Factors to Consider When Applying For Tax Loans and Other Business Loans

Factors to Consider When Applying For Tax Loans and Other Business Loans

If you are applying for tax loans, how would you know if your estimated funding is aligned to the financial plan of your business? Or, do you have an appropriate financial plan to start with?

The problems with tax debt

Tax debt have serious implications on your business operations and cash flow. The Australian Tax Debt organization will report it to the credit bureaus and that could ruin your credit rating and make it difficult for you to get financing.

Every business, no matter how big or small needs a sound financial plan. Here are some factors to consider when getting the right tax loans and other business loans:

Outstanding debts

How much do you owe the government? If you’re having a hard time paying off your taxes, it means you’re having issues with your cash flow as well. Make sure that you get a loan amount higher than your current tax obligations so that you will still, have enough money to inject into your business operating expenses and other debts.

Investment requirements

When applying for tax loans and any other business loan for that matter, it is important to consider the following investment needs:

  • Start-up costs
  • Business needs list
  • Funds statement

How much money do you need to run your business in the direction that you want it to go?

Don’t trust everything you read on testimonials from people who claim they made an overnight success because of a specific business scheme. It is a good idea to learn more about your business financing needs from existing businesses and begin doing your own research and planning.

Every business has unique needs. Take time to explore different factors that will help you come up with the budget you need to get your business going.

While looking for these factors, also attempt to identify the potential financing sources which might help you, like ALC Commercial.


The startup cost and business needs all depend on the kind of business you will be in, the products and services you will provide and the people who will buy your products. Look into your fund statement; do you have what it takes to market your products or services or to even provide them? If the answer is in the negative, you may have to find some ways to ensure that you get the right cash flow so you can produce or provide your products and services and let the customers know about it.

Another important question is the product pricing. Make sure that the amount your customers pay for your product or service is higher than the production or service cost.

Using the answers you have provided to the questions above, write a paragraph describing your business concept.

Projections of cash flow

Evaluate your cash flow needs. If you have been running the business for a while, why not come up with the recent 3-5 years tax returns and financial statements, along with a credit report? It will give you a detailed idea on where your business stands financially.

Tax reports will show you the actual assets and liabilities, while credit report reveals your old and existing credits and your ability to pay them. Of course, credit report also tells you how well you are doing in the credit department. If you’re not paying your debts on time, or you’re incurring more debts than what you can actually manage.

 When making a cash flow projection, make sure to include the following:

  • Revenues and expenses per month
  • Assumptions
  • Income statement

Financial summary

If you want to have a concrete idea of your business needs and the viability of your plans, take a look at the following:

  • Income statements
  • Balance sheets
  • Tax returns for past three years

It is also advisable to look into your inventory list, contracts with your suppliers, employees and partners and even details of leases (office space, equipment, etc.) and other financial commitments.

Do you want to learn more about tax loans? What about business loan options to finance your day to day business operations? Call ALC Commercial today to get more ideas on how to finance your business properly. Dial 1300 886 996 or fill out our form today!

For more information on business loans, commercial finance, debt consolidation, bad credit business loans and low-doc business loans talk to our experienced and understanding loan specialists to see how our business loans can support your business goals.

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