The Australian economy is going strong, and there is plenty of room for growth! You have a great idea and you want to focus part of your existing business on making it happen, but you are short on the funds you need to get the new project up and running, so you are going to have to get a business loan. Now your may be wondering, how do I go about this?
The answer to this question has a number of variables, and some points may differ depending on your location, so let’s use the average business loans specs in Sydney as our example. Now, let’s consider the first steps you will need to go through to get your loan so you can get to work!
When you are applying for a business loan, you, along with any partners, guarantors, or directors in your group, will need to provide the potential financial provider with the following documents:
- Your financial statements prepared by an accountant
- Your bank statements
- Your proof of individual income
- Your identification
-These documents will be carefully considered by your financial provider to help them understand your business’s current financial situation. There are a variety of types of business funding that you can apply for, along with business loans, there are also overdrafts and credit cards. If you want to apply for asset finance, it might be necessary to provide additional information. Let’s take a closer look at those documents now!
Your Financial Statements – These are generally an income statement and a balance sheet along with a statement of your current cash flow. These documents will be used to determine whether or not you can make your existing and proposed repayments. Your financial provider may also ask to see your most recent tax returns, print-outs of statements from your Australian Taxation Office portal, and business activity statements. If there happen to have any self-managed super funds or trusts that are related to your business, you will probably be asked to produce the pertinent additional documents, as well. It’s always a good idea to ask your potential lender exactly what they would like to see!
Your Proof of Individual Income – If it is the case that you are the director or a shareholder in your company, they are going to ask you about your personal income, so prepare your two most recent individual tax returns and an Australian Taxation Office notice of assessment. If you are also earning additional income unrelated to your business, it will probably be in your best interests to provide them with that information, too. An example of this might be a rental statement from a property you are leasing out.
Your Bank Statements – You will be required to show your financial provider your latest bank statements, either on paper or with electronic copies.
Your Identification – If you are a new customer, you will be asked to provide current valid Australian identification like a driver’s licence or passport. If you are an existing customer, thy will already have that on file.
Those are the basics, good luck with your new business project!
