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Can I ensure my business loan application is approved?

Find out the criteria we use to assess your loan application and how you can improve your likelihood of being accepted.

Assessing your business loan application

We’ll ask you 3 important questions when assessing your business loan application.

1. Can you afford the business loan?

We’ll need your financials for the last 2 years. This includes:

  • balance sheets
  • profit and loss
  • tax returns

This information helps us determine whether your business can meet future loan repayments. 

Not familiar with financial statements? We’ve got a simple guide to help you understand financials for your small business.

We’ll also need you to have had a valid Australian Business Number (ABN) for at least 2 years.

If you’re thinking of applying for a business car loan, use our repayment calculator to work out a loan amount you can afford.

2. Can you provide security for your loan?

You’ll usually need to secure your business loan with an asset. Residential, commercial or rural property is often used as security but it depends on the type of business. Find out what you can use as security for your business loan.

3. Will you be able to continue making repayments?

We’ll evaluate your business by talking to you about:

  • your future plan
  • competitor activity
  • your suppliers and business contracts.

This helps us determine whether your business will have enough revenue to meet your future repayments.

What if you’re starting a new business?

You’ll need to provide a detailed business plan with profit and loss forecasting to support your business loan application.

If you’re buying an existing business you’ll need to show profit and loss statements for the last 2 years.

How to strengthen your business loan application

Improve your future borrowing potential by taking some basic steps today.

Maintain accurate, up to date financials

This provides a clear understanding of your business income and whether you can afford the business loan.

Read our simple guide to help you understand financials for your small business with templates to get you started.

Make sure you have enough money to cover costs

If you have an existing business loan don’t overdraw your account. Try to make extra repayments consistently if you can.

Maintain a good credit history by paying off your debts on time

All your credit activity (personal and business) is kept on file for 5 years. This includes your loan details, repayments, overdue accounts. Lenders use this information to assess whether you’re credit worthy.

Things you should know

This information is general in nature and has been prepared without taking your objectives, needs and overall financial situation into account. For this reason, you should consider the appropriateness of the information to your own circumstances and, if necessary, seek professional advice.