There is no single national checklist for a business loan in Australia. Every lender sets its own credit policy, and what you need shifts with the facility — an equipment loan secured against a machine is assessed differently from an unsecured working-capital loan.
That said, most Australian business lenders build their assessment around the same five things: who is borrowing, how long you have been trading, what the business earns, what is securing the loan, and your credit history. This page sets out what sits behind each one, and where the requirements commonly vary.
If you would rather talk through your own situation than read the general picture, speak to Tradie Finance.
1. Entity, ABN and GST
Lenders start with who is actually borrowing — a sole trader, partnership, company or trust. The structure affects the documents requested, who signs, and whether directors are asked to guarantee the debt.
- ABN. An active ABN is close to universal for commercial finance. Many lenders also apply a minimum ABN age. There is no legislated minimum — the threshold is set by each lender’s credit policy, and shorter-ABN options do exist through some non-bank lenders.
- GST registration. Businesses must register for GST once GST turnover reaches $75,000 or more, per the ATO (Registering for GST). Some lenders ask for GST registration as a proxy for trading scale; others do not require it.
- Entity documents. Companies and trusts are usually asked for ACN details, and trusts for a copy of the trust deed.
GST registration is a tax obligation, not a lending rule. Whether a lender also requires it is a separate, lender-specific question.
2. Trading history
How long the business has been operating is one of the strongest inputs into a commercial credit decision. Longer trading history generally widens the lender panel available to you and can improve pricing.
Newer businesses are not automatically excluded. Where trading history is short, lenders typically lean harder on the other four factors — particularly security and the directors’ own position. We cover that situation on our startup business finance page.
3. Income evidence: full doc, low doc and alt doc
This is where requirements differ most, and where a broker adds the most value.
| Full doc | Low doc | Alt doc / bank statement | |
|---|---|---|---|
| Typically supplied | Financial statements and tax returns, usually two years; ATO portal or BAS | Self-declaration of income, often with an accountant’s confirmation, plus BAS | Business bank statements over a recent period |
| Commonly suits | Established businesses with current, complete financials | Businesses whose financials are not yet finalised | Businesses whose cash flow is clearer in the account than in the accounts |
| Trade-off | Usually the widest choice of lenders and sharpest pricing | Fewer lenders; pricing may reflect reduced verification | Fewer lenders; often assessed on turnover patterns |
Documentation level is not a measure of the quality of your business — it describes what evidence is available right now. Many established, profitable trade businesses borrow on low-doc or alt-doc terms simply because their financials are with the accountant.
There is more detail on our low doc business loans guide and our low-doc loans page.
4. Security
Security shapes both what you can borrow and what evidence is required.
- Asset-secured finance — the asset being purchased is the security. This covers asset finance, equipment finance and chattel mortgage. Lenders assess the asset as well as the business — type, age, condition, and whether it is bought from a dealer or privately.
- Unsecured finance — no asset is taken as security. See unsecured business loans. Assessment leans more heavily on trading performance and cash flow, and terms are generally shorter.
- Receivables-backed — invoice and debtor finance is assessed on your debtors as much as on you.
- Revolving facilities — a business overdraft or business line of credit may be secured or unsecured depending on the lender and the limit.
Director or personal guarantee. For company and trust borrowers, lenders commonly ask directors to guarantee the loan personally. This is a significant commitment and should be understood before signing. Whether a guarantee is required, and in what form, varies by lender, entity and facility.
5. Credit history and serviceability
Lenders look at the credit file of the business and, usually, of the directors — including defaults, judgments, and how existing commitments have been managed. They also form a view on serviceability: whether the business can meet the proposed repayments alongside its existing obligations.
A less-than-perfect credit file does not automatically end the conversation, but it narrows the panel and can affect pricing and structure.
What varies, and what doesn’t
Fairly consistent across lenders: an active ABN; identification; some evidence of income or turnover; a credit assessment; and a clear picture of what the money is for.
Varies materially by lender and product: minimum ABN age; whether GST registration is required; minimum turnover; how many years of financials; whether alt-doc is accepted; deposit expectations; whether a director guarantee is required; maximum term; and asset age limits on secured facilities.
This is why the same business can be declined by one lender and approved by another on the same information. Nothing on this page is an approval criterion, a guarantee, or a commitment from any lender — it is a general description of how commercial credit assessment tends to work in Australia.
Working out what you can borrow
Before gathering documents, it can help to sanity-check the numbers. The business loan calculator gives an indicative repayment on a given amount, rate and term, and the equipment finance calculator does the same for asset purchases. Both are estimates only.
Where to go next
- Business loans and finance — the full range of facilities
- Bad credit business loans — how lenders assess impaired credit and which structures are more workable
- Small business finance
- Asset finance · Equipment finance · Chattel mortgage
- Unsecured business loans · Business overdraft · Invoice finance · Business line of credit
Business loan requirements: FAQs
What documents do I need for a business loan in Australia?
It depends on the lender and the facility. A common starting set is identification, ABN and entity details, and evidence of income — financial statements and tax returns for full-doc, or BAS and business bank statements for low-doc and alt-doc. Asset-secured finance also needs details of the asset. Ask your broker for the specific list before you start gathering.
How long does my ABN need to be active?
There is no legislated minimum. Lenders set their own ABN-age requirements, and they differ. Options exist for newer ABNs, generally through non-bank lenders and often with different pricing or structure.
Do I need to be registered for GST?
GST registration is required by the ATO once GST turnover reaches $75,000 or more. Separately, some lenders treat GST registration as evidence of trading scale — but not all require it.
Can I get a business loan without financials?
Low-doc and alt-doc facilities exist for businesses whose financials are not finalised, generally assessed on BAS or business bank statements instead. Fewer lenders offer them, and terms may differ from full-doc lending.
Will I have to give a personal guarantee?
For company and trust borrowers, directors are commonly asked to guarantee the loan. Whether it is required, and in what form, depends on the lender, the entity and the facility. It is a significant commitment — understand it before signing.
Can I get a business loan with bad credit?
Credit history is one input among several, and a default does not automatically end the conversation — but it narrows which lenders will consider the application and can affect pricing and structure. It is best discussed directly with a broker who knows the panel.
Written and reviewed by the Finance Director at Tradie Finance.
This article is general information only and does not constitute credit or financial advice. It does not describe the policy of any particular lender. Tradie Finance operates under Australian Credit Licence 506065 (Five Tees Pty Ltd). Lending is subject to approval, lending criteria, terms, conditions and fees.
If the borrowing is to fund a business purchase, our guide to business acquisition finance explains how the price is usually split between assets and goodwill.