Business finance has more moving parts than home lending — more lender types, more structures, more room for a good broker to add value (and for a bad fit to cost you). This guide covers what WA SME owners actually need to know.
What are the main types of business finance?
| Need | Product | Typical terms |
|---|---|---|
| Vehicles & equipment | Chattel mortgage | 1–7 years, approval in 24–48h |
| Business premises | Commercial property loan | 70–80% LVR, 15–25 years |
| Cash-flow gaps | Overdraft / line of credit | Revolving, pay for what you use |
| Slow-paying customers | Invoice finance | Advance ~80% of invoices immediately |
| Growth & working capital | Unsecured business loan | Fast, smaller amounts, higher rates |
Why do banks say no to good businesses?
Usually policy, not merit: not enough years trading, an industry on their caution list, income that looks lumpy on paper, or a director's personal credit blip. Specialist commercial funders exist precisely for those cases — often at surprisingly competitive terms. A decline from one lender is information about that lender's policy, not a verdict on your business.
This is the single biggest reason SMEs use brokers: knowing which of the 25+ lenders actually wants your industry, your deal size and your paperwork style before applying.
Finance or pay cash for equipment?
Financing usually wins for three reasons:
- Cash stays working in the business, where its return typically beats the interest cost.
- The asset pays for itself — a machine earning from week one covers its own repayments.
- Tax treatment — interest and depreciation on business assets are generally deductible, and instant asset write-off rules (which change year to year) can accelerate the benefit. Your accountant confirms the numbers; we structure the finance to fit.
A balloon payment — a lump sum left at the end — lowers monthly repayments and suits assets you'll sell or upgrade at term's end. Just diarise it; balloons that "sneak up" are the most common equipment-finance complaint we fix.
How does buying your premises compare to renting?
Owning converts rent into loan repayments that build equity, protects you from lease renewals, and (bought through the right structure — often an SMSF, with advice) can be very tax-effective. Lenders fund 70–80% of value, so a $1M premises needs roughly $200,000–$300,000 of deposit or equity.
The trade-off is capital tied up and less flexibility to relocate. For established businesses planning to stay put five-plus years, the maths frequently favours buying — we can model both against your actual numbers.
What paperwork will I need?
Full-doc: last two years' financials and tax returns, current ATO portal statements, bank statements. Best rates.
Low-doc: BAS statements, business bank statements, or an accountant's declaration. Slightly higher rates, dramatically less friction — built for busy trades and services businesses whose books live with their accountant.
Either way, a broker packages it once and presents it properly — most "slow approvals" are really just applications lenders had to keep querying.
General information only — not tax or financial advice. TAG Financial Group arranges credit; your accountant advises on structure and tax. Verified 19 July 2026.