If you’re self-employed or running a business, you’ve probably heard this before: “You’ll need two years of tax returns to apply for a loan.” But that old-school view of lending doesn’t quite hold up anymore and if you're relying on outdated info, you could be missing out on some seriously good finance opportunities.

Traditional Criteria Are on the Way Out

It used to be simple (and not in a good way): most lenders wanted two full years of trading history under your GST registered ABN, with tax returns to prove it. They’d average those figures out or worse, base their assessment on your lower year and that was that.

No flexibility. No consideration for recent growth or changes. And if you were newly self-employed or had a couple of unpredictable years? Good luck.

What’s Happening Now? A Shift Towards Real-World Lending

In recent years, lenders have started to recognise that business owners don’t always fit the mold and that’s a good thing for you. There’s now a much broader range of options and more tailored assessments based on how your business is actually structured.

Here are some of the key changes:

• Shorter trading history accepted:
  • Some lenders will work with just one full financial year.
  • A few will look at six months with solid BAS and bank statements.
  • And one will even lend from day one of self-employment (yes, really).
• Your structure matters:
  • Running through a company or trust? You may not need to show your personal income at all.
  • If you’re drawing a salary, pay slips and ATO summaries might be enough.
• Docs are more flexible:
  • Some lenders only need your latest year’s figures.
  • Others accept a mix of tax returns, BAS, or even real-time data from Xero or MYOB.
  • We're seeing more movement towards live, cashflow-based lending and not just historical figures.

Business & Commercial Lending: It’s Getting Smarter

Commercial finance is also evolving. It’s not just about assets and balance sheets anymore:

• Lease-backed lending is growing: if you’re buying a commercial property, some lenders will assess serviceability based solely on lease income.
• Bank statement-based loans: Perfect for businesses with strong cash flow but less-than-perfect tax returns.
• Unsecured business loans: These are fast and based on bank statement reviews but usually come with higher rates. We treat these as a short-term solution, not a forever fix.

Equipment Finance: More Choice, More Competition

There are now more equipment lenders in the market than ever before, and many are offering highly targeted products. Whether it’s a new truck, machinery, or fit-out, we’ve got lenders who will tailor finance based on:

• Asset type and age
• Location
• Your trading history and documentation

That variety means more opportunity to find the right structure, rate, and flexibility for your business needs.

The Bottom Line: Plan Early, Borrow Smarter

Here’s the golden rule: don’t wait until you’ve signed a contract to ask about finance.

We can often get you a better outcome (and avoid last-minute stress) if you engage with us and your accountant 6–12 months before you plan to borrow. This gives you time to fine-tune your financials, clean up your structure, and choose the right lender for your goals and not just whoever can scramble a deal together at the last second.

So if a purchase, upgrade, or refinance is on your radar in the next year, now’s the time to start the conversation.

EOFY might be behind us, but good planning never goes out of season.
If you'd like to understand how the current lending landscape applies to your situation, feel free to reach out, we’re always happy to talk through options.

The PT Finance Team