Questions to ask a business lender on the phone (before anything's signed)

Why you should ask as many questions as you answer

A first call with a lender can easily become one-way: they ask, you answer, you hang up with a vague “we’ll be in touch”. That’s a wasted opportunity. The first call is the cheapest point in the whole process to find out whether an option suits you, before you’ve spent hours gathering paperwork or agreed to a valuation.

A good specialist welcomes your questions. If someone seems annoyed that you’re asking about costs or timing, that tells you something.

Questions about the next step

• “What happens next, and who does it?” You want a clear picture: do you send documents, does someone call you, is there a valuation?
• “What exactly do you need from me?” Ask for the specific list for your option, not a generic checklist. Some loans need two years of tax returns; others need three months of bank statements and a property address.
• “How long does each stage usually take?” Assessment, valuation (for secured loans), approval, loan documents, settlement.
• “What could slow this down?” The honest answer might be a missing BAS, a co-owner who’s overseas, or a valuer’s diary. Better to know now.

Questions about cost

The rate is only one part of what a business loan costs. On the phone, ask:

Ask about	Why it matters
Establishment or application fees	Often charged upfront or deducted from the loan
Legal and settlement costs	Common with property-secured loans
Valuation fees	Needed for most loans secured on property
Ongoing fees	Monthly or annual account fees add up
Early repayment or exit costs	Important if you expect to repay early from a sale or refinance
How the cost is paid	Monthly, capitalised into the loan, or at the end

Don’t expect a firm rate on the first call. Business loans are priced on your situation, so a specialist who quotes a number before understanding the security, the business and the term is guessing. Ask instead: “What will drive the price, and when will I see all the costs in writing?”

Questions about security and guarantees

• “Does this need property security? If so, which property and what kind of mortgage?” First mortgage, second mortgage or caveat each work differently.
• “Will I need to sign a personal guarantee?” Common for company borrowers. Understand what it means for you personally.
• “Does anyone else need to sign?” Co-owners of a property, other directors, a spouse.
• “What happens if I want to sell the property during the loan?”

A question about the first call itself

It’s worth asking one more thing early on: “Is there anything about my situation that would make you the wrong people to help?” A straightforward specialist will tell you if your need sits outside what they arrange, such as a personal loan rather than a business one, and save you time. Our page on what a specialist asks shows what we’ll want to know in return, and the first-minute script helps you open the call.

Questions about the “what ifs”

Life doesn’t always follow the plan. Ask:

• “If the money I’m expecting comes in late, what are my options?”
• “Can I repay early, and what would it cost?”
• “If I need to extend, how does that work?”
• “If this gets declined, will you tell me why?”

These aren’t pessimistic questions. They’re what separates a loan that fits from one that pinches later. If you have been declined elsewhere, our guide on asking your bank why it said no covers that conversation.

Questions about who you’re dealing with

You’re entitled to know who you’re talking to and who would actually provide the money. Reasonable questions:

• “Who is the lender for this option?”
• “Who do I contact if something goes wrong?”
• “Will my details be shared with anyone else?”

On that last one, our answer is simple: your details stay with one team. We don’t spread enquiries across a list of lenders or sell them on. It’s also fair to ask whether a lender belongs to the Australian Financial Complaints Authority scheme. AFCA helps small businesses resolve complaints with member financial firms and is free to use, though it suggests raising the problem with the firm first.

A short list to keep beside the phone

1. What’s the next step and who does it?
2. What do you need from me, specifically?
3. How long is each stage likely to take?
4. What could delay or stop it?
5. What are all the costs, and how are they paid?
6. What security or guarantees are needed, and from whom?
7. Can I repay early, and at what cost?
8. Who is the lender, and who do I contact if there’s a problem?

Our call planner adds the most relevant of these to your call-prep card automatically.

How to tell if the answers are good ones

Asking is half of it. The other half is noticing how the questions are answered. Signs you’re dealing with someone straightforward:

• Specific answers. “For this option we’d need three months of statements and a rates notice” rather than “just send everything”.
• Honesty about obstacles. A specialist who says “the unlodged BAS will be a problem for some lenders” is doing you a favour.
• No pressure to decide on the call. You should always be able to take time.
• Costs in writing before you commit. Every fee should appear in the offer documents.
• No upfront payments to “secure” approval. Be wary of any request to pay a fee before you’ve received and accepted a written offer.

If an answer doesn’t make sense, ask again, or ask for it in writing. And if a lender has already declined you, it’s reasonable to ask why. Our guide on asking your bank why it declined explains what banks commit to under their code of practice. You can also start an enquiry here and put your questions to us directly.

Ask us anything

Put these questions to us. Ring 03 4059 1829, or if now’s not a good time, leave a quick enquiry and a specialist will call you. Enquiring doesn’t involve a credit check, we don’t pass you around a pack of lenders, and you’ll be talking to a person who knows business lending. Give us accurate details and we’ll give you straight answers back.