Quick answer
Most Australian lenders look at the same core things: an active ABN, how long you've been trading, your turnover and bank statements, your credit history, your tax position (including any ATO debt), what the money is for, and whether there's property security. Unsecured loans lean on cash flow and history. Property-secured loans can be more flexible because the lender has a safety net.
Key points
- Nearly every lender checks: ABN, trading time, turnover, bank statements, credit and tax position.
- Everything connects to two questions: can you repay, and what if you can't?
- Property security can make up for a shorter history or credit bumps.
- Bad credit and ATO debt are considered case by case, not automatic no's.
- Must have
- An active ABN
- Unsecured sized on
- Turnover + bank statements
- Secured sized on
- Property equity + business
- Purpose
- Business only
Welcome to Stage 2. In Stage 1 you learned how loans work. Now we swap chairs and sit on the lender’s side of the desk. Once you see what a lender is checking, and why, business loan requirements stop being a mystery and become a to-do list.
What does every lender want to know?
Different lenders use different forms, but nearly all of them look at the same handful of things. Here they are, with the reason behind each one.
| Requirement | What it looks like | Why the lender cares |
|---|---|---|
| Active ABN | Your ABN, and GST registration if you’re registered | Confirms there’s a real business to lend to |
| Time trading | How long the ABN and bank account have been active | A longer track record makes the future easier to predict |
| Turnover | Money coming into the business each month | Shows the size of the business and what it can carry |
| Bank statements | Usually the last few months of business account statements | The most honest picture of cash coming in and going out |
| Credit history | Your personal and business credit files | Shows how you’ve handled credit before |
| Tax position | BAS lodged, tax returns, any ATO debt | Unpaid tax can compete with loan repayments |
| Purpose | What the money is for | Helps match the right loan and confirms it’s for business |
| Security | Property you could offer, if any | The lender’s safety net if repayments stop |
| Identification | Driver licence, passport or similar | Confirms who you are |
business.gov.au lists similar areas, noting that lenders examine your financial health, your ability to repay, any collateral, and often your business plan.
Why does each requirement exist?
It all comes back to the two questions from lesson one:
“Can this business comfortably repay?” That’s answered by turnover, bank statements, tax position and purpose. If money comes in steadily and there’s room left after costs, repayments look manageable.
“If something goes wrong, how do we get our money back?” That’s answered by security, credit history and guarantees. Property, a clean track record or a director’s guarantee all make the lender more comfortable.
Once you see requirements this way, you can also see how a strength in one area can balance a weakness in another. A newer business with good property equity can be a strong applicant. A business with no property but two years of steady, growing deposits can be too.
How are requirements different for unsecured and secured loans?
| Unsecured | Property-secured | |
|---|---|---|
| Amounts | Typically $5,000 to $500,000 | $20,000 to $5,000,000 |
| Biggest factor | Turnover and bank statements | Property equity, plus the business |
| Trading history | Usually needed | Can be more flexible |
| Credit bumps | Harder, but considered case by case | Often more room, case by case |
| ATO debt | Considered case by case | Considered case by case |
| Extra steps | Fewer | Property value and title checks |
If you haven’t met these terms yet, secured vs unsecured is a five-minute refresher.
What if you don’t tick every box?
This is where first-timers are often too hard on themselves. Very few applicants are perfect. Common “gaps” and how they’re often handled:
- Newer business? Property security, or strong deposits over a shorter period, can help. See new business loans.
- A few credit marks? Considered case by case, especially with an explanation and recent good behaviour. See bad credit or ATO debt.
- Mixed personal and business banking? Not ideal, but explainable. Start separating now.
- Behind on BAS? Getting lodgements up to date, even before paying, is a strong first move.
Not sure where you stand? Our loan-readiness quiz checks these areas in about two minutes and tells you what to fix first. Or skip ahead and ask a real person; there’s no credit check at the enquiry stage.
What makes an application look strong?
Beyond the checklist, lenders notice the quality of what you give them. Small things that make a big difference:
- A clear purpose in one or two sentences. “To buy a second coffee machine so we can serve the morning rush faster” beats “general business use”.
- A realistic amount. Borrowing what you need, with a sensible buffer, shows you’ve thought it through.
- Honesty up front. Mentioning a past default or ATO debt early is far better than a lender finding it later.
- Tidy statements. A dedicated business account with regular deposits and few dishonours.
- A repayment story. How the loan will be paid back, and what happens in a slow month.
business.gov.au also suggests checking a lender’s name or ABN on ASIC’s registers before you apply, and asking for feedback if you’re turned down. Both are sound advice.
What should you do next?
Take the list above and mark each requirement “ready”, “nearly” or “needs work”. Then read the Stage 2 lesson for anything marked “needs work”. You’ll be surprised how many “gaps” are fixable in weeks, not years.
Want a real person to look at your list?
You don’t need to be perfect to ask. You need to be honest. The best next step is a quick conversation with someone who knows what lenders actually accept.
Our enquiry takes about a minute. It doesn’t involve a credit check, and your details won’t be flung out to a line-up of lenders. A real person reads your answers, tells you which requirements you already meet and which matter most for your situation, then explains your options plainly. Please fill in the form accurately, especially turnover and time trading, so the match is right first time.
Frequently asked questions
What are the minimum requirements for a business loan?
At a minimum you'll need an active ABN, identification, a business purpose for the money and some evidence of how the business trades, usually recent bank statements. Beyond that, requirements depend on the loan type, the amount and whether property security is offered.
Do I need a business plan to get a loan?
business.gov.au notes lenders usually want to see a business plan. Many non-bank lenders focus more on bank statements for smaller unsecured loans, but a short, clear plan explaining what the money is for and how it'll be repaid always helps.
Can I get a business loan with no financial statements?
For some loans, yes. Unsecured options are often sized on bank statements rather than full accounts, and property-secured loans can rely on the property. Larger unsecured amounts and bank loans usually need financials.
Is there a minimum credit score for a business loan?
There's no single number that applies everywhere. Each lender has its own policy, and bad credit is considered case by case, particularly where property security is available.
What will make a lender say no?
Common reasons include very short trading history with no security, bank statements showing frequent dishonours, undisclosed debts, an unclear purpose, or repayments that don't fit the business's cash flow.