Why does preparation matter?
Two businesses with identical numbers can have very different funding experiences. One arrives with a clear purpose, recent statements and a repayment plan, and gets a quick answer. The other sends documents in pieces, can’t quite say what the money is for, and waits. Preparation doesn’t change your numbers — it changes how clearly they’re read.
What do lenders look at for unsecured funding?
For unsecured lines of credit and business loans, the assessment centres on how the business actually trades.
Turnover
How much money flows through the business, and how consistently. Seasonal patterns are perfectly acceptable — they just need explaining. A Riverland citrus packer with a quiet summer, or a Thredbo lodge with a short, intense winter, will look uneven on paper; a sentence of context fixes that.
Business bank statements
These are read closely. Lenders look for:
- Regular deposits from customers.
- How often the balance runs close to zero.
- Dishonoured payments or declined direct debits.
- Existing loan, lease, equipment finance and other repayments.
- Payments to the ATO, and whether any look irregular.
- Large or unusual transfers that may need a quick explanation.
Time trading
Usually six months or more for unsecured facilities, measured from when the business started trading under its current structure.
Credit history
Weaker credit is considered. A default from years ago with a clear explanation and clean conduct since is viewed very differently from recent arrears. It’s worth knowing what your file says before anyone else looks: you can get a free copy of your credit report from each credit reporting body every three months, as the OAIC explains.
ATO position
Tax is a big part of the picture. Lenders want to know whether BAS, PAYG withholding and super are being paid on time, and whether there’s any overdue balance or payment plan in place.
What changes for property-secured funding?
For property-secured loans of $20,000 to $1m, the focus shifts to three things:
- The property — its type, location and value, and any existing mortgage.
- The purpose — what the money is for.
- The exit — how the loan will be repaid: trading income, a sale, a refinance or a payment you’re owed.
No financials or tax returns are needed for the initial assessment. Bad credit, defaults and arrears are considered case by case, and ATO debt can be refinanced or paid out. Our guide to property-secured business loans explains the structure.
Your preparation checklist
| Item | Why it helps |
|---|---|
| Recent business bank statements | The core of most unsecured assessments |
| A one-line purpose | “To carry wages and stock through the wet season” |
| The amount, and how you worked it out | Shows it’s based on a real gap, not a guess |
| Your repayment plan | Names the source and timing of repayment |
| A short note on your seasons | Stops a quiet month being misread |
| A list of existing debts and leases | Avoids surprises later in the process |
| ABN, and ACN if you’re a company | Confirms who the borrower is |
| Your structure — sole trader, company, partnership or trust | Trusts may need the trust deed and trustee details |
| Your ATO position | Any overdue amounts or payment plan in place |
| Property details, if relevant | Address, rough value, current mortgage balance and lender |
A seasonal cash flow plan covers several of these rows at once.
How do you tell your story in three sentences?
Lending specialists appreciate clarity. Try this shape:
- What the business does and how it earns. “We run a charter and dive business out of Airlie Beach, with most revenue between June and October.”
- What’s happening now. “We need to cover crew wages and a scheduled engine rebuild through February and March.”
- How it will be repaid. “Bookings from the Easter holidays onward will clear it by the end of July.”
That’s often enough for a specialist to know which options are worth exploring.
What slows applications down?
- Business and personal banking mixed together. It has to be untangled before anyone can read it.
- Unexplained large transfers. Have a one-line note ready.
- Debts that weren’t mentioned. They’ll appear on statements; better to raise them first.
- A fuzzy purpose. “Working capital” is fine, but a specific need is easier to assess.
- Leaving it to the last minute. If you can, arrange funding while your statements look healthy — at the end of a strong season, not the middle of a lean one.
What should you ask the lender?
A funding conversation runs both ways. Ask:
- What’s the total cost, including any charges beyond the ongoing cost?
- Can I repay early, and is there a cost to doing so?
- How do draws and repayments work day to day?
- What happens if my circumstances change part-way through?
- What do you need from me, and by when?
We don’t publish rates, because every facility is priced on the individual situation. A good lending specialist will set out every cost clearly before you commit.
What if your bank has already said no?
A decline from your main bank doesn’t close every door. Banks apply their own credit policies, and seasonal businesses, younger businesses and those coming off a patchy year often fall outside them. Non-bank lenders assess differently: unsecured lenders focus on current trading shown in your bank statements and consider weaker credit, while property-secured lenders focus on the property, the purpose and the exit.
Be upfront about the decline and the reason you were given. It lets a specialist go straight to lenders whose criteria suit you, rather than repeating the same outcome.
Before you enquire
Take ten minutes to answer three questions: what the money is for, how much you need, and how you’ll repay it. Then start our 60-second enquiry — it’s free and doesn’t affect your credit score. A lending specialist will contact you to talk through the options, from a business line of credit to a property-secured top-up. For funding assessed on your trading rather than your assets, read about unsecured working capital.