The numbers lenders want to see
The opportunity is real. The plan is sound. The lender is interested. Then comes the list: two years of financial statements, a current profit and loss, aged debtors, BAS lodgements, bank statements. Some are out of date. Some are overdue. Some can't be found. The application stalls, and the opportunity waits.
Funding is often delayed by paperwork, not by the business. Lenders read the numbers before they read the plan, and when the numbers aren't ready, nothing else moves.
The short version
- Current books are one of the quickest ways to speed up business loan approval.
- Lenders typically ask for recent financial statements, current trading figures, tax lodgements, aged debtors and creditors, bank statements and a forecast.
- Current, well-kept books mean that file comes together in days rather than weeks, and gives the lender confidence.
- NOIZE Books keeps the records current, NOIZE Accounting prepares statements and forecasts and NOIZE Finance presents the package to the right lender.
What lenders usually ask for
01Financial statements
Profit and loss and balance sheet for recent financial years.
02Current trading
Year-to-date profit and loss and balance sheet.
03Tax lodgements
BAS and income tax lodgements up to date.
04Aged receivables and payables
Who owes you, who you owe and how long.
05Bank statements
Recent statements showing cash flow.
06Forecast
Expected income, expenses and cash flow, showing capacity to repay.
07Use of funds
What the money is for and how it will help the business.
Why current books speed approval
- Faster preparation. Documents can be produced quickly.
- Consistency. Statements, BAS and bank records agree with each other.
- Credibility. Up-to-date, organised records signal a well-run business.
- Fewer questions. Clear records reduce back-and-forth with the lender.
> I've co-founded companies and raised funding more than once. The fastest approvals came when we could send everything the lender asked for the same day. The slowest came when we had to reconstruct numbers. The business was the same. The paperwork made the difference.
“Things really got moving beyond our expectations.”
How Books and Finance work together
NOIZE Books hands to NOIZE Finance when the numbers support a funding case. Books makes sure records are current and reconciled. Accounting prepares financial statements and a forecast. Finance helps present it clearly, working with our dedicated broker. Because they share the same records, there are no inconsistencies to explain.
An illustrative example
Picture a manufacturer applying for equipment finance with books four months behind and one BAS overdue. Books catches up the records and lodges the BAS, Accounting prepares current statements and a forecast, and Finance submits a complete file to a suitable lender. The application, which had stalled for weeks, is assessed quickly.
Mistakes to avoid
- Don't wait until you need funding to get the books current.
- Don't submit figures that don't match your BAS or bank statements.
- Don't forget the forecast. Lenders want to see how repayments will be met.
What we handle, and when specialists step in
Much of this is administration NOIZE Books handles for you: entering bills and invoices, processing payroll and setting up Xero. Alongside the admin, we advise on how the numbers lenders want to see fits the wider plan.
For anything requiring a registered agent, such as for lodgements, we use an appropriately qualified professional. Exactly how that is shared is agreed at the strategy or proposal stage.
That flexibility lets the business get help with exactly the parts it needs, without paying for the rest.
Questions to ask before applying for funding
- Are the books reconciled to this month?
- Are all BAS lodgements up to date?
- Do the financial statements match the BAS and bank statements?
- Can we produce aged debtors and creditors on request?
- Is there a forecast?
- Is everything organised in one funding pack?
Ticking these off before speaking to a broker saves weeks.
Where to start this week
Check whether your BAS lodgements are up to date and when your books were last reconciled. If either is behind, that is the first step towards being funding ready. See books.noize.com.au and finance.noize.com.au.
Put everything a lender asks for into a single funding pack, labelled and in order, with a cover page on top. It makes the broker's job easy and the application stronger.
How Books connects to the rest of NOIZE
Here is how the other departments support this work. NOIZE Accounting relies on clean records to plan, forecast and advise, with appropriately registered professionals handling regulated lodgements. NOIZE Finance uses current books to build funding packs that brokers and lenders take seriously. NOIZE Strategy uses the numbers to test which priorities the business can afford. NOIZE Talent relies on payroll being set up correctly for every new person. When Books sits inside the same group, the records are ready for whoever needs them next.
Related reading
This article is general information only. It is not legal, tax or financial advice, and it does not take your circumstances into account. Speak to a qualified adviser before acting.
NOIZE provides administrative support and business strategy. Where work is outside our skillset, or the law requires it, we make sure an appropriately qualified professional is involved.
Common questions
What documents do I need for a business loan?
Usually financial statements, current trading figures, tax lodgements, aged debtors, bank statements, a forecast and a use of funds.
Can I get a loan if my books are behind?
It is harder. Getting books current first usually speeds up approval.
Do lenders check BAS?
Many do, to confirm turnover and tax compliance.
What is aged debtors?
A report of money owed to you, grouped by how long it has been outstanding.
How long does it take to prepare a funding file?
With current books, often days. With books behind, it can take weeks.
Who prepares the forecast?
NOIZE Accounting, using current records from Books.
Does NOIZE find the lender?
Yes. NOIZE Finance helps however suits you, from an introduction to our dedicated broker to preparing the full funding pack.
What else improves approval chances?
A clear use of funds, consistent records and evidence of capacity to repay.
Can NOIZE Books lodge our BAS?
We prepare everything from current books. Lodgement is handled through an appropriately registered professional where the law requires it.
What is a funding pack?
One organised document, with a cover page, containing everything a broker or lender needs.
Does NOIZE have a broker?
Yes. NOIZE Finance works with a dedicated broker.
Do you chase overdue invoices?
Yes. Following up accounts receivable is part of keeping cash healthy.
Do you work with software other than Xero?
We work mostly in Xero and can advise on moving from other platforms where it makes sense.
How much does bookkeeping cost?
It depends on transaction volume, payroll and how current the books are. We scope it after a short conversation.
Can I see my numbers any time?
Yes. With cloud software, your books are available whenever you need them.
Do you handle accounts payable?
Yes. Entering and scheduling supplier bills is part of NOIZE Books.
What goes on the funding pack cover page?
The business name, a short summary of the request, the amount, the purpose and a contents list.
Should the funding pack include a forecast?
Yes. It shows how repayments will be met, which is one of the lender's first questions.
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