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Posted By: Sylvia Flores - Senior Commercial Finance Writer at B.K Brokers | Date: 26/05/2025 5:34:49 AM
If you’ve been operating a business with an ABN for at least six months and are ready to take the next step in your growth journey, chances are you’ve considered applying for finance. Whether you need a new vehicle, updated equipment, a boost in working capital, or even commercial property — securing the right loan can be a game-changer.
But many business owners go into the application process blind, unsure of what lenders are actually looking for. That’s where this guide comes in.
At B.K Brokers, we help Australian businesses every day to navigate the commercial finance landscape. We know what funders prioritise, what pitfalls to avoid, and how to position your application for the best chance of approval. And if you’re still unsure what type of loan is right for you, start with our Ultimate Guide to Commercial Finance in Australia — a cornerstone blog that breaks down all your options in plain English.
Let’s dive into what lenders really want to see — and how you can prepare like a pro.
Lenders aren’t just looking at whether you can borrow — they’re assessing how likely you are to repay. Knowing their criteria gives you a huge advantage. It’s not just about ticking boxes — it’s about telling a clear, credible financial story.
Many applications are rejected not because the business isn’t viable, but because:
The paperwork was inconsistent or incomplete
The applicant didn’t understand the lender’s risk appetite
They applied for the wrong type of finance
By taking the time to align with lender expectations, you reduce the risk of rejection, avoid credit file damage, and often unlock better rates and terms.
While every lender is slightly different, most reputable funders — banks, fintechs, and private lenders alike — will start by looking for:
Most lenders want to see that your business has been trading under an active ABN for at least 6 months. Some unsecured loan providers may work with businesses under 12 months old, but most asset and commercial property finance lenders require at least 12–24 months.
Tip: If you’re a sole trader or contractor, your personal credit file may also be assessed alongside your ABN.
For loans above $50,000, being registered for GST is typically required. GST registration demonstrates that your business meets the $75,000 turnover threshold and is operating at a meaningful scale.
Monthly turnover is one of the key factors lenders consider. For unsecured loans, many lenders require a minimum of $5,000–$10,000 in monthly revenue, with some preferring more. For secured finance (like vehicle or equipment loans), revenue requirements vary depending on deposit, asset type, and term.
Be prepared to provide:
Last 3–6 months of business bank statements
BAS (Business Activity Statements)
Profit and Loss or basic financials
This helps lenders assess your cash flow consistency and determine whether repayments are manageable.
Understanding the core eligibility is one thing. But if you want to increase your chances of fast approval and potentially unlock better loan terms, here’s what lenders look for at a deeper level:
Lenders love consistency. Large one-off deposits followed by dry spells can raise questions. Aim to demonstrate stable income month over month. If you’re seasonal, it helps to explain that in your application.
Broker Insight: When applying through B.K Brokers, we help present your cash flow story clearly and positively — especially if there are seasonal patterns or irregularities.
Mixing personal and business income in the same bank account is a red flag. It’s confusing for lenders and makes your revenue harder to verify. Ideally, use a dedicated business account linked to your ABN.
Every time you apply for credit, it leaves a mark. Multiple applications in a short timeframe can damage your business credit profile — and signal desperation to lenders
Avoid this mistake: Don't shotgun your application to 10 lenders at once. It hurts your credit score and reduces approval odds.
Work with a broker like B.K Brokers who can assess your situation and submit to the most suitable lender first time around.
Be prepared to explain:
What you’re borrowing for
How it will help your business grow
How you’ll repay it
Even for unsecured business loans, a clear and commercial use of funds builds confidence with the lender.
Lenders check your ATO position. If you have outstanding BAS or tax debts, it could hurt your application. Keep your lodgements up to date, even if you can’t pay in full — showing compliance is critical.
If you have existing loans or maxed-out credit cards, consider paying them down before applying. Debt-to-income ratio is a major approval factor.
If you're seeking more than $250,000 or looking at a commercial property loan, a simple business plan or forecast can go a long way. It doesn’t need to be fancy — just show how the loan supports growth and how you plan to repay.
Submitting incomplete information (missing bank statements, mismatched ABN details, etc.)
Applying for the wrong product type (e.g. unsecured loan when asset finance would be a better fit)
Using inflated revenue numbers without proof
Not engaging a broker — direct applications to banks or fintechs often mean you’re missing out on alternatives
Fastest approval (often within 24–48 hours)
Based on turnover, time in business, and credit score
No property security required
Ideal for working capital, short-term needs
Medium-speed approval (1–5 days)
Secured against the asset itself (vehicle, equipment)
Lower interest rates than unsecured options
Good for tax-effective acquisitions
Suitable for businesses with equity in property but lacking other security
More flexible criteria, but higher interest
Often used for short-term or “urgent” scenarios
Longer approval timeline (2–4 weeks)
Requires property valuations, financials, and strong serviceability
Better rates and longer terms
Ideal for established businesses looking to invest or expand
For a full breakdown of these loan types and how they compare, see our Ultimate Guide to Commercial Finance in Australia.
If you’ve been operating for just over 6 months, you’re in a grey area — many banks still won’t touch you, but specialist lenders may. Here’s how to improve your case:
Provide all trading data (invoices, bank statements)
Show strong revenue trajectory
Keep credit file clean
Demonstrate demand for your services
B.K Brokers has access to non-bank lenders who support newer businesses — especially if you’re in high-demand industries like construction, logistics, or healthcare.
Trying to secure finance on your own can feel like trial and error. With over 40 lenders on our panel, we don’t just “apply and hope” — we strategically match your business to the right lender based on your history, industry, and goals.
Our job is to:
Package your application professionally
Minimise rejection risk
Negotiate better rates and terms
Save you time and stress
If you’re an ABN holder ready to grow your business but unsure where to start, let us guide you.
At B.K Brokers, we offer:
Transparent, obligation-free finance reviews
Real advice on your borrowing position
Fast access to unsecured loans, asset finance, and commercial funding
Human-first service, every step of the way
Don’t leave your application to chance — speak with a broker who puts your business first.
Contact us today for a no-obligation finance readiness check and explore your real funding potential.
Tags: how to get approved for business finance, business loan eligibility Australia, unsecured business loan eligibility, finance for new ABN holders, what do lenders look for in business loans, ABN business finance tips, commercial loan approval checklist, sma
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