Comparing business loans by the paperwork they need

For many owners, the deciding factor isn’t the cost of a loan but whether they can produce what the lender asks for. Books that are a year behind, a new business with little history or a partner who’s overseas can rule some options out. This page compares what each loan type needs, so you can start with the ones your paperwork supports.

What does each loan type usually ask for?

Loan type	Core documents	Often also needed
Unsecured loan	ID, ABN, 6–12 months of bank statements	List of current debts
Line of credit	ID, ABN, bank statements	BAS for larger limits
Low doc loan	ID, ABN, bank statements	BAS or accountant’s letter
Invoice finance	Debtor ledger, customer list	Sample invoices and contracts
Equipment finance	Supplier quote, ID, ABN	Bank statements, insurance
Secured loan	ID, property details, owners’ consent	Financials for larger amounts
Commercial property loan	Financials, tax returns, contract of sale	Lease details, valuation
Tax debt loan	ATO statement, bank statements	Payment plan or notice details

Which paperwork situations suit which loans?

Your situation	Options to look at first
Books and tax returns up to date	Any, including the cheapest full-doc loans
Tax returns behind, BAS current	Low doc, unsecured, property-backed
New business, little history	Property-backed, equipment finance with a deposit
Mixed personal and business banking	Property-backed, or tidy up the account first
Lots of B2B invoices outstanding	Invoice finance
Buying a specific asset from a dealer	Equipment finance

Why do bank statements matter so much?

They show, month by month, what really comes in and goes out. Lenders look for:

• Regular deposits from customers.
• Existing loan repayments.
• Dishonoured payments and overdrawn days.
• Large or unusual transfers.
• Whether business and personal spending are separate.

A dedicated business account, used only for the business, is one of the simplest things you can do to make future applications easier.

How can you get your paperwork ready?

1. Download or prepare to share 12 months of business bank statements.
2. Check every director’s ID is current.
3. Have your ABN and ACN handy.
4. Print or save your last few BAS.
5. List every business debt, its lender and repayment.
6. For an asset, get a written quote with the serial number or VIN.
7. For property, have the address, estimated value and current loan balance.
8. Ask your accountant if a letter confirming income is possible.

Our eligibility checklist guide goes into more detail.

Illustrative example. A Cairns tour operator’s tax returns are two years behind after the business’s busiest stretch ever. Her BAS is current and her account shows healthy, regular deposits. Full-doc lenders can’t help yet. A low doc unsecured loan based on her statements and BAS funds a second minibus, and her accountant uses the push to catch up on the returns, which will open cheaper options next time.

Does more paperwork mean a better deal?

Often, yes. The more a lender can see, the more confident it can be, and that tends to show up in pricing and the amount offered. If you have time before you need the money, getting lodgements current can be worth more than shopping around.

What do lenders look for when they read bank statements?

Knowing what a credit assessor checks helps you spot issues before they do:

They look at	What helps	What raises questions
Deposits	Regular, from identifiable customers	Large cash deposits, transfers from personal accounts
Balances	Steady, rarely overdrawn	Frequent overdrawn days
Repayments	Existing loans clearly visible and paid	Several short-term lenders debiting
Dishonours	None	Failed debits in recent months
Spending	Business costs	Gambling, large personal transfers
Tax	Regular BAS and PAYG payments	Nothing paid to the ATO for months

If something unusual appears, such as a large one-off deposit from a property sale or a period when the account was overdrawn during a known event, explain it upfront in a sentence or two. Assessors are far more comfortable with an explained anomaly than an unexplained one.

How long should you keep records?

The ATO generally requires business records to be kept for five years. Keeping bank statements, BAS, invoices and loan documents organised for at least that long means they’re ready whenever a lender, accountant or the ATO asks. A shared folder with a sub-folder for each year is enough for most small businesses.

Start with the paperwork you have

You don’t need perfect books to find out what’s possible. Asking doesn’t touch your credit file; a check only comes up if you choose to go ahead. We don’t share your enquiry around a crowd of lenders. A real person looks at what you have, tells you which loan types fit it, and what extra documents would open better options.

Please be accurate on the form about where your lodgements are up to. Start your enquiry, or use the comparison tool with paperwork as your priority and then check your options.