Quick answer
Before borrowing, ask your accountant which entity should borrow, whether the interest is likely to be deductible for your structure, what records they need, whether any director loans or Division 7A issues need fixing, how the loan affects your tax and BAS cash flow, and whether your financial statements are ready for a lender. Bring your debt list, recent statements and the loan's purpose.
Key points
- Your accountant can confirm which entity should borrow and how the loan is likely to be treated for tax.
- Fix director loans, Division 7A issues and overdue lodgements before a lender asks.
- Bring a debt list, recent statements and a clear purpose to the meeting.
- A lender can work alongside your accountant — ask them to talk.
Most business owners only see their accountant once a year, around tax time, when the conversation is about what already happened. The most valuable conversation you can have is about what’s about to happen — like taking on a business loan.
A 30-minute meeting before you borrow can shape which entity signs the loan, how the interest is treated, which records you’ll need, and whether anything in your books will raise a lender’s eyebrows. This guide gives you the questions and the list of things to bring.
Why talk to your accountant before, not after?
Because the decisions that matter most are made at the start:
- who borrows — you, your company, your trust
- what secures it — the business, your home, another property, nothing
- how the money flows — into which account, for which purpose
- what’s recorded — and how
Once the loan is signed and the money spent, those choices are baked in. Your accountant can often suggest a small change upfront that saves a lot of untangling later.
The ten questions
1. Which entity should borrow?
If you trade through a company or trust, the business-purpose loan usually belongs in that entity’s name. If you’re a sole trader, it’s you. But there are situations — for example, where property is owned in a different name — where the right answer isn’t obvious. Ask directly.
2. Is the interest likely to be deductible for my structure?
The ATO’s general guidance is that an expense “must have been for your business”, and that for mixed expenses “you can only claim the portion that is used for your business”. Your accountant can apply that to your actual loan and purpose. Our page on whether business loan interest is tax deductible has more of the background.
3. Does it matter that the loan is secured by my home?
Owners often worry that a home-secured business loan will be treated as a home loan. In general, how the money is used tends to matter more than what secures it, but it’s exactly the kind of question your accountant should confirm for your circumstances.
4. Are my director loan accounts in order?
If you’ve put money into your company, or taken money out, your accountant should check the director’s loan account is recorded correctly. Money the company has paid for you personally may be caught by Division 7A, which the ATO says can treat such payments as dividends unless they’re “repaid or converted into a Division 7A complying loan by the company’s lodgment day”. Lenders notice these balances. See borrowing from your company and lending money to your company.
5. Are my lodgements up to date?
Overdue BAS or tax returns are one of the most common hold-ups in a loan application. If you’re behind, ask your accountant to prioritise catching up. The ATO says that if you can’t lodge on time, you should “phone us before the due date so we can work together to reduce the risk of a penalty”.
6. What will the lender want to see, and is it ready?
Depending on the loan, lenders may ask for business bank statements, BAS, tax returns, financial statements, an accountant’s letter or cash-flow forecasts. business.gov.au’s loan guide lists items such as “financial reports, including cash flow statements (if available)” and “your personal financial information”. Ask your accountant which of these are current.
7. How will repayments affect my tax and BAS cash flow?
A new loan repayment sits alongside GST, PAYG instalments and income tax. Ask your accountant to map the next twelve months: when tax is due, when repayments fall, and whether any months look tight.
8. Is there anything personal that’s funding the business?
Personal credit cards, a personal loan or a home loan redraw that funded business costs should be on the table. Your accountant can advise how they’ve been treated, and whether it makes sense to move them into a business-purpose loan. See mixing personal and business debt.
9. Would a different structure suit me better in future?
If you’re a sole trader thinking about a company, or a company thinking about a different setup, raise it — but don’t let it stall a genuine need. Lenders can work with the structure you have now.
10. Will you talk to the lender if needed?
Most accountants are happy to speak with a lender, with your permission. It often answers questions faster than a chain of emails.
What should you bring to the meeting?
| Bring | Why |
|---|---|
| The loan’s purpose, with quotes | So the advice fits the real use of the money |
| A list of every debt, personal and business | To spot mixing and plan the structure |
| The last few months of bank statements | To see how money actually flows |
| Your latest BAS and any ATO statements | To check lodgements and balances |
| Property details if you might use security | Ownership affects who signs |
| Questions you’ve been meaning to ask | This is your meeting |
How does this fit with talking to a lender?
You don’t need to finish with your accountant before you enquire. Many owners do both at once: they send a quick enquiry to see what’s realistic, then take the options to their accountant to check the fit. A good lending specialist will happily work alongside your accountant rather than around them.
The borrow personally or through the business tool is another useful thing to bring along. It lays out, side by side, how borrowing personally compares with borrowing through the business on structure, security, guarantees, records and what lenders look at.
An illustrative example
A physiotherapist runs her clinic through a company and owns her home personally. She wants $150,000 to open a second site. Before applying, she meets her accountant with the fit-out quotes and her debt list. The accountant confirms the company should borrow, finds that $12,000 of personal expenses had been paid by the company during the year and puts a complying loan agreement in place, and brings the latest BAS up to date. When she applies, the lender’s questions are answered in one email.
What if you don’t have an accountant?
Plenty of sole traders do their own books and lodge through a tax agent only at year-end. That’s fine for many loans, particularly smaller unsecured ones based on bank statements. But if you’re borrowing a larger amount, using property, or trading through a company or trust, it’s worth finding a registered tax agent or accountant to review your position. The cost of one meeting is small next to the cost of a poorly structured loan.
Questions your accountant might ask you
A good accountant will also have questions for you. Expect to be asked:
- What exactly is the money for, and what will it earn or save the business?
- What happens to the business if it takes longer than you expect to pay back?
- Are there any debts or ATO balances we don’t know about?
- Is any of this money for personal use?
- What are you comfortable putting at risk — and what isn’t on the table, such as the family home?
Answering these honestly helps your accountant give you advice that fits, and it’s great preparation for the call with a lending specialist.
What should you avoid?
- Don’t let the accountant’s diary delay an urgent need. Start the lending conversation in parallel.
- Don’t guess at tax outcomes. If it matters to the decision, get it confirmed.
- Don’t hide personal debts. They’ll show up anyway, and your accountant needs the full picture to help.
- Don’t sign guarantees or mortgages without understanding them. Your accountant covers the numbers; a lawyer covers the documents.
Ready to borrow with your accountant on side?
The best business loans are the ones where the owner, the accountant and the lender all understand the plan. Your first step with us takes about 60 seconds and involves no credit check. One specialist handles your enquiry — no spraying it around a list of lenders — and they’ll call you, happy to loop in your accountant. Please be accurate on the form about your structure and what the money is for; that’s how we match the right option the first time.
Frequently asked questions
Do I need an accountant to get a business loan?
Not always. Many unsecured options rely on bank statements and BAS. But for larger loans, company or trust structures, or anything involving property, your accountant's input is valuable and sometimes required.
What is an accountant's letter for a loan?
Some lenders accept a letter from your accountant confirming aspects of your business or income, particularly where tax returns aren't yet lodged. The lender will specify what it needs.
Should the loan be in my name or my company's name?
It depends on your structure, the purpose and the tax position. Your accountant is the right person to advise. As a general rule, borrowing for a company's purpose in the company's name keeps records cleaner.
Will my accountant talk to the lender?
Most are happy to, with your permission. It often speeds things up, because questions about financials can be answered directly.
How long before applying should I see my accountant?
Ideally a few weeks, so there's time to fix anything like overdue lodgements or director loan paperwork. But don't delay a genuine need — you can enquire with us at the same time.