Business Loans Australia :: Articles

18 Hot Tips For Intending Borrowers

What are the best tips for borrowers looking to make their loan process easier?

18 Hot Tips For Intending Borrowers

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.

If you're thinking of borrowing money to buy a car, boat, debt consolidation, home repairs, medical bills or anything else for that matter, here are some red hot tips to make the process much, much easier.

#1. Avoid unsecured loans if possible

Avoid using unsecured personal loans if you can put up some security for your borrowings. This will get you a lower interest rate. A home equity loan, or redraw of extra repayments, allowing you to borrow against the equity built up in your own home or an investment property, is the best option of all, and could get you finance at up to 5 percent less than a personal loan.

#2. Be honest in loan applications

Be honest about why you want the loan. Your bank may be able to offer you a loan option that better suits your circumstances. There are an increasing variety of different types of personal credit these days; car loans, commercial loans, leases, home equity loans, are just some of the examples.

#3. Can't get a standard loan? There are alternatives

If the banks, building societies and credit unions won't lend to you because you're self employed, newly arrived in the country or have a poor credit history, consider the booming non-conforming and "low doc" loan market. A number of non-bank lenders offer loans which especially cater for this type of borrower. The interest rates on non-conforming loans are generally higher but come down after a few years of on-time repayments.

#4. Check your statements for errors

There are claims that more than 50 percent of loan statements contain calculation errors. Simple mistakes, like the entry of the incorrect balance or the application of the wrong interest rate at the wrong time can be costly and mostly favour the lender. We all make mistakes, even bank computers make them and that's why borrowers should keep a close eye on loan statements. Various software for your home PC is available that can run a check on your statements.

#5. Consider smaller lenders too

When shopping around for a car loan, consider community banks, credit unions and other smaller financial institutions which might be more approachable, and offer lower interest too.

#6. Do you have to take out a personal loan at all?

Think twice before borrowing money without security. You may have a better option already available; home equity extension to your home loan, a new loan that uses your property as security, a credit card, or even a rich relative!

#7. Do you qualify for a 'relationship discount'?

Relationship discounts are available from banks and credit unions for those borrowers who consolidate a range of banking business with the one institution. Home and personal loan interest rate discounts, term deposit bonuses, savings account fee waivers and credit card annual fee waivers are commonly offered.

#8. Don't just take the dealer finance

Don’t accept loan or lease finance offered by a car dealer before comparing the offer with finance options offered by your bank or other credit providers. Dealer finance might be less hassle but you could well end up with an expensive loan and more restrictive terms and conditions. The same goes when buying furniture or any consumer goods where finance terms are offered.

#9. Don't make multiple applications

Don’t fill out applications at several financial institutions and have all of them checking into your credit history. This can make you look desperate and lower your credit score.

#10. Don't rely solely on comparison rates

All lenders must now include "comparison rates" in advertisements for their home loans and personal loans to help consumers get a feel for their total cost - fees and the interest. Don't rely solely on comparison rates when choosing a loan and beware of their shortcomings. They only take into account fees and interest rates, not the features and how suitable the loan is for your circumstances.

#11. Have the right information when applying

What you will be required to supply in any application for lease finance will depend on whether the lease is for personal or business use.
Personal lease applications will require:
  • proof of current employment
  • income details or tax returns
Business lease financing requires more detailed information and may include your:
  • balance sheet
  • tax returns
  • cash flow projections
  • business plan
Confirm with the lender what you will need before the interview.

#12. Have you considered a credit card?

Consider also a credit card as your source of credit. Interest rates are generally higher but credit cards are easier to secure and offer greater flexibility of repayments.

#13. Honesty counts

Be honest about why you want the loan. Your bank may be able to offer you a loan option that better suits your circumstances. There are an increasing variety of different types of personal credit these days; car loans, commercial loans, leases, home equity loans, are just some of the examples.

#14. Keep accurate records

Keep accurate records of your deposits and ATM transactions. It is also wise to keep copies of your loan application and approval documents in a safe place.
This is the best way to avoid hefty fees which may be charged by a bank when its customers want to see copies of their cheques or loan files.

#15. Know what interest rate applies

When offered car finance, either lease or loan, always be sure you know what interest rate applies. Lenders often ‘sell’ you their finance packages by quoting the monthly repayments only. This may disguise a high interest rate.

#16. Look beyond the banks

Get a feel for what's on offer across the wide range of financial providers around these days. Credit unions, building societies, mortgage originators, community banks and boutique online or telephone banks may offer better interest rates or lower fees than the big banks because they are anxious to win new business or they are non-profit organisations.

#17. Try lenders with whom you are a regular customer

Take advantage of the human factor. Being a familiar face may earn you some slack if your credit background is smudged.

#18. Understand what's on offer

Is the interest rate fixed or variable? What up-front, annual or ongoing fees are charged?

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

Rate this article

Sign in with Google to rate

0 Comments

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


Business Loans Articles

Common Mistakes to Avoid When Evaluating Your Refinancing Options
Common Mistakes to Avoid When Evaluating Your Refinancing Options
Refinancing can be a powerful tool for small and medium enterprises (SMEs) in Australia. It offers an opportunity to restructure debt, potentially secure better interest rates, and the possibilities of improved cash flow - all critical elements for maintaining and growing a business. Given the dynamic nature of financial markets, refinancing can provide businesses with a strategic advantage to manage their finances more effectively. - read more
Business Loan Roadmap: From Application to Growth in Australia
Business Loan Roadmap: From Application to Growth in Australia
A business loan can support cash flow, equipment purchases, expansion, marketing or other planned investment. For Australian business owners, the process works best when borrowing needs, documentation, lender requirements and repayment capacity are considered before an application is submitted. - read more
Understanding Business Loan Terms and Conditions: A Guide for New Business Owners
Understanding Business Loan Terms and Conditions: A Guide for New Business Owners
Starting or growing a business often requires capital for equipment, stock, staffing, premises or day-to-day cash flow. Business loans can help fund those needs, but the details in the loan agreement determine how the finance works, what it may cost and what obligations the borrower accepts. - read more
The Ultimate Checklist for Applying for a Business Loan in Australia
The Ultimate Checklist for Applying for a Business Loan in Australia
Welcome to the world of boating! Whether you've just bought your first boat or are considering making a purchase, it's essential to understand the importance of regular maintenance. Proper upkeep not only extends the life of your boat but also ensures safety while out on the water. - read more
Startup Loan vs Business Line of Credit: Which Funding Option Fits Your Business?
Startup Loan vs Business Line of Credit: Which Funding Option Fits Your Business?
Starting or growing a business often requires funding for equipment, premises, stock, staff, marketing or day-to-day cash flow. Two common options are a startup loan and a business line of credit. They can both provide access to capital, but they work in different ways and suit different funding needs. - read more
Financial Planning for Business Growth: A Blueprint for Expanding Enterprises
Financial Planning for Business Growth: A Blueprint for Expanding Enterprises
Financial planning becomes increasingly important as a business prepares to expand. A practical financial plan can help an enterprise allocate resources, assess funding needs, manage cash flow and prepare for risks that may arise as operations scale. - read more
Understanding Business Loan Repayments: How Repayment Amounts Are Calculated
Understanding Business Loan Repayments: How Repayment Amounts Are Calculated
Business loan repayments are shaped by the amount borrowed, interest rate, loan term, repayment frequency, fees and repayment structure. Understanding how these factors interact can help Australian business owners estimate affordability and compare loan options more confidently. - read more

Finance News

Business Confidence Signals Put Loan Readiness Back in Focus
Business Confidence Signals Put Loan Readiness Back in Focus
16 Sep 2026: Paige Estritori
Latest Australian business survey reporting is sending a practical message to owners and finance managers: trading conditions may be holding up in parts of the economy, but confidence remains fragile. For SMEs, that mix matters. When revenue is uneven, input costs are sticky and customers are cautious, the timing and structure of new borrowing can become just as important as the headline interest rate. - read more
Why ATO Interest Changes Matter for Business Borrowers
Why ATO Interest Changes Matter for Business Borrowers
09 Sep 2026: Paige Estritori
A tax change now working through Australian business finances deserves close attention from owners, directors and finance managers. Since 1 July 2025, the ATO’s general interest charge and shortfall interest charge have no longer been tax-deductible. For businesses carrying overdue tax or correcting underpaid obligations, that can lift the effective after-tax cost of falling behind. - read more
Payday Super Puts Payroll Timing Under the Finance Microscope
Payday Super Puts Payroll Timing Under the Finance Microscope
02 Sep 2026: Paige Estritori
Australia’s move towards Payday Super is more than a compliance update for employers. For many small and medium-sized businesses, it changes the rhythm of payroll-related cash outflows and places a sharper focus on whether day-to-day liquidity is strong enough to meet obligations as they fall due. - read more
Specialist SME Lending Remains Open, But Discipline Matters
Specialist SME Lending Remains Open, But Discipline Matters
26 Aug 2026: Paige Estritori
Latest market reporting around specialist SME lender Judo Bank points to a business credit market that is not shutting down, but is becoming more deliberate. The lender’s continued focus on relationship-led lending, deposits and small to medium-sized business borrowers suggests demand for finance remains present among firms with clear plans and serviceable cash flow. - read more
Payment Timing Keeps Pressure on SME Working Capital
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
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
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 borrower’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
Click for more Finance News

Need Help Finding a Loan?

Business Loan Repayment Calculator

Business Loan Repayment Calculator
Calculate

Business Loans Australia Weekly News Briefing

Business Loans Australia Weekly News Briefing
Listen

Stay informed with MoneyTips

Get practical financial information, news, guides and resources.

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

Knowledgebase
Bear Market:
A market condition where the prices of securities are falling, and widespread pessimism causes the negative sentiment to be self-sustaining.