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The things to have ready for your commercial finance application

commercial finance application

Applying for a commercial finance application can be an exciting time for your business as it means growth! It could be for a new or used vehicle, a truck, a digger, manufacturing software, or cashflow.

But it can also be a little bit stressful for some people, as it’s often time critical.

 

When applying for finance in your business, if you can have as many of the below items ready to go – it can make the process a lot smoother and, in many cases, quicker.

Basic business information

All commercial lenders will require some basic information about your business.  This would include things such as:

  • Business trading name
  • ABN (Australian Business Number) or ACN (Australian Company Number)
  • Entity structure – i.e. Sole Trader, Partnership, Company, Trust

Identification documents

We’ll need to verify your identity as part of the commercial finance process.  The documents needed will vary depending on your business structure, but all lenders will at the very least will require photographic identification such as your Australian driver’s license, or your passport.

australian passport

Financials

When approving finance applications, our lenders like to know some financial information about your business as this helps them to analyse your ability to repay the loan.  This may include:

  • Monthly / annual turnover – What is your current (or estimated) monthly/annual revenue? If you don’t have historical data to help, you can provide cashflow projections.
  • Overheads – What are your business overheads? Business overheads are also referred to as operating expenses, and refer to expenses that are associated with running a business that can’t be linked to creating or producing a product or service.  Common examples include rent, administrative costs like insurances, employee wages, and utilities.
  • Debt – Do you or the business have any other debts currently owing?

Every lender has different requirements, but most of the information you will provide will be verbal, and usually things you will know off the top of your head.

Your accountant can often assist with compiling any extra information you may need beyond this.

 

Information about the asset

And of course, we’ll need to get some information about the asset that you’re trying to purchase.

As an example, if you’re purchasing a vehicle we will need to know the make, model, year, what it will be used for, if there are any modifications to it, and the price.

Or if you’re purchasing a piece of business equipment or software, we’ll need to know the brand, the type of software, whether it is ‘income producing’, and the amount you need finance for.

 

Do I have everything ready?

Don’t let the above list put you off getting in touch with us today as most of this is information you will likely know off the top of your head.

We prefer to talk to you as early as possible in the process when you’re considering commercial finance, and we can help to walk you through exactly what you’ll need to provide based on what you’re trying to purchase and where you’re at in your business.

And if you don’t have all of the required information, we can work with you to find a lender that will suit.

You can call today on (08) 7084 1278, or fill in our contact form.