Business should have their review published annually based on their past year’s performance and business loan annual review is an important factor lender checks before approving or declining a loan to the business.
The reviews for business loans are conducted yearly and they’re basically a financial health check of your business to make sure that you can qualify for a business loan.
Among other things, you need to provide up-to-date financials for your business, which can be difficult especially if you don’t have an accountant to help or you’re using a strategy to reduce your taxable income.
The bank will usually send an email (although it’s usually a legal requirement to send a letter) telling you that your annual review is coming up and will ask you to send through your latest business financials:
- Accountant-prepared profit and loss statement (P&L) and the balance sheet showing your profits, assets, and liabilities for the past financial year.
- They may ask for your latest Business Activity Statement (BAS).
- Your latest personal income tax return (only needed if you’re a sole trader operating under your own name).
- Your latest Australian Taxation Office (ATO) tax portal (this statement shows that your taxes have been paid on time. If they haven’t, it’ll show interest charged and it may be an indication that the business is in financial trouble or being mismanaged).
However, the good news is that you may be able to skip it altogether. We can be reached on 1300 889 743 or you can fill in free assessment form to see if you qualify for a loan or not.
Cheers,