Business loan application #turnkey #business
#business loan application
Can I ensure my business loan application is accepted?
Assessing your business loan application
When assessing your business loan, we’ll ask you:
- Can you afford the business loan?
We’ll need your financials for the last 2 years including balance sheets, profit and loss and tax returns. Having access to this historical information helps us determine whether your business can meet your future loan repayments.
- Can you provide security for your loan?
You’ll need to secure your business loan with an asset, usually property (residential, commercial or rural) depending on the type of business. Find out what you can use as security for your business loan.
- Will you be able to continue making repayments?
We’ll evaluate your business by looking at your plans, competitor activity, suppliers and business contracts to determine whether your business will have enough revenue to meet your repayments in future.
What if you’re starting a new business?
If you’re starting a business, you won’t have historical financial statements but you will need to provide a detailed business plan with profit and loss forecasting to support your business loan application.
And if you’re buying an existing business you’ll need to show the last 2 years profit and loss statements when you submit your business loan application.
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.
- Make sure you have enough money to cover costs. If you have an existing business loan don’t overdraw your account and make consistent additional repayments when possible.
- 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 – including your loan details, repayments, overdue accounts – and lenders use this information to assess whether you’re credit worthy
If you’d like to discuss your options with a business manager, complete our short enquiry form and we’ll contact you or call us on 132 142 (8am-8pm, Mon – Fri).