Essential Simple Tips for Securing Your Ideal Loan Successfully

Simple Tips On Getting Your Loan

What are some simple tips for getting a loan?

The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

So, you want to get a loan? Here are some simple tips that might help you make more informed decisions about the type of loan you buy, and from whom.

As you would probably be aware, a loan varies according to:

The amount borrowed;
The interest rate;
The type of rate (fixed or variable);
The term (length in years) of the loan;
Deposit (downpayment);
Associated fees (broker, origination, prepayment etc.);
Insurance required by the lender.

When you get a loan, you are buying money for more than it cost the lender. Simple.

If you are comparing loan offers, it is a mistake to consider the interest rate alone. Depending on the type of loan, there may also be arrangement fees and *prepayment penalty* clauses to consider. Therefore, you should be sure to take into account the total cost of your loan when comparing options - and definitely before committing.

Keep a copy of every cheque you write for your loan. If you call your lender about your loan, make sure you get the full name of the person with whom you speak. Make a note of it. You may be dealing with a large bureaucracy, and will need to refer to this conversation later.

Do a budget. Make sure you use realistic figures. Keep all of your receipts, or keep a record, for all of the money that you spend for a month. Use that to help you compile the first draft.

Be prepared to review and update it regularly. A co-ordinated budget allows you to get the most loan for your money without beggaring yourself, while getting rid of wasteful spending.

Where possible you should avoid loans that contain combinations of the following attributes:

Short-term;
High up-front fees;
High rates;
Balloon payments;
Excessively high late fees;
Prepayment penalties.

These loans can potentially swallow up any equity you may have, and ruin your financial position.

Beware of prepayment penalties. Many 'no fee' credit lines have a pre-payment penalty. There is no need to agree get a loan which contains any significant prepayment penalty, if you have good credit. One of the smartest things someone can do with a loan is to prepay it.

All you need to do is contact your lender and ask for its prepayment procedure. Then, every so often, check the loan balance the lender sends you, to make sure the additional payments have been accounted properly.

Be wary of promises of getting a loan quickly. Many borrowers are told that their loans will close within a particular time. They don't make payments on existing debts, in anticipation of the new loan.

After several delays, they can become delinquent, with no money from the new loan. Some mortgage companies then order new credit reports, and charge the borrowers higher fees, and a higher rate, because of the delinquent loans, which resulted from delays caused by the loan company!

Submit a neat application form; it shows you're business-like and efficient. It will be read and assessed by a human being; appearances count.

Only pay up-front fees to well-known or highly recommended institutions. While most institutions are reputable, it is always best to be cautious.

Don't sign documents without reading them. As soon as possible, before you close the deal, review the documents you'll be signing, and make sure you understand them, so you won't have to sign them in a hurry.

Keep your credit line as small as possible. You could be turned down for other loans, even when your credit line has a zero balance, since a large credit-line indicates a large potential outgoings.

If your spending is out of control, don't get a home equity credit line to pay off your credit cards. Don't put your home at risk by spending large amounts on your credit cards, after paying them off with your credit line.

Pay off small debts before the due date. Cancel credit cards you are not using. Loan officers tend to count the total line of credit - even if you owe nothing - as a liability. They will only cloud the picture. Close credit lines that you have no intention of using in the near future. Also look closely at the interest rates and fees, when deciding which cards to keep.

Choose a lender with a clean record with the industry watchdogs in your country. The mortgage industry receives a great number of complaints against it. In Australia, mortgage and finance brokers of any kind must be licensed with A.S.I.C, and all licensing information for brokers can be found on the A.S.I.C. website.

Shop for rates when the market is calm. Rates change from day to day, so compare lenders. The quotes you get should all be from the same time period.

Check your payments are correct - Do the mathematics. There's a one in ten chance you could be paying more than you should.

If you find yourself in a dispute with a lender about a payment or another issue, don't send correspondence to the same address you send your payment. You need to deal with the decision-makers, not the account clerks.

Published: Sunday, 1st Aug 2021
Author: Paige Estritori

Rate this article

0 Comments

No comments yet. Be the first to share your thoughts.

Business Loans Articles

What Documents Do Lenders Commonly Request for a Business Loan Application?

Applying for a business loan generally involves providing financial and business information so the lender can assess the application against its lending criteria. The documents requested will vary depending on the lender, the loan product and the nature of the business. - read more

Personal Guarantees and Security for Business Loans in Australia

Personal guarantees, collateral and security interests can affect both a business and the people behind it. This guide explains key risk concepts Australian SME owners, sole traders and company directors should understand before signing a business loan agreement. - read more

Secured vs Unsecured Business Loans in Australia: Key Differences

Secured and unsecured business loans work differently, especially when it comes to collateral, interest rates, borrowing limits, documentation and repayment terms. Understanding these differences can help Australian business owners compare funding options more clearly before making an enquiry or application. - read more

How Business Loan Interest Rates Work in Australia

Business loan interest rates in Australia vary because lenders price each loan according to the product, market conditions, business risk, security, loan term and the applicant's financial position. Understanding these factors can help SMEs compare loan offers more confidently. - read more

Alternative Funding Options for Your Australian Business

When it comes to starting or expanding a business in Australia, securing funding is often a top priority. However, traditional funding options, such as bank loans or government grants, can be difficult to obtain for small businesses. - read more

Common Mistakes to Avoid During the Business Loan Application Process

Many Australian business owners find securing a business loan to be a daunting task, primarily because of the detailed documentation required and the common pitfalls that can occur at various stages of the application. - read more

How to Improve Your Startup Loan Application in Australia

Securing finance can be an important step for a startup, but new businesses often face closer lender scrutiny because they may have limited trading history. This guide explains how startup loan options work in Australia and how founders can prepare a clearer, more credible application without assuming approval is guaranteed. - read more

Finance News

Payment Timing Keeps Pressure on SME Working Capital

19 Aug 2026: Paige Estritori

Fresh small business indicators are again pointing to a familiar challenge for Australian SMEs: trading activity may continue, but the timing of cash receipts is still creating pressure. Recent industry commentary has highlighted uneven payment behaviour, cautious customer spending and a more deliberate approach to investment among smaller firms. For owners and finance managers, that combination can make working capital planning just as important as sales growth. - read more

Payment Delays Put Working Capital Back on the SME Agenda

12 Aug 2026: Paige Estritori

Late invoice payments are again emerging as a practical funding issue for Australian small and medium-sized businesses, with fresh industry commentary pointing to continued pressure across trade payments, cash reserves and day-to-day operating liquidity. For business owners, the message is clear: revenue on paper is not the same as cash in the bank. - read more

Rising Business Failure Risk Puts Cash Flow Back in the Lending Spotlight

04 Aug 2026: Paige Estritori

Fresh business risk signals are reinforcing a clear message for Australian SMEs: access to credit is still available, but lenders are likely to keep asking harder questions about cash flow, repayment capacity and the resilience of each borrowerâ€™s operating model. The latest commentary around business failures, trade payment pressure and sector-specific insolvency risk points to a market where credit decisions are becoming increasingly evidence-led. - read more

Business Borrowing Momentum Is Becoming More Selective

28 Jul 2026: Paige Estritori

Australia's business lending market appears to be entering a more selective phase, with the latest banking signals pointing to a widening gap between larger companies still seeking capital and smaller firms taking a more cautious approach. While credit is not disappearing, lenders are increasingly focused on serviceability, cash flow consistency and the purpose behind each new facility. - read more

Small Firms Tap the Brakes on Borrowing in June

21 Jul 2026: Paige Estritori

Australian small businesses appear to be moving into a more defensive phase, with new Equifax data for June 2026 pointing to a sharp divide between larger companies still borrowing for expansion and SMEs conserving cash. The latest Business Market Pulse suggests overall business loan demand is still growing, but at a slower pace than the stronger credit activity recorded late last year. - read more

Small Business Tax Debt Crackdown Sharpens Cash Flow Focus

07 Jul 2026: Paige Estritori

Australian small businesses may soon face a more disciplined tax debt collection environment, after the Australian National Audit Office found the ATO needs clearer targets for reducing collectable small business debt. The issue is substantial: small business collectable tax debt stood at $35.9 billion in 2024-25, representing about two-thirds of total collectable tax debt. - read more

Record Commercial Card Debt Points to Fresh SME Cashflow Pressure

30 Jun 2026: Paige Estritori

Australian small businesses are showing another sign of financial strain, with commercial credit card debt reaching a record level at the end of June. New analysis from Credit 2024 and Primara Research indicates total commercial card debt has climbed to about $2.26 billion, with almost a quarter of that sitting in high-interest balances rather than being cleared quickly. - read more

Click for more Finance News

Need Help Finding a Loan?

Start here

Let us help you explore your business finance options.

All finance quotes are provided free (via our secure server) and without obligation.
We respect your privacy.

Knowledgebase

Loan Amortisation Schedule:
This is the formal name for the repayment schedule that shows each of your mortgage payments with a breakdown of how much is applied to principal and how much is applied to interest.