Will you lend to me if my tax returns aren't done?

Can I really borrow without up-to-date tax returns?

Often, yes. This is one of the most common reasons businesses end up with a non-bank lender.

Banks tend to want the last two years of tax returns and financial statements. If yours aren’t lodged — because your bookkeeper left, your accountant is behind, you were flat out growing, or life got in the way — the bank’s checklist says no.

But tax returns are a look in the rear-view mirror. They tell a lender what the business did last financial year, sometimes eighteen months ago. Many non-bank lenders prefer to look at what the business is doing now.

What do lenders look at instead?

Evidence	Why it works	Best for
Business bank statements	Shows real money in and out, recently	Unsecured and cash-flow loans
Lodged BAS	Official turnover reported to the ATO	Both secured and unsecured
Management accounts (from Xero, MYOB, QuickBooks etc.)	Current profit-and-loss and balance sheet	Both
Accountant’s letter	Confirms income and explains the lag	Larger amounts
Property value and equity	Security the loan relies on	Property-secured loans

Unsecured, cash-flow and line-of-credit options — typically $5,000 to $500,000 — are sized on turnover and bank statements. For a steady trading business, missing returns can matter surprisingly little here.

Property-secured business loans — $20,000 to $5,000,000 through first mortgages, second mortgages or caveats over residential or commercial property — are assessed on equity and your repayment plan. Returns are secondary.

Returns behind but the business is trading well? Tell us about it in 60 seconds — no credit check to enquire.

Why do overdue returns still matter a bit?

Because they raise a fair question: is there an ATO problem hiding behind this?

Overdue returns can mean penalties for failing to lodge, or tax that’s owed but not yet assessed. A lender wants to know whether a big tax bill is about to land on the business. The ATO encourages anyone who can’t lodge on time to make contact before the due date — being in touch with the ATO, and having a registered tax agent managing your lodgements, both help.

The more you can show this is a paperwork delay rather than a money problem, the better.

How do I make my case stronger?

1. Lodge your BAS, even if the returns are behind. Quarterly BAS are official turnover evidence.
2. Get management accounts up to date. A current profit-and-loss from your software speaks volumes.
3. Get a catch-up plan from your accountant. “2024 return lodged by November, 2025 by February” is exactly what a lender wants to see.
4. Keep business banking separate. Clean statements are your main evidence now.
5. Estimate any tax owing. If catching up will create a bill, plan for it rather than being surprised.

An illustrative example

Invented for illustration; no real business.

A family-run civil earthworks business has grown fast for two years. Their accountant retired and the new one inherited a mess, so the last two tax returns aren’t lodged. Their BAS are all up to date. They need $220,000 for a second excavator.

• The bank declines on the missing returns.
• A non-bank lender reviews twelve months of statements and eight lodged BAS showing strong, consistent turnover.
• Because the amount is large, the loan is secured over the owners’ home with a second mortgage. The accountant provides a letter setting out the lodgement plan.
• The owners plan to refinance to a bank once both returns are lodged.

What if my BAS are behind too?

That’s a tougher spot, because BAS are often the main official evidence when returns are missing. Read our page on BAS lodgements being behind for what to fix first. And if the returns, once lodged, will show a loss, our loss year page explains how lenders read that.

How far behind is too far?

There’s no official line, but lenders tend to think about it in bands:

Where you’re at	How it usually reads
Latest return due soon or just overdue	Normal — many businesses lodge through a tax agent later in the year
One year behind, BAS current	Workable with statements and BAS; show the catch-up plan
Two years behind, BAS current	More questions; accountant’s letter strongly recommended
Returns and BAS behind	Hardest — risk of hidden ATO debt; fix lodgements first

If you use a registered tax agent, your returns may have a later due date than if you lodge yourself, so being “behind” isn’t always what it seems. Your agent can confirm your actual position.

What moves you up the table fastest is getting BAS current, because that restores the official turnover record. Then work through the returns, oldest first. If lodging is likely to show a loss year, prepare the explanation at the same time. And if a bank has already said no because of missing returns, see declined by the bank for how other lenders approach the same file.

Let’s look at what you do have

Paperwork running behind the business is incredibly common, and it doesn’t mean your business isn’t worth lending to. We’ll look at the evidence you’ve got right now.

You can find out where you stand without a credit check, and we won’t push your details out to a pile of lenders — one real person works on it. When you fill in the form, please be accurate about which returns and BAS are lodged, your recent turnover and any property available. Getting those details right is how we match you properly the first time. Start your enquiry.