OPINION: The bank wants to lend money. But we want to see good account conduct.
It's easy to get busy, not monitor your cash flow and end up with late payments and overdrawn accounts.
Before applying for a loan, be sure you look good on paper.
Keep your accounts in good order for one year.
If you have gone outside of your arrangements, had you organised with your financier prior to it occurring?
Have a read through your statements, are there regular monthly payments coming out which the bank may seek further clarification on ie are they loan payments or insurance payments.
Have you had a default listed against you? If so what were the circumstances and has it been paid.
If it has been paid has this been updated through the credit bureau, some businesses are quick to lodge a default but can be slow in updating to advise cleared.
Be sure to tell the bank about all debts you have including loans you are a guarantor for.
By being upfront and confirming these points you may save unnecessary delays in approval.
Mark Moller is Wide Bay Australia's business banking manager. Visit www.widebayaust.com.au for more information.