Insights · Finance · 28 October 2026

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Getting lender-ready: what a bank wants to see before lending to your business

Whether it’s an overdraft for the January dip, a new truck or a second site, a lender’s first question is the same: can this business comfortably meet the repayments? The owners who get quick answers are the ones whose numbers already tell that story.

What lenders usually ask for

Every lender sets its own list, and it changes with the size and type of loan. For an established business, expect most of these:

1. Two years of financial statements. A profit and loss and a balance sheet, ideally prepared or reviewed by an accountant. If last year’s accounts are more than about 12 months old, expect a request for interim or management accounts too.
2. Tax returns and notices of assessment for the business and, for a company, usually for the directors as well.
3. Recent BAS, often the last four quarters.
4. An ATO portal statement showing what’s been lodged and paid, and anything still owing.
5. Bank and loan statements, plus details of leases, hire purchase and other finance already in place.
6. Aged debtors and creditors. Who owes you, who you owe, and for how long.
7. A cash flow forecast (and sometimes a business plan), especially for a bigger loan, a new venture or a business that has changed recently.
8. Your personal position. A statement of assets and liabilities, and details of other debts and living costs, particularly where directors guarantee the loan.

What they’re really reading

• Serviceability. Is there enough steady cash left after costs, tax and existing repayments to cover the new repayment with a buffer? Profit helps, but lenders look through to cash. See cash flow vs profit.
• Tax hygiene. Lodged on time, paid on time, or on an agreed plan. A surprise ATO debt is one of the most common reasons an application stalls. If that’s you, read owe the ATO? what to do next first.
• A clean balance sheet. Loans to and from directors, old assets still on the books, and unexplained “suspense” balances all invite questions. In a company, director loans can also raise Division 7A issues.
• Debtor quality. A long tail of old invoices suggests cash is stuck. Chasing them before you apply helps twice.
• A believable forecast. Realistic assumptions, built from your actual history, showing the business with the new repayment already in it.

A four-step tidy-up before you apply

1. Finalise and lodge. Get last year’s accounts and returns finished and any late BAS lodged. Check the BAS and tax due dates.
2. Close a clean month. Reconcile the bank, clear suspense, review debtors and work in progress. The month-end close checklist covers it.
3. Build the forecast. A rolling 13-week cash flow forecast for the short term, plus a 12-month view that includes the new repayment, GST, PAYG and super.
4. Write the one-page story. What the money is for, how it makes or saves money, how it will be repaid, and what happens if sales dip. Lenders lend to a plan, not just a set of accounts.

Pulling the numbers together into that story is a big part of what a fractional CFO does. For equipment specifically, see finance for equipment, utes and trucks.

Quick answers

What documents do banks usually ask for with a business loan?

Commonly two years of financial statements (profit and loss and balance sheet), recent BAS, tax returns, an ATO portal statement, bank and loan statements, aged debtors and creditors, and for some loans a cash flow forecast and business plan. Each lender sets its own list.

Why does the ATO portal matter to a lender?

It shows whether your BAS, PAYG and income tax are lodged and paid. Overdue lodgments or an unplanned ATO debt are among the first things a lender asks about.

How far ahead should I get ready?

Ideally a few months. That leaves time to finalise last year's accounts, catch up any late lodgments, tidy the balance sheet and build a forecast before you need the money.

Sources

• business.gov.au: Apply for a business loan
• Australian Banking Association: Financial history and forecasts
• ATO: Record keeping rules for business

Related

• Cash flow vs profit
• The 13-week cash flow forecast
• All insights

Related reading: Working capital explained · Cash rate 4.60%: a cash flow plan

Related reading: Cash flow finance options compared

Related reading: How to read a balance sheet

General information only. This doesn’t take your circumstances into account and isn’t tax, financial, credit or legal advice. Each lender sets its own requirements. PRM does not provide credit assistance. Talk to your accountant or registered tax agent before acting. PRM is not a registered tax agent; tax agent services are provided by Australian Tax & Super Pty Ltd (TPB 25291395).