Applying for a personal or business loan can be stressful, complicated and a little overwhelming to say the least. That’s why, at Pherrus, we assist our clients through every step of their loan application process. We’ll also help you organise your finances and resolve outstanding “red flags” to increase your eligibility.

Questions to Ask

We recommend that you complete the following questions before you approach your bank for any kind of loan.

Do You Meet Your Bank’s Criteria for a Loan?

In order to qualify for a business or personal loan, Australian banks will generally want you to meet their loan criteria. For instance, the Commonwealth Bank requires you to be the following: a citizen of Australia or New Zealand or a permanent resident; 18 years of age or older; have good credit standing; reside in Australia; and meet the bank’s minimum income requirements.

Does Your Income Qualify for the Loan Amount?

Each bank has different business and/or personal income requirements relating to the size of the desired loan. Certain banks, such as the Commonwealth Bank, even offer an online loan calculator to see if your income is sufficient to qualify for a certain loan amount.

Do You Have an Account History with the Lender?

If you already have a great account history with your bank of choice, it will help you get approved for a loan. An account history that includes a low balance and lots of overdrafts is obviously going to be far less attractive to a bank than one with a high balance and regular electronic pay deposits.

Do You Have a Good Credit Rating?

You and/or your business’ credit rating will factor heavily in your bank’s decision to loan you funds, so check what your rating is before approaching you bank. If you have a low credit rating, Pherrus can help with strategies to improve it.

Do You Have a Regular Savings Plan?

A savings account that shows regular contributions demonstrates financial responsibility and an ability to save extra cash. If you and/or your business do not already have one, establishing a savings plan and sticking to it will make you more attractive to lenders.

Do You Have a Sound Business Plan?

Many businesses fail during their first few years of operation. Therefore, if you’re applying for a business loan, your lender will want to see that you have taken the steps necessary to create a clear and viable plan for business success.

Stay Organised and the Rest Will Follow

At Pherrus, we will help you get organised for your loan applications, and also help with strategies to prepare your finances to be attractive to lending organisations.

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