Business Loan Documents: What Lenders Usually Ask For

Quick answer: Most lenders ask for identification, business details, bank or financial statements and information about what the money is for. The exact list varies by lender and the type of finance, so ask what your application will need before you apply.

General information only. Requirements vary by lender and product.

Why documents matter

A complete, accurate application is easier for a lender to assess. Missing or inconsistent information is one common cause of avoidable delays. Having your documents ready does not guarantee approval, but it can help keep things moving.

The usual documents

1. Identification

Identification for the business owners, directors and any guarantors. Lenders must verify who they are lending to.

2. Business details

• ABN or ACN

• Business structure (sole trader, company, partnership or trust)

• Trust deed or company details where relevant

• How long the business has traded and what it does

3. Financial information

Depending on the amount and the lender, this may include:

• recent bank statements

• financial statements or tax returns

• a business activity statement (BAS)

• a list of existing debts and commitments

Some smaller or straightforward transactions need less. For example, some vehicle finance applications do not always require financial or bank statements, but this depends on the lender and your circumstances.

4. Details of what you are financing

• A quote or invoice for the equipment or vehicle

• For used or private-sale assets, details such as age, condition, serial or identification numbers and proof of ownership. A lender may also ask for a valuation or inspection.

5. Information about the purpose

For working capital or growth funding, lenders often want to know how the funds will be used and how the business will repay.

6. Extra items for new businesses

Newer businesses may be asked for a business plan, forecasts, contracts, or evidence of industry experience.

A simple pre-application checklist

• Photo ID for each owner, director and guarantor

• ABN or ACN and your business structure

• Most recent bank statements (lenders often ask for several months)

• Latest financial statements or tax returns, if you have them

• Details of current loans, leases and credit cards

• The supplier quote or invoice for what you are buying

• A short note on what the funds are for and how you will repay

You do not need to have everything perfect before you ask. A quick call to confirm what your particular lender needs can save you gathering documents you will not use.

Why lenders ask for this

Lenders assess the applicant's financial position and capacity to meet repayments. Bank statements and financials show how money moves through the business. Identification protects you and the lender from fraud. The detail you provide also affects the options available, which is one reason requirements differ between products and lenders.

How the documents differ by type of finance

Equipment and vehicle finance. The asset is central. Expect to give the supplier quote or invoice, the asset details and your business identification. For a straightforward new purchase such as a work ute, the paperwork can be light. For older, imported or privately sold equipment, a lender may ask for proof of ownership, a valuation or an inspection.

Working capital and cash flow funding. Lenders look closely at how money moves through the business, so recent bank statements and your latest financials matter more. Be ready to explain what the funds are for.

Invoice finance. The lender will usually want to see your accounts receivable, a list of customers who owe you money and some detail about those customers, because the unpaid invoices are what the funding is based on.

Commercial property and larger loans. These typically involve more documents again, such as details of the property, the entity that will own it, and a fuller picture of your assets and liabilities. A lender may also order a valuation.

Business acquisition. Expect to provide information about the business being bought, its financial history and the sale terms, as well as your own financial position and experience.

None of this is a guarantee of what a particular lender will ask for. Treat it as a guide to what to have on hand, and ask before you apply.

Mistakes that slow applications down

• Names, ABN or addresses that differ between documents.

• Bank statements with missing months or pages.

• An out-of-date quote or invoice for the asset.

• Not mentioning an existing debt or guarantee, which the lender may find on a credit check anyway.

• Leaving it until the last week before a purchase deadline to start.

Each of these is easy to fix before you apply and harder to fix once the lender is waiting on you.

Tips to avoid delays

• Ask up front what your lender needs.

• Check that the names, ABN and addresses match across your documents.

• Respond quickly to any request for more information.

• Compare suitable options before applying. Several unplanned credit applications can show on a credit file.

• Remember that approval and settlement are separate stages. After approval you may still need to provide a final invoice, insurance details and signed documents.

Common questions

Do I always need property as security?

Not always. Security requirements depend on the lender, the amount and the type of finance.

Can I apply without financial statements?

Sometimes, for certain products and smaller amounts. Many applications still need some financial information. It depends on the lender.

Will a broker handle the paperwork?

We can tell you what is needed, help you pull it together and lodge the application with suitable lenders. The lender makes the decision.

What if my credit history is not perfect?

Lenders consider the credit history of the business and its directors. Some may be more flexible than others. We cannot promise an outcome.

Does it cost anything to ask?

Your initial finance enquiry with Tattersalls Finance is No Cost. No Obligation. Lender fees, brokerage and other finance-related costs may apply if you go ahead with a loan. These vary by lender and product, so ask for them in writing before you proceed.

Ready to apply?

Tattersalls Finance can explain what your application will need before you submit it. Learn about Business Lending, see how long equipment finance approval takes, apply online or contact us.

General information only. Not financial advice. Lender criteria, fees and approvals vary and are subject to credit assessment.