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6–12 Months Trading

6–12 Months Trading refers to a business that has been operating for at least six to twelve months. Lenders often require this minimum trading period to verify financial stability, cashflow, and repayment ability. It is particularly relevant when applying for Low Doc Loans or Working Capital Loans, and in some cases near “no doc” style solutions. Related blogs include Low Doc Cashflow Loans, Cashflow Mistakes SMEs Make, and Business Cashflow System.

Why 6–12 Months Trading Matters

Lenders use the 6–12 months trading period to assess business consistency, cashflow patterns, and repayment capacity. This period also affects Borrowing Capacity and Affordability. SMEs in the Tradie Hub, Truckie Hub, Café Hub, and Whitecoat Hub benefit from a verified trading history for faster finance approval.

How Lenders Evaluate 6–12 Months Trading

  • Review bank statements, BAS, and invoices to confirm trading history.
  • Verify cashflow and revenue consistency over the 6–12 month period.
  • Compare operational costs and expenses against revenue.
  • Assess repayment ability and affordability for requested finance.
  • Consider this period as part of broader financial evaluation including turnover and cashflow assessment.

Related Switchboard Resources

Official info: business.gov.au

Why do lenders require 6–12 months trading?
Lenders require this period to verify consistent cashflow, business stability, and repayment capacity.
Can a newer business apply for finance?
Some lenders accept businesses trading less than 6 months but often require higher documentation or guarantors.
Does trading history affect loan approval amount?
Yes — verified trading history helps lenders set realistic borrowing limits and repayment schedules.