ABN loans are a unique loan type that many people may not have heard of. This specific loan solution is relevant to ABN holders and acts similarly to a small commercial loan. Due to the increased popularity of these loan types, it’s become crucial to understand their benefits, what these loans mean for ABN holders, and how they can be acquired.
Looking for additional business loan types, such as ABN vehicle finance or finance for tradies? We offer that and more, making life a little simpler for you. Get your best rate now!
What Are ABN Loans?
These loans have been created for people who hold what is known as an Australian Business Number (ABN). Their primary use is for conducting business, and thus, are commonly referred to as ABN business loans. As such, if an individual is looking to acquire this loan type, the first imperative criteria is owning an ABN. Whether a business is GST registered or not is not compulsory. Much like other finance avenues, there a number of loan types that fall under the ABN loan umbrella.
The ABN Loan Application Process
The application process for an ABN loan really comes down to the lender, but there are a few common requirements you will notice, which you will also find here at Fido Finance:
– Credit Check: This is where the lender looks into your credit history as well as your credit score to determine its health, and your reliability to maintain a stable budget and pay bills on time.
– Financial History: Lenders will always ask for documents such as bank statements, tax returns, pay slips, as well as business profit and loss statements.
– General Queries: What the purpose of the loan is, and how much funding you are wanting to acquire for the expense.
– Risk Profile: This is a fundamental aspect to receiving your ABN loan. Risk refers to how likely you are to default on payments.
All of the information that you provide is going to assist in determining your approval, as well as the interest rate attached to the approval, and whether you are considered a risk or not. Your tax return, and the length of GST registration is going to determine how many documents are needed for this process.
GST & ABN Registration Period
In order to be successful for an ABN loan, you will need to have held your ABN for at least two years, which proves you have been in business for a long enough period to have gained financial stability. The ABN also needs to be the same one you use when paying GST.
Let Fido Finance Fetch the Best Deal on ABN Loans
At Fido Finance, we consider ourselves agile brokers – a team who can adapt to your requirements and work out the best finance solution that will see your business succeed. Whether you need additional equipment or it’s time to add a vehicle to your fleet, we can make it happen within 24 hours* and at a favourable interest rate.
