Quick answer
Cash flow lenders decide on your bank statements, so a slow few months, an ATO debt or too many existing loans can mean an instant no. A property-secured business loan looks at a different thing: the equity in your home, investment property or commercial property. If there's enough equity, you can borrow $20k to $5 million and be funded in as little as 24 hours.
Key points
- Cash flow lenders score bank statements; property lenders look at equity.
- A decline from a cash flow lender doesn't rule you out.
- Past credit issues and ATO debt are considered case by case.
- Funds in your account in as little as 24 hours.
- Loan amounts
- $20k to $5 million
- Decided on
- Property equity and your plan
- Funding
- In as little as 24 hours
- Repayments
- None for up to 6 months
You applied online, uploaded your bank statements, and within minutes the answer came back: declined. It’s a horrible feeling, especially when the money is needed this week. But a no from a cash flow lender is a no to one way of lending. It isn’t a no to your business.
Why cash flow lenders say no
Cash flow and online lenders make fast, unsecured decisions by running your bank statements through a scoring model. That model is looking for steady deposits and nothing that looks like risk. Common reasons for a decline include:
- A dip in turnover over the last few months
- Dishonoured payments or a bank account in overdraft
- An ATO debt or missed payment plan instalments
- Daily or weekly debits from other lenders already on your statements
- A business that’s newer than their minimum trading time
- An industry the model doesn’t like
None of that means your business can’t be funded. It means the lender had nothing to fall back on except the statements.
What a property-secured lender looks at instead
If you own property, personally or through your company or trust, there’s another way. A property-secured business loan is decided on:
- Equity: what the property is worth against what’s owed on it
- Purpose: what the money is for
- Exit: how the loan gets repaid, whether that’s a refinance, a sale or the business’s own cash flow
A lending manager looks at your whole situation, not a score. Past credit issues and ATO debt are considered case by case.
What you could borrow
From $20k to $5 million, secured by a first mortgage, a second mortgage or a caveat. There’s no valuation needed before approval, and funds can be in your account in as little as 24 hours.
You can also have up to 6 months with no repayments, with the interest added to the loan. That’s a world away from the daily debits most cash flow loans take straight out of your account.
Fixing the problem, not just plugging it
A property-secured loan can be big enough to fix the whole problem in one go: clear the ATO debt, pay out the expensive cash flow loans and leave working capital in the account. See refinancing cash flow loans with property.
What to do now
- Don’t apply to five more online lenders. Every application takes time, and some do run credit checks.
- Find your property paperwork. The latest rates notice and mortgage statement.
- Write down the number. What you need, what it’s for and how it gets repaid.
- Send one enquiry. It takes about 60 seconds, and a real person reads it.
Cash flow lending and property-secured lending side by side
| Cash flow lender | Property-secured private lender | |
|---|---|---|
| Decides on | Bank statements and a score | Property equity, purpose and exit |
| Typical amount | A share of monthly turnover | $20k to $5 million |
| Repayments | Daily or weekly debits | None for up to 6 months |
| Credit issues or ATO debt | Often an automatic no | Considered case by case |
| Speed | Fast for small amounts | Funds in as little as 24 hours |
Real situations we see
- The seasonal dip. A landscaping business has a slow winter. The online lender sees three weak months and declines. The owner has equity in the family home, and a second mortgage business loan carries the business through to spring.
- The ATO payment plan. A café owner missed two instalments on an ATO payment plan. The cash flow lender won’t touch it. A caveat loan clears the debt in full.
- The stack. A trades business already has two online loans. A third lender declines. One property-secured loan pays out both and stops the daily debits.
Will a property-secured loan cost more?
Every loan is priced on your individual circumstances, so the only way to know is to ask. What often surprises owners is how the total cost compares once daily debits, fees on stacked loans and the cost of missed opportunities are counted. Your lending manager will set out every cost in the conditional approval before you commit to anything.
When you’re ready, send your enquiry. It takes about 60 seconds.
What if I don’t own property?
A property-secured loan needs equity in real estate, owned by you, your company or your trust. If you don’t own property, tell your lending manager anyway. They’ll be honest about what’s realistic and point you in the right direction rather than leaving you guessing.
Don’t let one decline make the decision for you
A decline from an algorithm says more about the algorithm than about your business. If you have property, you have options, and a real person will look at them with you.
Frequently asked questions
Why did the cash flow lender decline me?
Usually because of what their algorithm saw in your bank statements: falling turnover, dishonours, an ATO debt, other lenders' daily debits, or a business that's too new. None of those stop a property-secured loan if there's enough equity.
Will another decline hurt my credit file?
There's no credit check to enquire. A credit check only comes up once you've talked through the options and decided to go ahead.
I own my home but the business is struggling. Can I still borrow?
Often, yes. The decision rests on the equity in the property, what the money is for and how the loan gets repaid, not on a perfect trading year.
How quickly can I be funded after a decline?
With a complete file, approval can come within the hour and funds can be in your account in as little as 24 hours.