Business loan documents: a checklist for every level of loan

The fastest way to slow down a business loan is to find out, halfway through, that a key document is missing or out of date. The fastest way to speed one up is to have the right file ready before you start. What counts as “right” depends on the size and type of loan, so here is a practical checklist broken into levels.

Level one: fast unsecured loans

For smaller unsecured business loans and short-term working capital, lenders usually keep it simple:

• Photo ID for each director, such as a driver licence or passport
• The company’s ABN and ACN
• Three to six months of business bank statements, often shared through a secure read-only link
• Basic details of the business: industry, trading address and how long you’ve been operating
• A short note on what the money is for

Many of these loans can be assessed within a day once the statements are in.

Level two: larger cash flow loans and lines of credit

As loan size and term increase, lenders want a fuller view:

• Everything from level one, usually with six to twelve months of statements
• Recent BAS lodgements
• Management accounts, such as a year-to-date profit and loss and balance sheet
• A debt schedule listing every loan, lease and facility, with balances and repayments
• An aged debtors and creditors list, particularly for invoice finance
• An ATO account statement if there’s any tax owing

Level three: bank-style and long-term loans

Banks and lenders offering longer terms typically want:

• Two years of financial statements and company tax returns
• Personal tax returns for the directors, in many cases
• A statement of assets and liabilities for each guarantor
• Details of any related entities, such as trusts or other companies
• A cash flow forecast for growth or acquisition loans

Property-secured loans

If property is involved, add:

• Title details or a recent rates notice for each property
• Statements for existing loans secured on the property
• Leases and rental statements for investment or commercial property
• The trust deed, if the property is held in a trust
• Your exit strategy evidence for short-term loans, such as a sale contract or refinance pre-approval

Tips to get your file ready sooner

• Lodge outstanding BAS and returns. Even if you can’t pay, lodged is better than unlodged.
• Keep business and personal spending separate. It makes statements much easier to read.
• Prepare a one-page summary. What the business does, what you need, why and how it’ll be repaid.
• Explain anything unusual upfront. A dip in revenue, a dishonour or a tax debt is better explained than discovered.
• Check the details match. Names, addresses and ABNs should be consistent across documents.

Why a one-page summary matters

Assessors work through many files a day. A short summary at the front of yours tells them what they’re looking at and why it makes sense before they open a single statement. Cover what the company does and for how long, how much you need and what it’s for, how the loan will be repaid, what security is available, and anything unusual the documents will show. Keep it factual and plain. It shapes the assessor’s first impression and often answers the questions that would otherwise come back to you one at a time over several days.

Documents for companies with trusts or related entities

Many Australian businesses trade through a company that sits alongside a family trust, a holding company or a separate property entity. Lenders need to understand how those pieces fit together, because the borrower, the guarantor and the security owner may all be different. Have a simple structure chart ready showing who owns what, the trust deed and any amendments, and the details of each trustee. If a related entity is giving security, the lender’s solicitor will check that it has the power to do so and that it benefits from the arrangement. Sorting this out early prevents one of the most common causes of delay at the settlement stage.

Keeping documents safe

Only share documents through secure channels, and be wary of anyone asking for passwords or full online banking access. Reputable lenders and their providers use read-only connections or secure uploads. The ATO also sets record-keeping rules that make it easier to produce what lenders need when the time comes.

Start with the basics

You don’t need everything to start. Tell us about your company and what you need through our quick enquiry form. Enquiring involves no credit check, your file stays with one team, and a real person will tell you exactly which documents your loan is likely to need, so you only gather what matters. See what you’ll need.