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Approval Criteria

Approval Criteria are the key factors lenders use to assess a business’s finance application. These criteria often include cashflow, trading history, affordability, creditworthiness, and compliance with regulatory obligations. They determine eligibility for Low Doc Loans, No Doc–style options, and Working Capital Loans. Relevant blogs include Fast-Track Asset Finance, Low Doc Vehicle Finance Guide, and Tradie Finance Australia.

Why Approval Criteria Matter

Understanding approval criteria helps businesses prepare documentation and improve their chances of finance approval. It directly impacts Borrowing Capacity and Credit Limits. SMEs in the Tradie Hub, Truckie Hub, Café Hub, and Whitecoat Hub benefit from knowing what lenders assess before applying.

How Approval Criteria Are Evaluated

  • Examine business cashflow and profitability.
  • Review trading history and bank statements.
  • Assess affordability and repayment capacity.
  • Check credit history, past defaults, and BAS compliance.
  • Consider other regulatory and industry-specific factors.

Related Switchboard Resources

Official info: business.gov.au

What factors are included in approval criteria?
Factors include cashflow, trading history, affordability, credit score, and regulatory compliance.
Can understanding approval criteria improve my chances?
Yes — knowing what lenders look for helps businesses prepare better documentation and meet lender expectations.
Are approval criteria the same for all finance types?
Criteria vary depending on loan type (Low Doc, No Doc, Equipment Finance, etc.) and specific lender policies.