What a business loan specialist will ask you on the phone, and why

Why so many questions?

A good first call can feel a bit like a quick interview. That’s deliberate. Every question a specialist asks is there to cross options off the list or keep them on it. Lenders differ enormously in what they’ll consider: some want two years of trading, some need property, some won’t look at ATO debt, some are comfortable with it. The questions are how the specialist narrows a big field down to the few that suit you.

Knowing what’s coming means you can answer quickly, and it takes the nerves out of the call.

Questions about the purpose and the amount

• What’s the money for? Purpose shapes the product. Buying equipment, covering a tax bill and bridging a property settlement are three very different loans.
• How much do you need? And sometimes: how did you get to that number? The specialist is checking the figure covers everything, including costs, so you don’t come up short.
• When do you need it? A date changes which lenders are realistic, because some move faster than others.
• How do you plan to repay it? From trading income, a sale, a refinance or an expected payment? The exit matters, especially for short-term secured loans.

If you’re unsure about the amount, our page on how much to ask for helps.

Questions about the business

• What’s the business name and ABN? Lenders confirm the business exists and check how long the ABN has been active. The specialist may look it up on the public register while you talk.
• How long have you been trading? One of the main sorting questions.
• What’s the structure? Sole trader, partnership, company or trust. This affects who signs and who guarantees.
• What industry are you in? Some lenders have preferences or exclusions by industry.
• Is GST registration in place? Often a signal of turnover size and a proxy for how formal the books are.

Questions about the numbers

The question	What it tells the specialist
Roughly what comes into the business account each month?	Whether unsecured options are realistic and what size
Is that steady, or does it swing with seasons or big jobs?	How a lender will read your statements
What business debts are there already?	How much room there is for another repayment
Are BAS and tax returns lodged and up to date?	Whether lodgements are a hurdle for some lenders
Is there anything owing to the ATO?	Which lenders will consider it, and how

Rough answers are fine. The detail gets confirmed from statements and documents later. For help describing trading figures, see how to talk about turnover.

Questions about property

If property could be part of the picture, expect:

• What type of property? Home, commercial, industrial, vacant land, investment.
• Where is it? Location affects how lenders value it.
• Who owns it? You personally, jointly with a partner, a company or a trust. Every owner will need to be comfortable signing.
• Roughly what’s it worth, and what’s owing? The gap between the two is the equity that might support a loan.

This is about options, not pressure. Plenty of owners have property and choose not to use it. Our guide to describing property as security goes further.

Questions about credit history

• Any defaults, late payments or judgments we should know about?
• Any lender said no recently?
• Any payment arrangements in place, with the ATO or a supplier?

These questions don’t involve checking your credit file. There’s no credit check when you first enquire. The specialist is asking so they can steer toward lenders that assess these things case by case. A default or late payment can stay on a consumer credit report for years, so mentioning it upfront saves time. See explaining past credit problems.

How to answer when you don’t know

“I’m not sure, I’ll need to check” is always a good answer. What causes delays is a confident guess that turns out wrong: a turnover figure that’s double what the statements show, or a property value from five years ago. If you can, give a range and say where it comes from: “Around $70k a month, from memory of the last quarter.”

A quick self-check before you ring

Run through these and note a rough answer for each. If you can answer most of them, the call will be quick and useful.

1. What’s the money for, in one sentence?
2. How much, and how did I get to that number?
3. When do I need it, and what happens if it’s late?
4. How will it be repaid?
5. How long have we traded, and under what structure?
6. What comes into the business account in a typical month?
7. What do we owe already, including to the ATO?
8. Do I own property, who’s on the title, and roughly what’s owing?
9. Is there anything in my credit history I’d rather not mention? (Mention it.)

The free call planner turns the most relevant of these into a printable card. Or if it’s easier, put the basics into the 60-second enquiry and the specialist will ask the rest when they ring.

Ready for the questions?

If you’ve read this far, you’re more prepared than most callers. Ring 03 4059 1829 and the specialist will take it from there, or send a 60-second enquiry and we’ll ring you. There’s no credit check to enquire, your details aren’t passed along a chain of lenders, and a real person does the matching. Please answer as accurately as you can, even with rough numbers, so we can point you to the right option the first time.