,102 but adds about $11,320 in interest. Totals use unrounded repayments, so actual schedules can differ slightly through rounding. Compare the real offer over the same amount and repayment structure before deciding whether the lower payment suits the business.
Read the Borrower’s Business Record
Use the chosen product’s evidence requirements to show how the business earns enough cash to meet its commitments. Reconcile the legal borrower with the trading business and identify any owners or guarantors involved.
CommBank’s business loan document guide identifies financial statements, individual income evidence and bank statements. It also calls for identification and documents supporting the business structure. The required records depend on the business and facility.
For a trading business, prepare the balance sheet and income statement, with a cash-flow statement where relevant. Gather requested tax returns, business activity statements (BAS) and Australian Taxation Office (ATO) account records. Explain differences between accounting profit and cash available for repayments, including unpaid invoices and upcoming tax obligations.
Directors and shareholders can need their two latest personal tax returns and an ATO notice of assessment. Guarantors also need supporting financial information. Use the trust deed, partnership agreement or company registration to establish the relevant structure.
For a start-up or a business with less than 12 months of trading, the guide identifies cash-flow projections and a business plan. A business purchase contract or lease can also be relevant. That evidence doesn’t remove the trading-history conditions of a particular product, including the separate equipment-finance eligibility rule.
Lease Doc has a different evidence route. Its page requires the active lease and a tenancy schedule if available, plus ATO income tax and goods and services tax (GST) account statements.
A purchase needs the sale contract. A refinance needs 12 months of loan and transaction statements.
In a fictional business acquisition, the seller’s historical profit belongs to the business before the buyer’s proposed changes. Show the effect of a new lease, staffing costs and the proposed debt repayments in the forecast. Keep the forecast separate from verified past trading results so the bank can assess each assumption.
Reconcile Security and Existing Debt
Record every facility against its borrower, repayment obligation and security provider. Include guarantees in the file even when the account statements show payments made entirely by the company.
The bank’s business finance conditions work with the signed offer and other documents forming the contract. Use the actual offer to identify the required security and repayment terms. Read a guarantee’s scope from its documents instead of assuming that a product labelled unsecured removes personal obligations.
For Lease Doc, the published security package includes a first-ranking mortgage over the investment property and a general security instrument over the borrower. It also includes a director guarantee. Keep each obligation in the submission and any wider review of the director’s position.
Use a debt schedule that lets another person trace each entry to evidence:
- Identify the borrower and lender for every term loan, overdraft, equipment agreement and credit card.
- Record balances, limits and contractual repayments, including interest-only periods and final balloons.
- List property mortgages, other pledged assets and guarantees beside the facilities they support.
- Show which debts continue and which the proposed loan will repay, with payout and release requirements for those being replaced.
When the owner also applies for personal borrowing, reconcile salary, distributions and business debt payments across both files. For example, a company-paid equipment repayment must remain visible alongside the business income used to support the owner. Explain the treatment used in each assessment so the same cash isn’t counted twice.
Before submission, trace the requested advance to its uses and the repayments to the cash-flow forecast. Resolve differences between the debt schedule, bank statements and offer documents. The final file must show who owes the money, what supports it and how the business will repay it.
