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.