Quick answer
When you call a lender, list every existing business debt with four details: who it's with, the rough balance, the regular repayment, and whether it's up to date. Include loans, credit cards, equipment finance, overdrafts, ATO arrangements and any daily or weekly repayment products. Lenders will see these in your bank statements, so listing them upfront lets the specialist judge what's affordable and whether refinancing makes sense.
Key points
- For each debt: lender, balance, repayment and status.
- Include small ones too: cards, equipment finance, overdrafts, ATO plans.
- Flag daily or weekly repayments; they weigh heavily on cash flow.
- If several debts are squeezing you, say so. Refinancing may be the real need.
Why the specialist asks what you already owe
Every new repayment has to fit alongside the ones you already make. So one of the questions on any lender call is: “What finance does the business already have?” It’s not a judgement. It’s arithmetic. business.gov.au notes that lenders assess existing debts as part of your overall capacity to repay, and they’ll see them in your statements anyway.
Listing them clearly on the phone does two things. It lets the specialist size a new facility realistically, and it sometimes reveals that the real need isn’t more money but a better structure for the debt you already have.
The four details for each debt
- Who it’s with. Bank, finance company, online lender, supplier, the ATO.
- Rough balance.
- The regular repayment, and how often: monthly, weekly, daily.
- Status. Up to date, behind, or on an arrangement.
A quick table on a notepad before you call is ideal:
| Debt | Balance | Repayment | Status |
|---|---|---|---|
| Bank business loan | $140k | $3,200 monthly | Up to date |
| Equipment finance (truck) | $55k | $1,450 monthly | Up to date |
| Business credit card | $18k | Minimum only | Up to date |
| Online lender | $40k | $420 daily | Two weeks behind |
| ATO payment plan | $32k | $2,000 monthly | Keeping up |
All figures illustrative.
Don’t forget these
The debts people most often leave out:
- Business credit cards and overdrafts, because they don’t feel like loans.
- Equipment and vehicle finance, because it’s tied to an asset.
- ATO payment plans, because they’re with the government, not a lender. Our page on owing the ATO covers how to describe these.
- Products repaid daily or weekly, such as some online and revenue-based facilities. These can take a large share of cash flow, and lenders reading statements will spot them straight away.
- Director loans or family loans into the business.
Scripts you can adapt
The tidy version:
“We’ve got a bank loan with about $140k left, $3,200 a month, and a truck on finance, about $55k, $1,450 a month. Both are up to date. I’m looking for another $80k for a second truck.”
Illustrative example only.
The under-pressure version:
“Honestly, the debts are the problem. There’s a bank loan, a truck on finance, a card, and an online loan taking $420 a day that I took when things were tight. I’m a couple of weeks behind on that one. I’d like to look at consolidating if it’s possible.”
Illustrative example only.
The second version is exactly what a specialist needs to hear. It shifts the conversation from “can we add a loan?” to “can we restructure so the business can breathe?”
When refinancing is the real answer
If repayments are squeezing cash flow, especially daily or weekly ones, consolidating several debts into one facility with a longer term can sometimes ease the pressure. Whether it actually helps depends on the total cost over time, any exit costs on the existing debts, and the security involved. Ask the specialist to compare the before and after clearly. Our list of questions to ask a lender includes the key ones on exit costs.
If a debt is behind right now
Say so, and say what you’ve done about it. If you haven’t yet contacted the lender you’re behind with, do that too. Early contact tends to give you more options, as our guide on calling your lender before a missed repayment explains. If things feel overwhelming, the Small Business Debt Helpline (1800 413 828) offers free, independent and confidential financial counselling for small business owners.
What lenders look for in your existing repayments
When a lender reads your bank statements, the repayments going out tell a story. It’s worth knowing what they tend to notice, so you can explain it first:
- How many facilities there are. A bank loan and one equipment finance agreement is ordinary. Five or six separate lenders, especially recent ones, can prompt questions about why.
- How often money goes out. Daily and weekly debits stand out because they take cash before the month’s income has settled.
- Whether repayments bounce. Dishonoured payments are one of the first things an assessor looks for.
- When debts were taken out. Several new facilities in the last few months can suggest cash flow has been under pressure.
- Whether ATO payments are regular. A payment plan being met reads very differently from sporadic payments.
None of these automatically rules anything out. They’re simply questions the specialist will want answered, and a sentence of context from you (for example, “we took the online loan during the flood closure, and it’s the one we want to replace”) helps them read the statements the way you’d want.
If you’re weighing up whether to consolidate or add, do the maths on total cost, not just the new repayment. Our page on working out how much to ask for helps with sizing, and describing your turnover covers the income side of the same picture.
Ready to lay it out?
Jot down your debts, then ring 03 4059 1829, or list them in the 60-second enquiry and we’ll call you. Enquiring won’t trigger a credit check, your details aren’t passed to a string of lenders, and a real person will look at the whole picture, not just the next loan. Please include every debt, even the small ones, so we can match an option that genuinely fits.
Frequently asked questions
Do I have to tell a lender about all my business debts?
Yes. They'll appear in your bank statements and credit checks anyway. Listing them upfront helps the specialist work out what's affordable and avoids surprises later.
Can I get another business loan if I already have one?
Often, yes, depending on what the existing repayments leave room for, how they're being managed and whether security is available. Sometimes consolidating makes more sense than adding a new loan.
What if one of my debts is behind?
Say so, and say what you're doing about it. A debt that's behind changes which options suit, and it's much better discussed than discovered.
Should I include my home loan?
Mention it if the home might be offered as security or if a director's guarantee is likely. The specialist will ask if they need it.
Can a new loan pay out my existing debts?
It can. Refinancing or consolidating business debts is a common purpose. Whether it helps depends on the total cost, the term and the repayments compared with what you have now.