What's a business overdraft? 

  • It's an agreed amount of additional funds linked to your CommBank business transaction account you can access whenever you need
  • You’ll pay interest on the amount you use and a fee for the total approved amount
  • You make payments on the overdraft every time you put money into your linked transaction account 
  • You can secure your overdraft with property or other business assets and have the benefit of a lower rate, or you can have an unsecured overdraft which will attract a higher interest rate

Case study

Annabel is a sole trader who runs a property management business and receives payments from her customers at the end of each month.

She sometimes receives bills which exceed her cash balance and are due before her monthly customer payments come in. So she can pay her suppliers she sets up an overdraft to cover the shortfall until she receives her regular monthly payments.

Annabel benefits from an overdraft because she doesn't have to draw money from a separate loan. Instead she can access the funds she needs for her suppliers and other expenses directly from her transaction account. 

Annabel pays interest on the cash she draws against the account, but she has the full balance available so it's there when she needs it. An overdraft limit is in place, similar to a credit card limit on a credit card.

Annabel secured the overdraft against her business, and benefits from a lower rate for using her overdraft. 

Could your business benefit? 

Manage your cash flow

  • An overdraft is a revolving credit facility so you can continue to access funds as and when you need
  • There are no fixed repayments, unlike a term debt or business loan
  • Manage unexpected expenses, or cover the cash flow gap between receiving payment from customers and paying your suppliers

Get extra funds when you need

  • Access your overdraft just like you would funds in your business account, using an ATM, NetBankCommBiz, EFTPOS, cheque, over the phone, in branch and the CommBank app

Easy to manage

  • Only pay interest on the balance of your overdraft
  • No need to make regular repayments

Are you eligible? 


A business overdraft may be suitable for registered Australian businesses who are:

  • Sole traders
  • Partnerships
  • Trusts
  • Limited or proprietary limited companies

You're more likely to be approved if:

  • You haven't been overdrawn or had your account in arrears anytime in the past 3 months
  • You haven't been declared bankrupt in the last 5 years
  • You haven't had any accounts in collections in the past 6 months
  • You have cash reserves to demonstrate that you can operate the business for at least the first 3 months

Rates & fees

Competitive rates & fees

The rates and fees you'll be charged will depend on your overdraft limit and other options you choose. Your business banker will discuss these with you.

They may include:

  • Interest rate from 7.68% p.a.1 You only pay this on the amount you use
  • Line fee from 1.12% p.a.1 charged quarterly or monthly, on your highest limit or balance. This fee is for making your overdraft available to you 24/7
  • Establishment fee. This is a one off fee charged at the establishment of your overdraft

Ready to apply? 

How to apply

  1. Have the following information handy: your ABN or ACN, financial statements, proof of income and bank statements. These will help us understand your current situation. Here's some more about documents you may need.  
  2. Start your application in NetBank. 
  3. Once submitted, a business banker will give you a call to finalise your application. 
  4. Alternatively, call 13 1998 to speak to one of our business bankers.

Request a callback

Is a Business overdraft right for you?

Here are some other products that might meet your business needs:

BetterBusiness loan

  • A simple business loan for short to medium term finance needs
  • For loans from $10,000

Go to BetterBusiness loan

Bank guarantee

  • Guarantee payment to a third-party, including landlords, partners, and suppliers
  • Guarantees from $5,000

Go to Bank guarantee

Market rate loan

  • Get a transparent market rate 
  • For loans from $500,000

Go to Market rate loan

Car & equipment finance

  • Tailored to fund eligible income-generating equipment
  • Equipment loan, finance lease and hire purchase available

Go to Car & equipment finance

Things you should know

1Please refer to the overdraft reference rates and fees within our business banking rates and fees, as these are subject to change. Interest rate margins will apply..

This information is current as at 24 July 2020 and is for general information purposes only. It has been prepared without considering your objectives, financial situation or needs. You should consider the appropriateness of this information to your circumstances before acting on it.

Credit provided by the Commonwealth Bank of Australia. These products are only available to approved business customers and for business purposes only. This offer cannot be used to refinance existing debt or purchase an asset. Applications for finance are subject to the Bank's eligibility and suitability criteria and normal credit approval processes. View ou Current Terms and Conditions for Business FinanceFinancial Services Guide (PDF 59kb) and business transaction account terms and conditions and consider them before making any decision about these products. For current interest rates, visit <Business banking rates and fees>. Rates are subject to change. Fees, charges and Terms & Conditions apply.

Terms and conditions issued for CommBiz and NetBank are available on our website at commbank.com.au, from any of our branches or by phoning us on 13 2221, and should be considered before making any decision about these products. For current interest rates, visit commbank.com.au/business/rates-fees.