Switchboard Finance Logo – Credit Assessment Glossary

Credit Assessment

A Credit Assessment is the process lenders use to determine whether a borrower can safely repay a loan. It includes reviewing Bank Statements, Credit Score, Borrowing Capacity, Security, financial statements, cash flow and trading history. Credit assessments apply to Business Loans, Equipment Finance, Vehicle Loans, Low Doc Finance, and Invoice Finance. Relevant blogs: Fast-Track Asset Finance, Equipment Finance Application Mistakes, What Lenders Look For With Defaults.

Why Credit Assessment Matters

Every lender uses a Credit Assessment to decide whether a loan is responsible and affordable. Strong assessments lead to faster approvals, sharper pricing and better loan terms across the Tradie Hub, Truckie Hub, Café Hub, and Whitecoat Hub.

What Lenders Check

  • Bank statements (cash flow, spending behaviour, account conduct)
  • Credit file, enquiries, arrears and defaults
  • Financial statements and BAS
  • Loan security and assets
  • Business age, industry and trading history
  • Borrowing capacity and repayment strength

Official info: asic.gov.au

What is a Credit Assessment?
A Credit Assessment is the lender’s evaluation of whether a borrower can safely repay a loan.
What do lenders look at?
Lenders review bank statements, credit history, financials, security and overall risk.
Does a Credit Assessment affect approval?
Yes — strong assessments lead to faster approvals and better loan terms.
Do all lenders assess credit the same way?
No — each lender has its own policies, risk models and eligibility criteria.
How can I improve my Credit Assessment?
Improve bank conduct, reduce debt, fix defaults and strengthen your financial documents.