How to get a business loan in Australia: the countdown

Getting a business loan isn’t one big leap. It’s a countdown: a handful of small, sensible moves in the right order. Do them in sequence and step 1 of our process (the actual application) becomes the easy part.

Here’s the full countdown, from ten to lift-off.

10. Why do you need the money?

Write the purpose down in one sentence. “Buy a second van and tools so we can run a second crew.” “Pay the ATO before interest builds and the debt hits our credit file.” “Stock up for Christmas before supplier prices rise.”

A clear purpose does three jobs at once:

• it tells you which type of loan fits;
• it tells a lender how the loan will be repaid;
• it stops you borrowing for things the business doesn’t need.

Remember, business loans are for business purposes only.

9. How much do you really need?

Price the thing properly, then add a sensible buffer. Fit-outs run over, imports arrive late, and new staff take time to become productive. But don’t round up to “as much as they’ll give me”. Every extra dollar costs money and adds to the repayment.

8. Can the business carry the repayment?

This is the step most people skip, and the one we care about most. Take your average monthly deposits from your bank statements, then estimate the repayment.

Illustrative example

A made-up landscaping business banks $60,000 a month. It wants $75,000 over 24 months, and a quote shows a total cost of finance of $15,000.

	Figure
Total to repay	$90,000
Monthly repayment	$3,750
Weekly repayment	about $865
Share of monthly turnover	6.25%

Now check a slow month too. If winter drops deposits to $40,000, the same repayment is about 9.4%. Still workable, but you’d want to know that in advance. Run your own version in the 1-2-3 Loan Repayment Planner, and read the repayment comfort test for the full method.

7. Secured or unsecured?

	Unsecured	Property-secured
Typical range	$5,000 to $500,000	$20,000 to $5,000,000
Based on	Turnover and bank statements	Property equity plus the business
Suits	Steady trading businesses, smaller amounts	Larger amounts, newer businesses, bad credit, tax debt
Paperwork	Lighter	Valuation and legal documents

The Reserve Bank’s October 2025 bulletin found property-based security still dominates small business lending, even as unsecured options have grown. If you own property, it widens your options. If you don’t, plenty of trading businesses borrow without it. More detail: unsecured business loans and secured business loans.

6. Clean up your bank statements

For most smaller loans, bank statements are the main event. Over the next few weeks:

• push every dollar of takings into one business account;
• avoid dishonours and overdrawn days;
• stop moving money back and forth between personal and business accounts;
• note any odd months so you can explain them.

Already tidy? Then you’re further along than most. Jump to step 1 and enquire in 60 seconds. There’s no credit check to enquire, and a real expert will tell you what’s realistic.

5. Get your tax position current

Lenders check BAS and tax debt. The ATO’s quarterly BAS dates are 28 October, 28 February, 28 April and 28 July. If you’re behind:

• lodge outstanding BAS even if you can’t pay in full;
• set up a payment plan if needed (the ATO says businesses owing $200,000 or less may be able to do this online);
• keep a copy of the arrangement for your lender.

An ATO debt doesn’t automatically rule you out. Ignoring one makes everything harder. See tax debt business loans.

4. Check your credit file

Moneysmart says you can get a free credit report every three months. Grab one, check for errors and get anything wrong corrected. If there’s a genuine black mark, prepare a short explanation: what happened, when, and what’s changed. See credit score for a business loan.

3. Gather the right documents, not every document

The business.gov.au guide to applying for a loan lists identification, a business plan, cash flow statements and forecasts, lease agreements and personal financial information as things lenders may want. Not every loan needs all of them. Smaller unsecured loans often need just ID, ABN details and recent statements. Wait for your lender’s list, then send it promptly. Our documents checklist breaks it down by loan size.

2. Apply once, well matched

Moneysmart notes that the number of credit applications you make affects your credit score. Firing off five applications to see who bites can do real damage. A better path:

• describe your situation accurately in one enquiry;
• talk to someone who understands which lenders suit it;
• apply formally with the best-matched lender.

That’s exactly how our process works: 1. Apply (a 60-second enquiry, no credit check), 2. Chat with one of our experts, then the formal application goes to a matched lender.

1. Read the offer, then sign

Before you sign, check:

1. the total cost of finance in dollars over the term;
2. the repayment amount, frequency and start date;
3. any fees taken from the loan amount;
4. early payout costs;
5. the security and guarantees you’re giving.

Our guide to the total cost of finance shows how to compare two offers properly. Business.gov.au also suggests checking a lender’s legitimacy on ASIC’s registers, and warns that lenders offering loans you didn’t apply for are typically scams.

Lift-off: funds in your account

Once the loan is approved, documents are signed and any security is registered, the lender settles and pays the funds into your business bank account, or straight to a supplier, the ATO or another lender if that’s the purpose. That’s step 3 of ours: see funds in your business bank account.

Common mistakes that slow things down

• Borrowing the maximum instead of what the plan needs.
• Leaving out debts or tax issues on the enquiry. They surface anyway.
• Mixing personal and business money.
• Choosing a term too short for what the money buys.
• Comparing headline rates instead of total dollars.

Not sure where you stand? The Am I loan-ready? quiz checks the basics in about a minute.

How long does the whole countdown take?

Steps ten to four are mostly yours, and they can take an afternoon or a few weeks, depending on how organised your records are. Steps three to one depend on the loan. Smaller unsecured loans assessed on bank statements usually move faster than property-secured loans, which need valuations and legal documents. Our page on business loan approval time explains where the time goes and how to save it.

What if the answer is no?

A decline isn’t the end of the road. Ask why, in plain terms. Common reasons are a repayment that looks too heavy against turnover, a short trading history, recent credit issues, an unexplained tax debt or a valuation that came in low. Each has a fix: a smaller amount or longer term, a few more months of clean statements, an explanation and an ATO arrangement, or a different security. Fix the cause, then try again with one well-matched application rather than several hopeful ones.

Your countdown, our step 1

If you’ve worked through this list, you’re in great shape. If you haven’t, you can still start: plenty of owners begin with a conversation and tidy up as they go.

Start step 1 now with a 60-second enquiry. Enquiring won’t touch your credit file, we never fire your details at a pile of lenders, and one of our experts will call you to talk it through. Please fill in the form as accurately as you can, especially purpose, turnover and any property or tax debt, so we can match you to the right loan on the very first call.