Canoco Pty. LimitedCanberra · ACT
+61 488 875 050
We provide finance for genuine business purposes only. We do not provide consumer credit — loans for personal, domestic or household use. If that is what you need, you need a lender licensed for it.
Business finance · Canberra

A signature on a business-purpose
declaration can take protections away

Canoco Pty. Limited provides finance to businesses in Canberra and the surrounding region. Our registered office is at Level 1, 10 Rudd Street in the city.

Australian law draws a firm line between credit for personal use and credit for business. Personal credit comes with substantial consumer protections. Business credit, largely, does not. The line is usually marked by one document — a declaration that the money is for business purposes — and borrowers sign it far more casually than they should.

Protection, in general termsConsumer creditBusiness-purpose credit
Lender must assess whether the loan is unsuitable for youGenerally yesGenerally no
Lender must hold a credit licence for that creditGenerally yesGenerally no
Hardship variation rights under consumer credit lawGenerally yesGenerally no
Prescribed disclosure of costs and termsGenerally yesLargely contractual
Access to an external dispute resolution schemeGenerally yesDepends on the lender and the business
A simplified general comparison. Precise coverage depends on the facts of each loan, the size of the business and the applicable law. Take advice on your own position.
Five things to understand

Before signing any business-purpose declaration

Select a heading to expand it.

01What the declaration actually doesIt changes which law applies to your loan

When you declare that credit is predominantly for business purposes, the loan is generally treated as outside consumer credit law. That is not a formality: it decides whether the protections in the table above apply to you at all.

A lender that knew or had reason to believe the money was really for personal use cannot simply rely on the declaration. But you should not be the one depending on that exception.

02When the purpose is genuinely mixed"Predominantly" is the word that matters

Some borrowing is part business, part personal — a vehicle used for both, a refinance that tidies up household debt alongside business debt. The question is what the money is predominantly for.

Describe the purpose honestly and in detail. If a lender or broker suggests you describe it more "simply" so that it fits a business product, that is exactly the moment to stop.

03Personal guarantees reach your homeA business loan is rarely only the business's problem

Business finance to a small company very commonly comes with a personal guarantee from its directors, and sometimes security over residential property.

  • A guarantee is usually for the whole debt, not a share of it.
  • Resigning as a director does not generally end it. Release is a separate, written act.
  • A spouse asked to guarantee should take entirely separate, independent legal advice.
04How business finance is pricedCompare total cost, not the headline

Business lending may be quoted as an interest rate, a fixed fee, a factor or a mixture. Establishment fees, line fees and early repayment charges all belong in the comparison.

Ask every lender the same question: what is the total amount repayable, and on what dates? That single figure is the only one that compares honestly between offers.

05If it is really personal creditGo where the protections are

If the money is for a car, a renovation, a holiday or household debts, you need a consumer credit provider licensed for that purpose — and you are entitled to the protections that come with it.

Licensed credit providers and credit representatives can be checked on ASIC's professional registers. Check any lender before sharing documents, including us.

Our approach

What we will and will not do

Because business finance carries fewer statutory protections, we treat the honesty of the purpose as our responsibility too, not only yours.

We ask what the money is forIn detail, and we record it. A vague purpose is not a business purpose.
We decline disguised consumer loansIf the money is really for personal use, we say so and decline, rather than accept a declaration we have reason to doubt.
We put every cost in writingThe total repayable, the dates, every fee and any guarantee — before anything is signed.
What we offer

Business finance

Working capital

For trading businesses bridging the gap between paying costs and being paid — including by slow-paying clients.

Equipment and fit-out

Finance for the assets a business needs to operate, sized to what the business can service.

Short-term facilities

For defined business needs with an identified source of repayment.

No rates are published here. Pricing depends on the business, the purpose, the term and any security, and a headline figure would be wrong for most readers. You receive the full terms, the total amount repayable and every fee in writing before signing. All finance is subject to assessment and approval.
Contact

Tell us what the money is for

The purpose first, then the amount. If it turns out to be personal credit, we will tell you where to go instead.

Registered officeLevel 1, 10 Rudd Street
City ACT 2601
Not offeredConsumer credit for personal, domestic or household purposes