How to explain your loan request clearly

Lenders read hundreds of applications. The ones that move fastest are not the ones with the most impressive numbers; they are the ones that tell a clear, consistent story. You can do that in a few lines.

The four questions every lender asks

1. How much do you need? A specific figure, not “as much as possible”.
2. What is it for? The purpose, in a sentence.
3. How will it be repaid? The source of repayment and the timing.
4. What should we know? Anything unusual in your history or circumstances.

Answer those clearly and the rest of the application becomes a matter of confirming what you have said.

Getting the amount right

Work it out from the purpose, not from what you think you can get. If it is stock, use the supplier quote. If it is a cash gap, use your cash flow forecast. If it is a contract ramp-up, use the costs before the first payment. Then add a sensible buffer. Asking for far more than the purpose justifies raises questions; asking for too little means coming back.

Describing the purpose

Be specific. Compare:

• Weak: “Working capital.”
• Strong: “To pay for $48,000 of stock for the Christmas season, which sold through in eight weeks last year.”

The strong version tells the lender what the money does and why it will come back.

Want a person to look at your numbers? The 60-second enquiry runs no credit check, and the person who reads it is the person who calls you back.

Explaining repayment

Repayment source	What to show
Trading income	Recent bank statements with steady deposits
A specific contract	The contract and payment terms
A property sale	The contract of sale or listing
A refinance	Evidence the refinance is under way
Seasonal sales	Last year’s statements for the same period

Dealing with the awkward bits

Every business has something: a default from a bad year, an ATO debt, a dip in revenue, a recent change of structure. Put it in the enquiry, briefly and factually. “A supplier default from 2024, caused by a disputed invoice, paid in full in 2025” is easy to assess. Discovering it halfway through the process is not. Our guide to fixing bad credit before you apply has more on presenting credit issues.

Keep the numbers consistent

The turnover on your form, the deposits in your statements and the sales on your BAS should line up. If they do not, explain why, for example cash takings banked into another account or a large one-off payment.

Example of a clear request (illustrative)

“We need $120,000 to buy materials and cover wages for a commercial fit-out contract worth $410,000, paid in three progress claims on 30-day terms. Our statements show average deposits of $95,000 a month. We have no other business debt apart from a ute on equipment finance. We would repay from the second and third progress claims.”

That is four sentences, and it answers almost everything a lender needs to start.

Not sure what to ask for?

Try the Funding Matcher to see which type of funding fits your purpose before you write anything.

More on this topic

• Documents you need for a business loan application: Which documents lenders ask for in a business loan application, from bank statements and BAS to property details, and how to get them ready in advance.
• Reading your bank statements like a lender: What lenders look for in business bank statements: deposits, balances, dishonours, other lenders and owner transfers, and how to present your statements well.
• Fixing bad credit before you apply: Practical steps to improve a damaged credit file before applying for business funding: check your report, settle defaults, explain issues and use security.

Key terms, in plain English

• Working capital: the cash a business needs to keep running while money is tied up in stock and unpaid invoices.
• BAS: the business activity statement used to report and pay GST, PAYG withholding and other amounts to the ATO.
• Credit file: the record held by credit reporting bodies of credit applications, accounts and any defaults.

Five things to confirm with any lender

• What is the total amount I will repay, including every fee?
• Are there fees for repaying early, and how are they worked out?
• How are repayments collected, and how often?
• What security or guarantees are required?
• What happens if a repayment is missed?

Where your accountant fits in

Your accountant knows your numbers better than anyone, so involve them early. They can confirm figures for the enquiry, flag tax effects of different structures, and tell you whether the timing of a loan suits your BAS and tax cycle. A lender’s job is to assess whether funding fits; your accountant’s job is to make sure the business is set up to carry it well. The two work best together.

Key takeaways

• State the amount, purpose, repayment and context plainly
• Back each point with evidence
• Disclose problems early rather than late
• Ask for what you need, not the maximum

What to expect from us

You send a 60-second enquiry with the amount, the purpose and a few facts about the business. A real person reads it, usually the same business day, and calls to fill in the gaps. For unsecured options they will ask for recent business bank statements, which can normally be shared through a secure read-only link. For property-secured options they will ask about the property and what is owed on it, with no valuation needed. You then see the offer in plain terms, including the total cost, and decide whether to go ahead. A credit check happens only at that point. If something about your situation is unusual, say so early; it is far easier to plan around a known issue than a surprise.

A quick test before you borrow

Not every cash problem is a funding problem. Sometimes the better fix is a conversation with a supplier, a payment plan with the ATO, chasing an overdue invoice or adjusting prices. Funding earns its place when it solves a timing gap or unlocks an opportunity worth more than its cost. We will tell you honestly which situation you are in.

Before you send the enquiry

A short checklist before you send the enquiry. None of it takes long, and together it heads off the most common causes of delay:

• Know the amount you need and what it will pay for.
• Check your recent bank statements so nothing in them surprises you.
• Note any loans, leases or payment plans the business is carrying.
• If you own property, know who is on the title and what is owed.
• Make sure every director or co-owner knows you are applying.

A quick word on the enquiry form

Every question on the form is there for a reason: it changes which funding fits. Describe the business as it stands today rather than the version you expect in six months. Mention any default, tax debt or recent decline in the notes. We look at those situations all the time, and knowing early lets us head straight for options that can actually work.

Get a straight answer

When you are ready, tell us what you need. Enquiring costs nothing and there is no credit check; a check only happens if you choose to go ahead with an offer. A real person reads every enquiry and calls you back, and we never auction your details to other lenders. One favour: fill in the form carefully. Honest figures for turnover, time trading and credit history let us match you properly the first time.