Quick answer
If you have a month before you need finance, use it. In week one, gather your documents and check what's missing. In week two, lodge overdue BAS or returns and reconcile your accounts. In week three, check your credit file, tidy existing debts and avoid new applications. In week four, write a one-page summary and approach the right lenders with a complete, consistent file.
Key points
- Week one: gather documents and spot the gaps.
- Week two: lodge, reconcile and tidy the accounts.
- Week three: credit file, existing debts, bank account habits.
- Week four: build your summary and approach the right lender.
- Starting early widens your options and can reduce cost.
Most business owners apply for finance when they need it, which is usually when time is shortest and the numbers look their least flattering. If you can see a funding need coming, perhaps a seasonal stock build, a new contract, an equipment upgrade or a tax bill, a month of preparation can make a real difference to the answer you get and what it costs.
Here’s a practical, week-by-week plan.
Week one: gather and assess
Start by collecting everything a lender is likely to ask for. Our business loan documents checklist sets this out by loan type, but the core list is:
- Photo ID for each director
- Company details: ABN, ACN, registered address and structure
- Six to twelve months of business bank statements
- Recent BAS lodgements
- Latest financial statements and tax returns
- A list of every existing loan, lease and credit facility
- An ATO account statement if anything is owed
- Property details if you might offer security
As you gather, note what’s missing or out of date. Overdue BAS, unreconciled accounts and old financial statements are the common gaps. That list becomes your plan for week two.
Also write down, in plain words, what you need the money for, roughly how much and for how long. This shapes everything else.
Week two: lodge and tidy
Lodge overdue returns and BAS. Unlodged returns worry lenders more than almost anything else, because they make it impossible to verify income. Even if you can’t pay the tax owing yet, lodging on time and contacting the ATO about a payment plan puts you in a much stronger position.
Reconcile your accounts. Work with your bookkeeper or accountant to bring the books up to date. Management accounts showing current-year trading can tell a better story than tax returns from eighteen months ago, particularly if the business has grown.
Separate personal and business spending. If they’re mixed, start keeping them separate now. It won’t change past statements, but it helps future ones and shows the lender good habits.
Chase overdue invoices. Collecting money owed to you improves your bank balance and reduces the amount you might need to borrow.
Week three: credit file and existing debts
Check your credit reports. Each director can request their personal credit report free from Australia’s credit reporting bodies; the OAIC explains how. Look for errors, such as debts that aren’t yours or paid defaults still showing as unpaid, and ask for corrections. Our page on credit files and scores explains what lenders look for.
Settle small defaults. If there are small outstanding defaults, paying them and getting the listing updated helps.
Avoid new applications. Each formal application can add an enquiry to your file. Hold off until you’re ready to apply properly.
Review existing debts. Close credit cards and limits you don’t use, because lenders often count them as fully drawn. If several short-term loans are debiting your account, consider whether consolidating them should be part of the new facility. See refinancing business debt.
Watch your account habits. For the rest of the month, avoid overdrawn days and dishonours, keep a steady minimum balance and bank all takings into the business account.
Week four: build your story and approach the right lender
Write a one-page summary. Cover what the company does, how long it’s traded, what you need, why, over what term and how it’ll be repaid. Mention any security available and briefly explain anything unusual the lender will see, such as a revenue dip, a tax debt or a past credit issue. Our guide on what a credit assessor sees first explains why this matters.
Check consistency. Make sure the turnover in your summary matches your statements, the debts you list match the debits visible, and names and numbers are the same everywhere.
Choose the right lender. Different lenders suit different situations. A bank may fit a long-established company with lodged financials and property. A cash flow lender may fit a strong trader without property. A specialist or private lender may fit a company with a tax debt or short history. Approaching the right lender first avoids unnecessary enquiries and declines.
Prepare for questions. Make sure the directors are available to answer follow-up questions quickly during the assessment.
If your need is ongoing, set up the facility early
If you expect to need funding regularly, such as for seasonal stock or progress-claim gaps, consider arranging a standby facility like a line of credit while things are calm. Facilities arranged before they’re needed are usually easier to get and better priced than urgent loans in a crisis.
What this month can and can’t change
A month can’t change your trading history, the value of your property or a past insolvency. But it can make sure your file is complete, current and consistent, that easily fixed issues are fixed, and that the lender sees your company clearly. Those improvements often decide whether a borderline application is approved, and on what terms.
Common mistakes in the final week
The last few days before applying are where owners often undo their good work. Some apply to several lenders at once “to see who says yes”, which stacks enquiries on the credit file. Others overstate turnover in the summary to make the deal look stronger, which an assessor will spot in minutes against the bank statements. A few forget to mention a recent loan or an ATO payment plan, hoping it won’t matter. Each of these costs credibility. A modest, accurate file sent to one well-chosen lender almost always does better than an inflated one sent to many.
Using your accountant well
Your accountant is one of the most useful people in this process. Ask them to bring the books up to date, prepare year-to-date management accounts, confirm your tax position and, if needed, write a short letter confirming income. Many lenders value an accountant’s involvement because it suggests the business is well run. Give your accountant a clear deadline at the start of the month so the paperwork is ready by week four.
A simple tracking list
Keep a short list on your desk and tick it off as you go: documents gathered, BAS and returns lodged, accounts reconciled, overdue invoices chased, credit reports checked, unused limits closed, summary written, figures cross-checked, lender shortlist chosen. When every item is ticked, you’re ready to apply with confidence rather than hope.
Start the month with a conversation
Tell us what’s coming and when through our short enquiry form. There’s no credit check to enquire, so it won’t affect your preparation. One team handles your file, and a real person will tell you exactly what to focus on during your thirty days so your application lands well. Plan your application.
Frequently asked questions
Is a month really enough to make a difference?
It can be. Lodging overdue returns, cleaning up statements and preparing a clear summary can turn a borderline file into a straightforward one.
Should I stop applying for other credit during this month?
Yes. Each formal application can add an enquiry to your credit file. Avoid new applications until you're ready.
Can I enquire with a lender during the month?
Yes. An enquiry that doesn't involve a credit check, like ours, can help you understand what to prepare without affecting your file.
What if I need the money sooner than 30 days?
Use the parts of this plan you can. Even a few days spent gathering documents and writing a summary helps.