Understanding how lenders think can help owners prepare better information and avoid avoidable delays. Exact criteria vary between lenders, but several themes appear consistently.
1. Trading history and business profile
Lenders commonly review how long the business has been operating, the industry, ownership structure, ABN details and whether the business model is easy to understand.
2. Revenue quality
Revenue is not assessed only by size. Lenders may consider consistency, customer concentration, seasonality and whether recent bank activity supports the story being presented.
3. Cash flow and repayment capacity
The central question is whether the business can repay the proposed facility while still meeting operating costs, tax, wages, rent and existing finance commitments.
4. Conduct, existing commitments and purpose
Account conduct, current debts (including ATO payment plans) and a clear use of funds all shape the conversation. Some facilities are unsecured; others may involve property, assets or personal guarantees. Structure depends on amount, purpose, lender and risk profile.
This article is general information only. Lending decisions depend on lender policy and the specific circumstances of the business. It is not credit advice and not a loan offer.