Income & paperwork

Will you lend to me if my numbers are messy?

Tax returns not done, a loss year, BAS behind, takings dropped or one customer paying most of the bills. Here's how each is weighed.

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Plenty of good businesses have paperwork that lags behind reality, a year that looks worse on paper than it was, or income that's lumpy or concentrated. Lenders who look past the headline figures ask why, and what current trading shows.

Bank statements and lodged BAS often matter more than last year's tax return for unsecured options, while property-secured loans rely less on income evidence. Find your situation below for how each one is weighed.

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…my tax returns aren't done? Often, yes

Often, yes. Many non-bank lenders don't rely on tax returns.

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…my business made a loss last year? Often, yes

Often, yes. A loss on paper doesn't always mean the business can't repay.

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…my BAS lodgements are behind? Possible — lodge first

Possibly, but lodge first. Overdue BAS worry lenders more than most paperwork gaps, because BAS are official turnover evidence and unlodged ones can hide GST and PAYG debt.

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…my revenue has dropped recently? Case by case

Case by case. A drop in revenue makes lenders look harder, because unsecured limits are sized on turnover and a falling trend shrinks what the business can support.

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…most of my customers pay cash? Depends on what's banked

It depends on what's banked and declared.

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…one customer makes up most of my income? Yes, with context

Yes, with context. Relying on one major customer is common for subcontractors, suppliers and service businesses, and lenders see it all the time.

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…I already have other business loans? Often, yes

Often, yes. Having existing business debt is normal, and lenders simply factor your current repayments into what the business can afford.

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…my turnover is quite small? Smaller amounts, yes

For smaller amounts, often yes. Unsecured and cash-flow lenders size limits on turnover, so a smaller business can usually access a smaller facility, provided deposits are steady.

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