What’s a sensible credit limit to request?

Start with the smallest workable credit limit that covers your gap weeks. Oversizing the limit is the easiest way to trigger extra questions or stricter terms.

Will I need a director’s guarantee for a cashflow facility?

Often, yes — a director’s guarantee is common in business lending. The practical focus is keeping the limit and repayment plan aligned to real trading weeks.

What does “responsible lending” mean here?

Responsible lending is basically that the facility should be affordable in normal weeks, not just your best month. Clear documents help demonstrate that.

What approval criteria matter most for low doc cashflow?

The key approval criteria theme is consistency: predictable inflows, sensible limit, and a clear use case. That’s why the documents pack matters so much.

What’s a loan covenant — and should I stress about it?

A loan covenant is a rule in the facility terms (like maintaining certain reporting or limits). You don’t need to panic — you just need to understand what triggers it and keep your reporting tidy.

ABN Age & Approval Limits (2025): How Lenders Size LOC, Working Capital & Invoice Finance

15 Dec

Written By Nikki Lim

ABN age and approval limits for business line of credit, working capital and invoice finance – Switchboard Finance

📎 Docs checklist · Low Doc cashflow · 2025

Low Doc Cashflow Facility Documents Checklist (2025): LOC, Working Capital & Invoice Finance

Most “slow approvals” aren’t about the lender being difficult — they’re about missing documents and unclear explanations. This checklist is the fast way to package a clean Facility file without back-and-forth.

If you want the big-picture cashflow map first, start here: Business Cashflow System (WCL + LOC + Invoice) (then come back and use this as your “documents hit list”).

Talk to a Broker Check Eligibility

1) The core document pack (what gets a file moving fast)

Think of the core pack as “proof your business is real and consistent”. Even in low doc situations, lenders still want enough clarity to understand revenue patterns and timing (your Cash Flow Assessment in plain English).

The fastest starting point is recent Bank Statements. Your job is to connect the statements to your Trading History and a conservative Turnover number (not your best month).

Core pack: bank statements + ID + entity details (ABN) + a 1-paragraph “use of funds”.
Label everything: “Statements Oct–Dec”, “Entity docs”, “Invoices sample”, etc.
Pre-answer the assessor: explain any large transfers/refunds before they ask.
Most common delays: unclear purpose, missing entity docs, mismatched names, unexplained lumps.
Quick fix: add 4–6 lines that explain “what happened” and “why it won’t repeat”.

Real-life example: A café owner submits statements but forgets to explain a one-off equipment refund. Adding a one-paragraph note avoids a “pause and query” and keeps the approval moving.

2) The facility-specific checklist (what changes by product)

After the core pack, the “extras” depend on what you’re applying for. The goal isn’t sending everything — it’s sending the right evidence for the right Business Loan type.

A clean file answers one question: “How does this facility get used, and how does it get repaid?” Use the table below as your pack list.

Facility type	Must-have documents	Helpful extras (if available)	Common timing trap
Business Line of Credit Guide: Business Line of Credit page	Short purpose statement + spend categories, core pack, and evidence of recurring outgoings.	Supplier schedule + existing repayments (so the requested Credit Limit makes sense).	Asking for a limit that doesn’t match real trading weeks.
Working Capital Guide: Working Capital Loans page	Core pack + a simple weekly summary showing the “gap” you’re smoothing.	Latest BAS (if you have it) + seasonality note.	Not explaining seasonality (busy weeks vs dead weeks).
Invoice Finance Guide: Invoice Finance page	Sample invoices + debtor list + proof of delivery/completion where relevant.	A short note on Trade Terms, payment behaviour and dispute rates.	Invoices that don’t match bank inflows (or unclear trading terms).

Real-life example: A trade business applies for a LOC and submits a random pile of PDFs. Re-sending the same docs in a labelled pack + a one-paragraph “use + repayment plan” turns a messy file into a clean approval.

3) Timing: what to send first (and what to send later)

Timing matters because assessors work in stages. If you dump everything at once, you can slow the file down — especially if the pack contains contradictions or outdated versions.

The clean approach is simple: send the core pack first, then add the facility extras once direction is confirmed. If the timeline is tight, aim for Pre-Approval first, then finalise for Settlement and Drawdown.

Stage 1: core pack + purpose statement.
Stage 2: facility-specific docs (table above) + clarifications requested.
Stage 3: settlement/drawdown docs once limits + structure are locked (your Loan Agreement stage).

Real-life example: A clinic applies for working capital during a slow month. They submit the core pack first, then add BAS and a short seasonal note only when asked — avoiding “too much, too early” confusion.

Summary

Low doc approvals move fastest when your documents are labelled, consistent, and matched to the facility type. Example: a café keeps the pack lean (core docs + purpose + one facility add-on) instead of dumping 30 PDFs and hoping for the best.

Keep your path to the money pages clean: Business Loans · Business Line of Credit · Working Capital Loans · Invoice Finance · Low Doc Asset Finance · Business Owners Finance Hub · Invoice Finance for Growing SMEs (hero guide).