Switchboard Finance logo – Bank Statement glossary

Bank Statement

A Bank Statement is a monthly summary of all transactions in your business or personal bank account, used by lenders to assess cash flow, spending habits, and repayment ability. It is one of the most important documents for Low Doc Asset Finance, Business Loans, Working Capital Loans, and Invoice Finance. Related terms: BAS, Bank Feeds, Servicing, Affordability. Relevant blogs: Fast-Track Asset Finance, Equipment Finance Mistakes, Low Doc Cashflow Loans, Business Cashflow System.

Why Bank Statements Matter

Bank statements allow lenders to verify whether your business has stable income, manageable expenses, and the capacity to meet loan repayments. They are crucial across the Tradie Hub, Truckie Hub, Café Hub, and Whitecoat Hub, where cash flow patterns differ widely between industries.

How Lenders Use Bank Statements

  • Confirm consistent income and overall cash flow stability.
  • Identify debt repayments, rent, subscriptions, and large expenses.
  • Check for dishonours, overdrawn balances, or signs of financial stress.
  • Validate turnover when applying for Low Doc Asset Finance.
  • Support approvals for Business Lines of Credit and Working Capital Loans.

Official info: business.gov.au

Why do lenders need bank statements?
They help verify income stability, cash flow, and repayment capacity.
How many months of statements are required?
Most lenders request 3–12 months depending on the loan type.
Do personal bank statements matter?
Yes — especially for sole traders or when supporting affordability checks.
Can I use bank feeds instead?
Many lenders accept digital bank feeds for faster assessment, but some still require PDFs.
What red flags do lenders look for?
Dishonours, frequent overdrafts, gambling transactions, and unstable turnover patterns.