Newer business (under two years)? Call prep that gives a lender something to work with

Every established business was once a newer one, and many of the owners who ask us to ring them are in their first year or two. The challenge is simple to describe: lenders like to see how a business has performed over time, and a newer business doesn’t have much “time” to show.

The fix is to give the specialist other things to work with. Here’s what helps, and how to prepare.

What will the specialist ask a newer business?

• How long have you been trading, and how has it gone so far?
• What did you do before? Especially in the same industry.
• How does the business earn? Customers, pricing, repeat work.
• What’s already locked in? Contracts, purchase orders, bookings, a tender win.
• What’s the money for, and how will it be repaid?
• What have you put in yourself? Savings, equipment, property equity.
• Do you own property? Personally or through the business.

What should I have ready?

Have ready	Why it helps
Business bank statements since you started	The clearest evidence of trading so far
Any BAS lodged	Confirms turnover in the ATO’s own records
Financial statements or management accounts, if prepared	Shows profit, not just deposits
A short summary of your industry background	Fills the gap that trading history can’t
Contracts, orders or bookings	Shows future income is more than a hope
Your own contribution	Shows commitment and reduces the amount
Property details, if you own any	Can support business loans from $20,000 to $5,000,000

business.gov.au’s guidance on applying for a business loan lists identification, a business plan, financial reports and forecasts, lease agreements and personal financial information among the things lenders may ask for. For a newer business, the plan and forecast carry more weight than usual. The call-prep tool builds a tailored checklist if you tick “Business has traded less than two years”.

When you’ve pulled those together, request your call-back here.

What fills the gap when trading history is short?

Think of it as building a case from several angles:

Your experience. A plumber with twelve years on the tools who’s just started their own business is a very different proposition from someone new to the trade. Write two or three sentences about your background before the call.

Contracted income. A signed contract, a purchase order from a known customer, or a run of confirmed bookings shows income is coming. Have copies ready.

Security. Property widens the options for newer businesses considerably. The Reserve Bank’s October 2025 Bulletin found that around half of small business loans are backed by residential property.

Your own money in. Savings, equipment you’ve bought outright, stock you’ve paid for. It shows you’ve backed the business yourself.

Clean records. A dedicated business bank account with all takings flowing through it, BAS lodged on time, and bookkeeping kept current. These cost little and tell a lender a lot.

What if I haven’t lodged a BAS yet?

That’s normal for very new businesses. Bank statements carry the story until then. If your first BAS is due soon, lodging it on time adds a useful piece of official evidence. Quarterly BAS is due on 28 October, 28 February, 28 April and 28 July.

Which options are realistic for a newer business?

It depends mostly on security and what the money is for:

• Equipment finance can suit newer businesses, because the equipment itself supports the loan. See our equipment call prep.
• Property-secured loans are often the most accessible route for newer businesses with property.
• Unsecured options for trading businesses — typically $5,000 to $500,000, sized on turnover and bank statements — generally need some trading history to size against. Ask the specialist what’s realistic for your time in business.

What should I ask?

• What would make my application stronger in three or six months’ time?
• Is a personal guarantee needed, and what does it cover?
• If I start smaller now, can the limit grow as the business does?
• What’s the total cost in dollars, including fees?

Our page on personal guarantees and security explains what you’re agreeing to. And before the call, the eight-question Call-Ready Check shows which gaps are worth closing first.

What does a newer business’s first call usually cover?

Here’s an illustrative example of how a first call might run for a food van operator eight months into trading (not a real business):

• What’s needed: about $25,000 for a second generator and a refrigeration upgrade, so the van can take on event work.
• Trading so far: eight months of deposits into a business account, with two BAS lodged.
• Background: six years as a chef, two of them running a kitchen.
• What’s locked in: bookings for four events over summer, with deposits paid.
• Security: no property; the equipment itself could support part of the finance.

With that information, the specialist can talk specifically about equipment finance secured on the new gear, what the bookings and trading history support, and what would strengthen the application — for example, lodging the next BAS before applying. Without it, the call would be mostly questions.

Notice what the owner had ready: a clear purpose, a trading record (however short), relevant experience and evidence of future income. That combination is what makes a newer business easier to fund.

Ready to talk about your new venture?

Being new isn’t a barrier to asking — it just means the first call covers more ground. There’s no credit check to ask, your request isn’t parcelled out to strangers, and a real specialist reads it before calling you.

Please be accurate about how long you’ve traded, your turnover so far, your state and any property you own — it’s how we point you to the right option on the first call. Choose a time and we’ll ring you.