3 Ways to Increase Your Chances of Obtaining an Australian Commercial Loan

3 Ways to Increase Your Chances of Obtaining an Australian Commercial Loan

When the topic of living in Australia comes to mind, it’s no secret that it’s one of the best places in the world to settle down because of the quality of life it offers within its borders.

For those seeking financial freedom and assistance, Australia is the place to be because of the sheer amount of lenders that are available to serve anyone’s needs. Business owners, for instance, have a wide range of easily accessible options that they can avail of for any purpose, whether it’s for expansion or financial rescue efforts.

Out of all the different loan options to choose from, commercial loans are the highest-rated options and can be easily availed of with minimal requirements and quick granting time. Before you head over to your nearest dependable financial institution, however, there are a few important tips to consider so that you can best meet a lender’s criteria when securing a commercial loan:

1. Prepare your financial paperwork and keep every document ready

 

One of the most essential tips to consider when securing financial assistance is that adequately-prepared financial paperwork can go a long way. If you’re looking to seek financial assistance for your business’s needs, here’s a checklist of essential documents that you’ll need to prepare before handing over your application form:

  • A business plan
  • Accompanying forecasts on future profits, running costs, expense reductions, and liabilities
  • Profit and loss statements from the past three to five years
  • Income tax returns from your operations and other additional tax documentation
  • An updated and bank-certified list of your company’s assets and liabilities

Aside from the documents mentioned above, a lender may ask for additional pieces of documentation, so make sure you jot them down and submit accordingly!

2. Bring a solid business plan with you

 

Speaking of business plans, it is vital to note that the chances of successfully obtaining a commercial loan exponentially increase when the plan is professionally-written and is as detailed as possible. Creating a solid business plan entails considering the right details about your business and outfitting your document with a well-detailed narrative that spans from its inception up to the present!

3. Apply for an amount that you can easily and realistically repay

 

In a business landscape that continues to grow more competitive every year, it is highly essential that you stay as realistic as possible regarding your finances, even more so when it comes to calculating your ability to make repayments!

A common mistake that business owners make when they take out a commercial loan is that they apply for an amount that far exceeds their ability to repay. Given that every business has its own good and bad months which are arbitrary in both length and frequency, it’s optimal to apply for a principal amount that has monthly repayments you can handle in even the worst of times.

If your financial advisor or lender says that you can’t meet your loan repayments based on your business plan and current pieces of supporting documents, then it’s best to scale down and opt for a lower principal amount.

Conclusion

Applying for a commercial loan and successfully receiving the amount you need is an endeavour that entails taking the right tips into consideration. By using the three simple, yet effective tips mentioned above, you can successfully land a loan with any Australian lender in no time and give your business the financial foundation it needs to grow and scale!

Looking to grow your business with the help of a commercial loan that best suits your needs? Get in touch with our experts in Perth today to see how we can help!