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Business Loan Checklist
When it’s time to kickstart or boost your business with a business loan, there are a few things you’ll need to get organised. Make sure you can give your lender a clear picture of your financial situation. This will help keep the loan process running smoothly and improve your chances of approval Our simple 5-step business loan checklist will prepare you for what’s to come and help relieve that pre-appliction stress. Read on to learn about different types of business loans and how to get started.
- What is a business loan?
- Business loan checklist
What is a business loan?
A business loan is a lump sum of money that you borrow to help you start or grow a business. They are offered through banks or other financial institutions. You can generally choose between either a secured or unsecured loan.
If you use a loan broker like Oceania Finance, you can fast-track the application process. The broker will source the best deals for you and explain the key factors to consider, so all you have to do is pick one. Business loan applications are made simple and easy with the help of our expert brokers. So you can get the finance you need faster.
Types of business loans
There is a range of business loans available to suit every need.
- Vehicle: To buy or lease commercial vehicles. Business vehicle loans can finance trucks, trailers, buses, and more.
Learn more: vehicle loans
- Cash flow: An easy loan option to boost your cash flow. Great for covering unexpected expenses, new business opportunities, equipment purchase, and more.
Learn more: cash flow finance
- Low doc: Having all the right documents to hand is tricky. A low doc loan is the best choice for people who don’t have all the standard necessary financial information – or if you just don’t want the hassle of all the paperwork.
Learn more: low doc loan
- Agriculture: Specialised finance for farmers and agriculture businesses to manage business expenses, expand agricultural operations, or cover any other costs.Learn more: agriculture finance
- Equipment: This type of loan can cover the cost of upgrading or updating business equipment.
Learn more: equipment loan
Business loan checklist
1. Find a business loan broker
When searching for a business loan broker, make sure they’re experienced in business finance. You might ask them about their past experience and how many lenders are in their network. You don’t need to use a broker. But it helps to make the process smoother and can save you money on your loan. As a business owner, there’s no end to the responsibilities demanding your time. Brokers can give you back some of that time by researching lenders, negotiating for better rates, and dealing with all the paperwork for you.
2. Finish your business plan
Loan brokers will need to see your business plan mapped out. Keeping your plan clear but thorough will allow the lender to quickly review your situation and help demonstrate your creditworthiness. Your plan should include:
- Profit and loss
- Cash flow
- Financial statements
- Market analysis
- How the loan will be used
- Balance sheet
- Any risks and how they will be managed
3. Review your credit report
Before applying, you should review your personal and business credit report. Check that there are no errors or issues that need to be resolved before you apply. If you have any concerns about it, contact your business loan broker.
4. Check you’re eligible
As with any loan, a business loan will have certain eligibility criteria, for example:
- Be 18 years old or over
- Have not filed for bankruptcy
- Be a permanent Australian resident or relevant visa holder
- Be an Australian tax resident
- Have an ABN/ACN
- Have a good credit score – if your credit isn’t perfect, a business loan broker can help determine if a business loan is suitable for you
These are common business loan eligibility requirements in Australia. But every lender has different requirements, so make sure to review their conditions directly before you apply.
5. Submit business loan documents
This is the part of the loan process many people dread. And with good reason. The documents you will need to provide will depend on a number of factors, including what loan and lender you choose, how much you’re borrowing, what type of business you have, how long you have been operating and on.
Here is a checklist to guide you through some of the key documents you are likely to need:
- Your ABN/ACN
- Personal identification
- Business verification
- Business and personal financial statements
- Proof of individual income
- Tax return report
- Cash flow projections
- Business plan
- Details of the asset being used as collateral (for secured loans)
Keep in mind that start-up businesses typically need to provide more documentation than other businesses due to the higher risk posed to the lender.
Knowing what documents to submit and what information to include can be a nightmare to deal with. When you use a broker they take that burden off your shoulders. And you can rest easy knowing they will include all the information needed to give you the best chance of approval with your application.
Apply for a business loan at Oceania Finance
All of that still sounds like too much to deal with by yourself? The team at Oceania Finance has been helping Aussies get business finance for over 20 years. Relax while we take care of the application process and negotiate with our trusted lenders for the best deals.
Business loan checklist: FAQs
How long does it take for business loan approval?
Approval time for a business loan can vary a lot depending on a number of factors. Some of these include:
- What type of loan you apply for – E.g. secured vs unsecured, low doc vs full–doc.
- The lender you choose – E.g. bank vs private lender.
- How much you need to borrow – Small loans could be approved in a matter of hours, whereas the process for larger loans often takes anywhere from weeks to months.
- Your business – Including what type of business you have, how long you have been operating, and how thorough your business plan is.
- Your financial situation – E.g. if you have a bad credit history or several other loans, it can take longer to assess your creditworthiness.
- How prepared you are – E.g. required documentation and evidence, how well you understand the loan process, whether you have a loan broker to assist.
- Whether the lender needs to investigate further – Sometimes lenders will need further information from you after their preliminary assessment.
How hard is it to get a business loan in Australia?
This can depend on a few factors, including how much you want to borrow, your credit history, financial position, type of business, and whether you want a secured or unsecured loan. To give yourself the best chance of success, it’s best to use a broker. Oceania Finance has been helping Aussies secure business finance for over 20 years, so get in touch today.
Is a business loan a good idea?
Loans are a great way to start a business or help it grow. With a business loan, you can upgrade your equipment, buy a new vehicle, expand into a new market, hire more employees, offer new products and more. More importantly, it can help separate your personal from your business finances. There are some good deals available on business loans. Your broker will be able to advise further in more detail for your particular situation.