The questions a lender will ask about your business loan

Nerves about a lender call usually come from not knowing what you’ll be asked. Once you’ve seen the questions, there’s not much to be nervous about. They’re practical, and most take a sentence to answer.

What will the lender ask first?

The opening questions set the scene:

• How much do you need? A range is fine if you’re unsure.
• What’s it for? Stock, equipment, a fit-out, a tax bill, working capital, buying a business.
• When do you need it? Helps the lender understand the timing, not a test.

These three answers alone often rule options in or out. A short-term need for a known purpose suits a different structure from ongoing working capital.

What will they ask about the business?

Question	Why it matters	A simple answer looks like
How is the business set up?	Who the borrower is, who signs	“Company, two directors”
How long have you been trading?	Track record	“Since March 2022”
What’s the typical monthly turnover?	Unsecured options are sized on it	“Around $45k, busier in summer”
Is it seasonal?	Repayments need to suit the cycle	“Quiet June to August”
Who are your main customers?	Concentration risk	“Mostly local builders, no one over a third”
Are you GST registered?	Which documents are relevant	“Yes, quarterly BAS”

If you trade through a trust or a company acting as trustee, say so. It changes the paperwork, as our company and trust documents page explains.

What will they ask about existing debts?

Lenders want the full picture of what’s already owed:

• other business loans or lines of credit,
• equipment or vehicle finance,
• credit cards used for the business,
• ATO debt, and whether it’s on a payment plan,
• for property owners, the mortgage balance.

This is the section people are most tempted to shade. Please don’t. It all appears in bank statements, credit files or ATO records eventually. Past credit issues and ATO debt are considered case by case, and honesty makes that consideration far easier. If there’s a tax debt, see your ATO statement of account.

What will they ask about security?

• Do you own property? Residential or commercial.
• Who owns it? Everyone on the title matters.
• What’s owed on it? Roughly.

Property security opens up options from $20,000 to $5,000,000 and can help where credit history or paperwork is patchy. Unsecured options, typically $5,000 to $500,000, rely more on turnover and bank statements.

What’s the most important question?

“How will the loan be repaid?”

It’s the question every lender cares about most, and the one owners often haven’t thought through. Good answers are specific:

• “From ongoing profit; the new equipment adds capacity we’re already turning away.”
• “When the contract pays out in about four months.”
• “By refinancing to a bank loan once this year’s accounts are lodged.”
• “From the sale of a property we already have under contract.”

If you’d like help working out an answer, that’s exactly the kind of thing we talk through. Start with the short enquiry and we’ll take it from there.

What if I don’t know an answer?

Say so. “I’m not sure, I’ll check with my accountant” is a perfectly good answer on a first call. Guessing and being wrong causes more trouble than admitting you need to look something up.

A few figures worth knowing roughly before you talk to anyone:

• average monthly turnover over the last six months,
• total of existing business repayments per month,
• any tax owing,
• the approximate value of any property and what’s owed on it.

Will the lender ask about me personally?

Often, a little. Business.gov.au lists personal financial information among the things lenders may want to see, and for small businesses the owner and the business are closely linked. You might be asked about:

• your role in the business and how long you’ve been in the industry,
• whether you’ll be personally guaranteeing the loan,
• for sole traders and guarantors, significant personal debts,
• any past credit issues you’d like to explain.

None of this is intrusive for the sake of it. It helps the lender understand the people behind the business, which matters most when the business itself is small or young. Our page on business loans and your personal credit file covers why.

Illustrative example: first-time nerves

Illustrative only.

A dog groomer who’s never borrowed for the business expects a grilling. The call covers seven questions: amount, purpose (a second van), trading history, turnover, existing debts (a small car loan), property (none), and repayment (the second van doubles bookings she’s currently turning away). She doesn’t know her exact turnover, gives an estimate, and confirms it later from her statements. That’s the whole “interrogation”. If it’s your first time too, applying for your first business loan has more.

Answer a few easy questions

Now you’ve seen the questions, the enquiry should feel easy. It takes about 60 seconds, there’s no credit check when you first enquire, and your details stay with our own lending team rather than being circulated to a pile of lenders. A real person calls and walks through the rest in plain English.

Please answer as accurately as you can, and flag anything that’s an estimate. That’s what lets us match you to the right option the first time around.

Answer the first few questions →