The best business loans over $1 million: our 2026 verdict

A business loan over $1 million is a seven-figure facility for a big, usually long-term purpose: buying premises, acquiring another business, a major fit-out, a large contract or refinancing a group of debts. At this size, the best business loans are nearly always secured over property, because nothing else gives a lender enough comfort to lend that much over that long at a sensible cost. The real decisions are which property, which kind of lender, and how you’ll repay or refinance.

Why does property security dominate above $1 million?

Because unsecured and statement-based lending is built for smaller sums. Unsecured, cash-flow and line-of-credit options for trading businesses typically range from $5,000 to $500,000, sized on turnover. Past that, lenders want an asset that holds its value.

The wider market reflects this. The Reserve Bank’s October 2025 Bulletin reports that SME loan growth over the past year has been driven almost entirely by larger loans, that new loans secured by residential property are on average about four and a half times as large as non-residentially secured loans, and that the unsecured share of SME credit has stayed below 5 per cent.

Which business loan over $1 million is best? Our ranking

1. Our pick: a first mortgage over commercial property

If the business owns, or is buying, a warehouse, shop, clinic or office, a first mortgage over it is usually the cleanest large facility: long term, predictable repayments and the property working for the business that uses it. Our commercial property loan verdict covers buying premises in detail.

2. Runner-up: a loan secured over residential property

Many owners fund large business needs with equity in their home or an investment property, by first or second mortgage. It can unlock seven figures where the business doesn’t own premises. The stakes are personal, so the repayment plan has to be solid. See the best loan when you own property.

3. A short-term caveat or bridging loan, for timing gaps

When a large sum is needed fast and the exit is clear, such as settling a purchase before an existing property sells, a bridging loan or caveat loan can fill the gap. These are short tools priced for speed and risk. Our caveat loan vs second mortgage verdict compares them.

4. Not for this size: unsecured loans and cash advances

Stacking several unsecured facilities to reach a seven-figure total is the costliest and riskiest way to fund a big need. Short terms and frequent debits on that scale can overwhelm even a healthy business.

How large loan options score

Test	Commercial property first mortgage	Residential property-secured	Caveat or bridging	Stacked unsecured
Total cost in dollars	Strong over long terms	Strong over long terms	Weak if held beyond the gap	Weak: short, costly money at scale
Fit to the job	Strong for premises and big projects	Strong for most large needs	Strong for short timing gaps	Weak: wrong tool for this size
Security	Fair: business property at stake	Weak: home or investment at stake	Weak: property at stake	Fair: guarantees, often several
Flexibility	Fair: fixed terms, some redraw	Fair: fixed terms, some redraw	Fair: short by design	Weak: frequent debits, little relief
Paperwork	Weak: full financials and valuation	Weak: valuation and financials	Fair: equity and exit focus	Strong per facility, messy in total

Our verdict

Planning a seven-figure move? Start a confidential enquiry and a specialist will tell you which security and lender type fit, before any credit check.

How much can you borrow against property?

Lenders cap a property-secured loan at a share of the property’s value, known as the loan-to-value ratio, and that share differs by lender, by property type and by whether the loan is full doc or low doc. Commercial and specialised properties are often lent against more conservatively than houses. Existing mortgages come off the top, so the usable equity is the lender’s maximum minus what you already owe.

Two practical points follow. First, the valuation decides more than the purchase price or your own estimate, so a conservative valuation can reshape the deal. Second, combining more than one property, such as business premises plus a director’s home, can lift the total available, though it puts more on the line. Our seven-figure ceiling sits at $5,000,000 with property security.

What exit plan do lenders want?

For long-term loans, the exit is simply repayment from business income over the term, so lenders focus on serviceability: can the profits carry the repayments with room to spare? For short-term caveat or bridging loans, the exit must be specific and believable, such as a contracted property sale, a refinance already in progress or a confirmed payment. Write it down, with dates, before you apply.

Bank or non-bank for a big loan?

Factor	Banks often win when	Non-bank lenders often win when
Documents	Full financials and tax returns are current	Income is complex or financials lag
Credit history	Clean history, no tax arrears	Past marks or ATO debt need explaining
Security	Standard residential or commercial property	Unusual properties or a mix of securities
Timing	You have weeks to spare	Settlement dates are tight
Structure	One straightforward borrowing entity	Trusts, groups or recent restructures

Neither type is automatically cheaper once fees, conditions and the cost of delay are counted. Our verdict on the best bank for business loans compares bank types, and bank vs non-bank covers the trade-offs.

Which protections apply at this size?

Two thresholds are worth knowing, because a large facility can tip a business over them:

• The Banking Code. The Australian Banking Association’s 2025 Banking Code of Practice took effect on 28 February 2025. Its expanded small business definition covers businesses with fewer than 100 full-time staff, turnover under $10 million and less than $5 million in total credit outstanding. It applies to subscribing banks.
• AFCA. The Australian Financial Complaints Authority helps small businesses with fewer than 100 employees for free, but cannot consider a complaint about a credit facility over $5 million.

Neither is a reason to borrow less than you need. They’re a reason to know your total debt position when you compare lenders.

Illustrative example: buying the warehouse next door

Illustrative only; round numbers.

A wholesale distributor has outgrown its leased warehouse. The adjoining building is for sale at $2.4 million. The business has strong, fully documented financials, and the two directors have equity in their homes.

Verdict: a first mortgage over the new warehouse for most of the price, topped up with a smaller second mortgage over one director’s home for the balance and stamp duty, both over long terms. The business stops paying rent and starts building equity in premises it uses. If settlement had fallen before the directors could arrange the long-term loan, a short bridging loan with a written refinance plan would have been the stopgap.

How do you prepare a large loan application?

1. Define the purpose and the numbers: price, costs, stamp duty, fit-out, working capital.
2. Gather full financials: two years of returns and statements, current BAS, a debt schedule.
3. Identify the security and get an idea of its value.
4. Show how it’s repaid: income from the business, a planned sale, or a refinance.
5. Organise your structure: which entity borrows, which guarantees, who owns the security.
6. Allow time for valuation and legal steps, and start before the deadline bites.

Buying another business? Our verdict on the best way to fund buying a business covers goodwill, vendor finance and due diligence. For every other situation, see our 2026 verdicts.

Ready to talk seven figures?

Large loans reward preparation and the right security. Check what your business could qualify for, from $1 million up to $5,000,000 with property security.

Your first enquiry carries no credit check, and your file isn’t hawked around to a long list of lenders. A real person works on it with you. Tell us the purpose, the security and your existing debts accurately, and we can steer you to a structure and lender type that suits from the outset.