Quick answer
Before applying, answer fifteen questions a lender will ask: how much, for what, by when, and how it's repaid; what your turnover and slowest month look like; what debts and tax obligations exist; what security you'll offer; what's on your credit file; how long you've traded; and which documents are ready. Writing the answers down first makes the application faster, more accurate and far more likely to match the right option.
Key points
- Interview yourself the way a lender would before you apply anywhere.
- Amount, purpose, repayment source and deadline are the core four answers.
- Know your slowest month, your existing debts and your tax position.
- Decide on security and check your own credit file in advance.
- Accurate answers get you matched correctly on the first call.
The quickest loan applications aren’t the ones with the most documents. They’re the ones where the owner already knows the answers to every question the lender will ask. business.gov.au suggests preparing an overview of your finances before you apply; this guide turns that advice into a self-interview.
Grab a notepad, work through the fifteen questions below, and write short answers. It takes about half an hour, and it can save days.
Part 1: What do I need, and why?
1. How much do I need — exactly? Not a round number, but the real figure. If it’s a tax bill, the ATO statement. If it’s equipment, the quote. If it’s a cash gap, the lowest point in your forecast plus a buffer.
2. What exactly is it for? One or two sentences a stranger would understand. “Clear the $86,000 June-quarter BAS” is better than “working capital”.
3. When do I need it, and why then? A real deadline — a settlement date, a BAS due date, a supplier’s order cut-off — helps a specialist choose a route that can meet it.
4. How will it be repaid? From ongoing trading, a sale, a refinance, a receivable? Be specific. For short-term needs, this “exit” matters as much as the amount. See how long you can borrow for.
Part 2: How does my business trade?
5. What’s my average monthly turnover over the last twelve months? Use deposits into the business account, excluding transfers between your own accounts.
6. What does my slowest month look like? This is the month a careful lender will test repayments against. If you don’t know it, pull up twelve months of statements and find it.
7. What regular costs come out every month? Wages and super, rent, loan and lease repayments, key suppliers, subscriptions. business.gov.au’s cash flow statement template is a handy way to lay this out.
Part 3: What do I already owe?
8. What existing debts does the business have? List every loan, lease, line of credit and business credit card with the balance and repayment. Note any with daily or weekly repayments.
9. What’s my tax position? Are BAS and income tax returns lodged? Is there any ATO debt? Is it on a payment plan, and is the plan being kept? If there’s a gap, read business loans with ATO debt.
If you’ve got this far and some answers feel uncomfortable, that’s normal. You can talk it through with a real person now — there’s no credit check when you first enquire, and uncomfortable answers are exactly what we’re used to working with.
Part 4: What can I offer, and what’s on my record?
10. Is there property that could secure the loan? Who owns it, roughly what it’s worth, what’s owed on it and whether every owner would agree. See using your home for a business loan.
11. What’s on my credit file? Get your own report — Moneysmart notes it’s free every three months — and check for defaults, judgments or enquiries you don’t recognise. Write two lines of context for each genuine issue.
12. How long has the business been trading, and has anything interrupted it? Start date, any change of structure, any period of disruption and why. More in how long you need to be trading.
Part 5: Am I ready to move?
13. Which documents are ready now? ID for everyone involved, ABN/ACN, twelve months of statements for every business account, and — depending on the loan — BAS, tax returns, financials and property documents. The documents checklist sets out the lists.
14. Who else needs to be involved? Directors, guarantors, property co-owners, your accountant. Do they know what’s coming and are they available to sign?
15. What would make me say no to an offer? Decide in advance: a repayment that doesn’t fit your slowest month, a term too short for the purpose, security you’re not comfortable giving, or costs you can’t justify. Knowing your limits keeps you from saying yes under pressure. Our guide questions to ask a business lender helps test an offer against them.
How do my answers translate into a route?
Once the answers are written down, patterns appear:
| If your answers show… | The likely route |
|---|---|
| Steady turnover, modest amount, no property | Unsecured loan or line of credit ($5,000 – $500,000) |
| Larger amount or longer term, property available | Property-secured loan ($20,000 – $5,000,000) |
| Short trading history, property available | Property-secured loan |
| Credit issues, property available | Property-secured, case by case |
| Repeating, uneven cash needs | Line of credit |
| Several stacked debts | Consolidation, often property-secured |
The loan navigator walks through a shorter version of these questions and shows the likely route instantly.
What mistakes does this self-interview prevent?
- Guessing the amount and having to reapply for more.
- Forgetting an account or a debt, which surfaces mid-assessment and slows everything.
- Choosing the wrong route — applying unsecured when property security was needed, or vice versa.
- Multiple applications after avoidable declines, each leaving an enquiry on your credit file.
- Signing under pressure without having decided your limits.
Each of these costs time, and some cost money. See what slows a business loan down for more.
How should I write the answers down?
Keep it to a single page. Lenders and specialists don’t need an essay — they need the facts in an order that makes sense. A simple layout works well:
- The ask: amount, purpose, deadline, repayment source — four lines.
- The business: what it does, how long it’s traded, average and slowest month.
- What’s owed: a short table of debts, plus the tax position in one sentence.
- What’s offered: property or other security, and who owns it.
- What to know: any credit issues or interruptions, each with two lines of context.
- What’s ready: the documents you can send today.
Write it in plain language, as if explaining to a sensible friend. Avoid rounding numbers to make them look better, and don’t leave out anything awkward — the point of the exercise is that nothing surprises anyone later.
Once it’s written, read it back and ask one final question: if I were lending my own money, would this make sense to me? If the answer is yes, you’re ready. If it’s “not quite”, the weak spot is usually obvious — an exit that isn’t clear, a repayment that doesn’t fit the slow month, or an amount without evidence. Fix that first, then apply.
Should I share the page with my accountant first?
It’s a good idea for larger loans, anything involving tax debt or overdue lodgements, and whenever the structure is complicated. Your accountant can confirm the turnover and profit figures, estimate any tax owing and flag anything a lender will query. That review often takes less than an hour and can prevent a round of questions later.
What does a prepared owner sound like? (Illustrative example)
Illustrative only — invented business.
A Darwin tour operator works through the fifteen questions and ends up with a one-page summary: $140,000 needed by 1 April to buy a second vehicle before the dry season; repaid from peak-season bookings, with twelve months of statements showing the seasonal pattern; one existing vehicle loan; BAS lodged, no ATO debt; equity in a home owned with a partner who’s on board; one paid default from five years ago with a two-line explanation.
When she enquires, the specialist’s first call confirms the details rather than discovering them. The route — a property-secured loan structured around the season — is clear within minutes.
Bring your answers to a real person
Doing this homework puts you in control of the conversation. Enquiring doesn’t involve a credit check, your details aren’t sprayed out to a pile of lenders, and a real person reads your answers and calls you. Use what you’ve written to fill in the form accurately — amount, purpose, turnover, debts, property and credit — and you’ll be matched properly on the first call.
Frequently asked questions
What should I know before applying for a business loan?
Your exact amount and purpose, how and when the loan will be repaid, your average and slowest monthly turnover, existing debts and tax position, what security you can offer, anything on your credit file, and which documents you have ready.
Should I check my credit report before applying?
Yes. Moneysmart notes you're entitled to a free copy every three months, and checking your own report doesn't affect it. Fix errors and prepare explanations for genuine issues before you apply.
How precise does my loan amount need to be?
As precise as the purpose allows. Quotes, invoices or an ATO statement make the amount easy to justify. A vague 'as much as possible' request usually slows things down.
Do I need all my documents before I enquire?
No. You can enquire with just basic details. Having documents ready simply speeds up the application once you decide to proceed.
What if some of my answers aren't great?
Write them down anyway. A lender will find them, and an honest answer with context is far better than a surprise. Many issues are workable when explained upfront.