Starting a new business can be exciting. Applying for finance is one of the first steps that many new businesses take to help them get off the ground.
While longer-established businesses might be able to show years of documents to support their application, new businesses often don’t have this history.
Here are three possible alternatives that might support your application:
- other sources of income - income from a rental property or investments, or maintaining an income by working somewhere else until your business takes off
- any relevant industry experience - this might be employment history in the same field as your new business, for example if you’ve worked elsewhere and decided to go into business for yourself
- supporting documents - supporting documents can strengthen your application and give confidence in your business growth and outlook
You might want to consider preparing the following:
1. Business plan
This document shows your business strategy and goals for both the short and long term. An accountant or business consultant can help you prepare a business plan.
2. Cash flow projection
This is a document that shows your estimated income and expenses over a 12-month period. It will show whether your projected income will be enough to meet any finance requirements. If you submit a cash flow projection, it needs to be prepared by an accountant or business consultant.
3. Business Activity Statement (BAS)
This is a form you submit to the Australian Taxation Office (ATO) if your business is registered for Goods and Services Tax (GST). It helps you report and pay your GST and pay as you go (PAYG) instalments and withholding tax. Not all businesses will have this, but if you do, it can help show your cashflow and how you manage it.
4. Interim financial statements
These are documents that show your business activities, including your balance sheet, income, cash flow, changes in equity and notes of explanation. Your accountant can help you to establish these.
If you have any current or future agreements from customers, these can help to show your business income.
Business ID check
If you’re applying for car and equipment finance at CommBank and you’re a new customer, you’ll also need to do a business ID check. Your nearest CommBank Business Banker can help you with this.
Ready to apply?
To apply for car and equipment finance at CommBank, complete the online quote. If you've already applied and have your financial documents ready for your application, give us a call or visit your nearest branch.