How tangled are your personal and business finances?

Why a lender cares how mixed your money is

When a lender assesses a small business, the bank statements are the evidence. Unsecured and cash-flow options — typically $5,000 to $500,000 — are sized on turnover and statements, so the lender needs to see which deposits are genuinely business income and which costs are genuinely business costs. When household spending runs through the business account, or supplier bills sit on personal cards, that picture blurs. The business can look weaker, or simply harder to read, than it really is.

It matters beyond lending, too. business.gov.au says partnerships, companies and trusts must have a separate bank account for tax purposes, and that if you mix transactions in one account you must clearly identify personal payments in your cash book. The ATO's general rule for deductions is that where an expense is for a mix of business and private use, only the business portion can be claimed. For companies, money paid to shareholders without the right paperwork can fall under Division 7A.

What each question is testing

• Where money lands and leaves (questions 1–3): the basic separation lenders look for first. See separating finances before you borrow.
• How you pay yourself and the ATO (questions 4–5): the habits that stop tangles growing back. See paying yourself as a sole trader or director.
• Debt that crosses the line (questions 6–8): personal credit funding the business, or the business funding you. See mixing personal and business debt.

What to do with your score

A high score means your statements should tell a clear story — you're ready to have a conversation about finance. A middling score usually means two or three habits to fix, often within a few months. A low score isn't a dead end: past messiness is considered case by case, and a specialist can tell you which fixes matter most for the lenders suited to you. If you'd like that conversation, start a 60-second enquiry — there's no credit check, and it goes to one person rather than a list of lenders.

Questions about the check

Why does mixing personal and business money matter?

It hides what the business really earns, complicates tax — the ATO says only the business portion of mixed-use costs can be claimed — and makes lenders cautious because they can't read your statements clearly.

Is a separate business bank account required?

business.gov.au says partnerships, companies and trusts must have a separate bank account for tax purposes. For sole traders it isn't required, but it's a good idea.

My score is low. Can I still get a business loan?

Possibly. Messy records slow things down and can narrow options, but they're considered case by case. Showing recent improvement helps a lot, and a specialist can tell you what matters most for your situation.

Is this check saved or sent anywhere?

No. It runs entirely in your browser and nothing is stored or sent. It only becomes an enquiry if you choose to fill in our form.