A Public Company is a business structure that can list shares on the Australian Securities Exchange (ASX) and raise capital from the general public. Public companies must meet strict governance, reporting, and audit requirements. When applying for finance, lenders assess audited financials, revenue, net income, and cashflow forecasts. Public companies may use facilities like Business Line of Credit, Invoice Finance, or Working Capital Loans.

Why Public Companies Matter in Lending

Public companies have greater transparency due to mandatory reporting and auditing. This gives lenders stronger confidence in financial accuracy, but also higher scrutiny.

• Must file audited financial statements
• Must meet ASIC and ASX governance rules
• Large shareholder bases reduce individual control
• Borrowing decisions require board resolutions or director authority
• Often require more complex loan structures

Public companies often use lines of credit or invoice finance to manage large-scale operational cashflow.

Key Features of Public Companies

• Can raise money from the public
• Can be listed on the ASX
• Must publish annual reports and audited statements
• Shareholders elect directors
• Higher disclosure and compliance obligations

Official reference: asic.gov.au