5 Tips for getting a business loan

Need finance to cover cash flow gaps, grow your business, or take on a new opportunity? Whether you're expanding, launching a new venture, or simply need working capital, a business loan can give you the ability to move forward.

Getting a loan approved is about presenting a compelling case to a lender. One that shows you understand your business, your numbers, and your plan for success. Here are five practical tips to help you improve your chances of getting a business loan.

1. Build a strong business plan

Before you approach any lender, you’ll need a business plan that clearly outlines what your business does and where it’s heading. Lenders want to understand what you’re selling, who your target market is, how you’re reaching them, and how you’re positioned against competitors.

Your business plan should include a marketing strategy, team overview, pricing structure, and key goals for the next 12 - 24 months. Most importantly, it needs a clear explanation of why you need the funds and how they will be used, for example, to buy equipment, expand operations, or support a new contract.

Don’t forget your financials. Sales projections, expense breakdowns, and cash flow forecasts help demonstrate that you’ve considered how your business will sustain itself – and repay the loan. A solid plan shows lenders that you’ve done the work and that you’re focused on long-term sustainability.

2. Know your cash flow inside and out

Cash flow is king when it comes to business lending. If you’re already trading, lenders will want to see evidence of consistent revenue and responsible financial management. That means having your bank statements, BAS returns, and past tax records ready.

If you’re launching a new business, you’ll need to show robust financial projections and clearly explain the assumptions behind them. For example, if you forecast $100,000 in sales within six months, be ready to explain how you’ll generate those leads, how many customers you’ll convert, and what your margins will be.

Lenders want to know that you understand your numbers and that you’ve thought through the practical side of repaying the loan. The stronger your cash flow or projections, the more confident a lender will be in offering funding.

3. Keep your credit profile in good shape

Your personal and business credit history can have a major influence on your ability to secure funding – and the interest rate you’ll pay.

Lenders will review your credit score, existing debts, and past repayment behaviour. If you’ve had late payments, defaults, or court actions, it may raise red flags. On the other hand, consistently meeting your obligations shows financial discipline.

If you’re preparing to apply for a loan, avoid making multiple applications in a short period, and try to pay off or reduce any unnecessary debts. Even something as simple as ensuring your bills are paid on time can make a positive difference to your profile.

4. Work with a finance broker

Business lending is always changing, and no two lenders are the same. Working with a broker can save you hours of research and significantly improve your chances of approval.

A good finance broker will assess your business profile and match you with lenders who suit your needs. They’ll help you prepare your documentation, manage the application process, and negotiate terms on your behalf.

Importantly, they’ll also help you understand the pros and cons of different loan structures –fixed or variable interest, secured or unsecured – and how those options align with your business goals.

5. Be organised and transparent

Before you apply, gather all your supporting documents in one place. This might include financial statements, tax returns, BAS summaries, cash flow forecasts, your business plan, proof of identity, and any legal or structural documents for your company.

The more prepared you are, the smoother the process will be. Lenders often assess applications based not just on what you submit, but how you submit it. A disorganised or incomplete application can delay approvals or lead to a decline.

Be transparent about your financial position, including any past challenges. If your business has experienced a tough year or has a