Dos and don’ts of commercial loans – before you start

Tuesday 06 July, 2021

So you’re a business owner. Maybe you want help managing your cash flow, or you’re looking to fund your growth, or you want to buy equipment for your business. But to do it, you’ll need some extra funds.

Excellent. Let’s go and ask for some money!


Just like your first relationship, poor planning and preparation will lead to rejection and heartbreak when it comes to commercial loans. To maximise your chances of being approved for your business loan, make sure you take note of the following.

DO: Have a solid business plan

Your lender will want to understand your financial situation and business goals – and make sure they are achievable. You may think you’ll make a billion dollars within a year, but your business plan will probably say otherwise. Having a comprehensive business plan will help the application process.

DON’T: Forget your supporting documents

As well as having a business plan, you’ll also need to provide additional background information about your business – including financial records, cash flow projections, assets and liabilities, and a business case for your loan.

Find out what is required for your application here.

DO: Choose the right type of loan

It’s easy to be overwhelmed by the number of commercial loan products available. Speak to a finance professional to make sure you are applying for the right type of loan for your needs. They can help you to navigate: secured or unsecured loans, fixed or variable interest rates, potential costs, interest payments, hidden charges or terms, different tax and GST implications for each loan type – and more.

DON’T: Be unrealistic about your ability to make repayments

Use a loan repayment calculator to give you an understanding of what you can afford to repay – but don’t take this as the final word. It’s highly recommended that you also consult a finance professional to provide objective and data-based advice about your financial situation.

DO: Get advice from a trusted provider

We’d love to help you out – and no loan is too complex for our team to consider. Contact our brokers to chat about how we can help you achieve your business financial goals.

You might also like...

Finance Brokers Tas Campaign 2 7016px 300dpi 68

Redraw vs Home Loan Offset Account

When you take out a home loan there are a few options you can choose to make repayments more manageable. However, choosing a financial institution and interest rates aren't the only things you need to consider. It’s also important to look for eligible home loan options which can reduce your interest repayments and give you flexibility to pay off your home loan sooner.

Fbt hobart

Get into your first home sooner with a parental guarantee!

Buying a house is likely the biggest investment you will ever make. Over the last three years, Tasmania has seen record rises in real estate prices meaning saving for a deposit to get your start in the property market is no small task. Recently released statistics show that almost 60% of first home buyers rely on help from the 'bank of mum and dad' when buying their first home.

Finance Brokers Tasmania Jake Birtwhistle10

Refinancing to Make The Most from the Equity in Your Home

Refinancing your home loan could be a value saving option if you're looking to access additional funds. With housing prices rising so dramatically over the last couple of years, existing homeowners have the opportunity to access the equity in their home to spend on things like home improvements, debt consolidation, buying a new car or another large ticket item such as a caravan or motorbike. You could even help your child break into the housing market!

Finance Brokers Tasmania Gary Watson

Is a Reverse Mortgage a Good Idea to Help in Retirement

A reverse mortgage is similar to a home loan but without the need to make regular payments. It gives people living on a pension or fixed income the ability to draw on part of the equity in their home; enabling them to live more comfortably.