How to apply for a business loan

Updated On November 7th, 2023By Dynamoney

When considering how to apply for a business loan, it can at times be an overwhelming and complicated process. Lenders will require specific information about your business and you as an individual. Ensuring you have the right documentation ready to go from the start will assist your chosen lender to find the best business finance to suit your individual needs and ensure a quicker road to business loan approval. To learn more about the documentation required when applying for a business loan look, no further.

Business loan requirements and documentation

When applying for a business loan, your chosen lender will need to assess the financial performance of your business to determine your borrowing capacity and your ability to repay the loan. Typically, most lenders will require the following information and documentation when applying for business finance.

• 6-12months business bank statements
• Clear understanding of what the funds will be used for
• asset & liability statement
• Personal identification documents

Business Bank Statements

Business bank statements provide an insight into your business income and expenses, source and frequency of deposits and how well you are managing your general expenses Lenders require this information to ascertain your ability to meet business loan repayments. For larger loans (>$300k) lenders may also require up to date accountant prepared financials to further determine your eligibility.

Most Lenders utilise technology that enable you to easily upload your business bank statements to expedite the assessment process.

Loan Reason

If you are applying for a business loan its important to tell the lender how you will be utlising the funds and what impact it will have on your business noting the funds must solely be used for business purposes. Some common purposes include:

• Consolidate or refinance existing debt
• Purchase inventory
• Expand product and services
• Hire new talent and pay wages
• Pay for repairs or renovations for your business
• Better manage the working capital cycle of your business
• Large and unexpected expenses

Directors Financial Position

Before receiving business loan approval, lenders will want to know your individual financial position. This is of particular importance if you are the director of the business/company the loan application is for. You will likely be asked for the following documentation:

• Details of your assets and liabilities

When applying for business finance you will need to provide 100 points of identification. This usually can be in the form of your driver’s license, passport, birth certificate, Medicare card etc. Some lenders will also ask for other information concerning business registration and any trust or partnership agreements.

What are the eligibility requirements when applying for a business loan through Dynamoney?

At Dynamoney we require the following criteria to be met when applying for a business loan:

• Your business must make at least $35,000 in monthly sales
• You must be a property owner
• Your business must have been trading for at least 2 years
• You must be GST registered

How to apply for a business loan with Dynamoney

Step 1: Check your eligibility

Before applying for business finance check our eligibility requirements.

Step 2: Fill out an application form

Fill out our online business loan application form. You will be asked to provide basic details such as your name, address, contact details, email, business name and ABN and the number of years your business has been trading for, as well as your credit score (if known).

Step 3: Receive instant approval or be asked to provide more information

Once we have received your application it will be reviewed by one of our lending specialists from which you will either receive instant approval or be asked to provide more information.

Step 4: Receive your funds

Once your business loan application is approved our lending team will organise the release of funds, once all documentation has been signed.

How to speed up your business loan approval

Be quick to respond to any requests from your lender

If you are asked to answer questions or provide additional documentation, the quicker you respond the quicker you will obtain business loan approval.

Ensure all your documentation is ready to go up front

Ensuring you have all the necessary business and personal documentation required to apply for business finance upfront before you apply will save time and expedite the process.

Determine your eligibility before you apply

Before applying for a business loan, check the lender’s eligibility criteria as this will avoid unnecessary disappointment and ensure you don’t waste your time.

At Dynamoney, we provide business loans to businesses of varying sizes and across all industries. For more information on how to apply for a business loan, contact our team today.