Lenders need to know that the funds you borrow will be repaid.
One of the most important indicators for lenders is your personal spending habits.
The lender will usually require information from the past three years. This ensures any unusual circumstances are “averaged” over the period.
Types of personal information can include:
- Personal assets – purchase price and date, independent valuation if available, ownership documents (i.e. mortgage or leasing agreements) and, for any policies, the most recent policy statements.
- Tax returns – you may be asked to supply supporting documentation to the tax schedules such as proof of income from investments.
- Personal bank details – all statements issued from the bank or financial institution. For bank loans, include the original loan agreement as well as the statements.
Download a table that you can use to complete your personal information from the Forms & Checklists section.
Personal credit check
When you apply for a loan, it’s likely the lender will complete a personal credit check; the authorisation to do so is usually included on your application form.
A clear report means you have not, in the past, defaulted on any payment obligations. This will have a positive impact on your business application.
You can check your personal credit rating through various credit bureaus. Web addresses are included in the Helpful websites page under the Resources & Tools section.