Nowadays, lenders offer to help self-employed or Australian Business Number (ABN) holders by providing access to funds such as ABN loans or those with no credit check. No credit check ABN loans are also offered in the market because of the increase in need of this type of loan. Specialist lenders and borrowers utilise these loans which may also fall under low documentation loan. ‘Low doc’ loan is intended for borrowers who might not have the standard financial documentation required for a traditional loan.

With ABN loans – “no credit check” application, the focus of the lender’s assessment will be on your capability to make the loan repayments, instead of your credit history. You need to demonstrate that your income or other earnings will suffice the reimbursements. Another document to help do this is through your current 90-day bank statement.

You will also be asked to provide an ABN during the application process. An ABN is issued by the Australian Business Register (ABR) to enable businesses to deal with different government departments and agencies. An ABN is used by the lenders to verify the existence of your business and it also indicates your financial stability.

Aside from demonstrating to lenders that you indeed own your business, an ABN also proves that you are not just trying to obtain funds through a ‘low doc’ loan. ABNs add legitimacy to businesses and come with various tax benefits. These are some of the reasons why many Australian business owners want to have an ABN.

To search for your ABN, use the government’s ABN Lookup website. You can apply at ABR if you do not have your ABN yet.

How to apply for an ABN to be used for ABN loans?

Australian Business Register should be able to identify you from the information you provide such as your tax file number for a faster application process. Be sure to prepare all necessary information beforehand to avoid delays in your ABN application and issuance. You may still start your application even if you don’t have all the information, start here.

If your ABN application was successful:

• The issuance and receipt of your 11-digit ABN will be immediate.
• Save your ABN confirmation and details.
• You may now apply for other business registrations, such as Goods and Services Tax (GST).
• Your details will be added to the ABR. For privacy concerns, you may request for non-disclosure of certain details.
• Keep your details up to date.

A reference number may be issued and you will be contacted if more information is needed.

If your ABN application was unsuccessful:

• Keep in mind that not everyone is entitled for an ABN. If you’re application is unsuccessful, you will receive a refusal number and a confirmation letter, which includes the reason for the refusal and available options for you.

Aside from your ABN, other information such as business tax returns, individual tax returns, tax assessment notices, Business Activity Statement (BAS), and documentation of profit and loss will be required for a low doc loan. You may also be required to provide a business plan and a letter from your accountant stating that he believes it is reasonable for you to acquire and pay the loan.

What do you need ABN loans (with no credit check) for?

Business owners often use different types of business loans and commercial finance to make much needed investments such as:

• A home or investment property
• Agricultural machinery
• Company car or fleet
• Company truck, Ute or motorbike
• Equipment
• Technology, solar or sustainability

Tips for your ABN loans application

• Prepare your business plan. Your business plan must be concise, yet include enough details to encourage a lender or investor to finance your business. It’s important to know your key financial figures. These figures include your current income, net profit, expenses and future projections. If you are not confident to answer financial questions, bring along a business adviser or accountant to help you.

• Know your limitations. You need to know your financial limits and your repayment ability. Ask yourself some of these questions: What is the maximum repayment you can afford? What is your loan to value ratio (LVR)? What assets can you offer as collateral?

• Dress to impress. First impression is the most lasting. The way you present yourself sets the tone and shows the lenders that you mean business.

Not all businesses work similarly. Whatever your business requires, try to find solutions that suit your cash flow. Look for lenders that are willing to provide a tax-effective finance solution with flexible repayments. This panel of lenders may include banks, non-traditional lenders, and peer to peer lenders. Cigno Business Solutions specialises in ABN loans – no credit check product and can help you with your financial and credit file situation.