Securing finance is about more than just needing capital—it’s about proving to lenders that your business is a safe, strategic investment. Whether you’re applying for equipment finance, a business loan, or a line of credit, knowing what lenders look for can dramatically improve your chances of getting approved. 

At Capital Plus Finance, we help business owners prepare strong applications and match them to the right lenders. Here’s how to boost your borrowing power and secure better finance terms in FY26. 

The 5 Key Things Lenders Look At 

1. Business Cash Flow 

Cash flow is king. Lenders want to know that you can comfortably meet repayments. Even profitable businesses can be rejected if their cash flow is inconsistent or strained. 

💡 Tip: Provide 3–6 months of bank statements and a simple cash flow forecast if available. 

2. Credit History 

Your business credit file (and sometimes your personal one) will be reviewed. This includes defaults, late payments, and your past history with loans, credit cards, and ATO arrangements. 

💡 Tip: If your credit isn’t perfect, work with a broker to explain the situation or seek out low-doc lenders who assess beyond credit scores. 

3. Time in Business 

Lenders usually want to see that you’ve been trading for at least 6–12 months, with some requiring two years. Newer businesses aren’t out of options, but may need to provide more context. 

4. Industry Risk 

Some sectors are seen as higher risk (e.g. construction, hospitality, transport). This doesn’t mean you won’t get approved, but it may affect the lender or structure chosen. 

5. Security & Collateral 

For secured loans (like equipment finance), lenders assess the value and condition of the asset being financed. For unsecured loans, they’ll focus more on cash flow and credit strength. 

Simple Ways to Improve Your Position Before Applying 

• Keep your financials up to date: lenders prefer recent BAS and P&L statements 

• Pay suppliers and creditors on time to avoid negative credit reports 

• Reduce unnecessary business debt before applying 

• Provide context: explain dips in revenue or one-off expenses 

• Apply for the right amount—borrowing too much can be a red flag 

Documents That Help Speed Up Approval 

• 6 months of business bank statements 

• Most recent BAS statements 

• Driver’s licence and ABN/ACN 

• Existing loan statements (to demonstrate good account conduct) 

• Quote or invoice for equipment (if applicable) 

What If You’ve Been Declined Before? 

Don’t panic. A rejection from one lender doesn’t mean your business is unfinanceable. Brokers like us can repackage your application and present it to other lenders who may have different risk appetites. 

Final Thought 

The better prepared you are, the better your loan terms will be. By understanding how lenders assess applications, you can take proactive steps to strengthen your case and unlock the funding your business needs to thrive. 

Grow Your Business Without the Cash Flow Strain – Explore Equipment Finance Solutions 
Need to upgrade machinery or invest in better tools? Our tailored finance options help you move forward without draining your cash reserves.  

👉 Book a meeting   with the Capital Plus Finance team today