Need a loan for your health or beauty business?

You’ll need to nail the 5Cs.

Whether you are buying or expanding a new business or are looking to save money or negotiate better terms and conditions on your current business finance arrangements, the key to getting a better deal is as simple as, thinking like a bank! 

Banks lend money on a very basic premise – they want to be repaid and they want a return on their investment. Easy right? Well, theoretically yes, however the criteria the bank will use to assess your business credit risk can be extensive.

More importantly, unlike the relative standard terms of a home loan, the bank will allocate your business case with a risk grade which directly impacts the interest rate, fees, terms and conditions of your finance and, ultimately the profitability of your business. The higher the bank perceives your risk, the higher the cost of your loan and vice-versa.

Traditionally banks use loan assessment criteria known as the 5Cs to determine your ability to repay the loan:

While the level of detail required for a successful business loan application may seem overwhelming at first, remember you don’t need to go it alone. 

An experienced business finance broker will be in the best position to help you co-ordinate the information and thoroughly package your loan application to meet the lender’s requirements. This will reduce the administrative burden, save you time and unnecessary stress, and increase the likelihood of a better finance package all-round.


THE FINEPRINT: The information provided on this site is on the understanding that it is for illustrative and discussion purposes only. While all care and attention are taken in its preparation any party seeking to rely on its content or otherwise should make their own enquiries and research to ensure its relevance to your specific personal and business requirements and circumstances.

Green Finance Group Pty Ltd ACN 145 035 221 is authorised under LMG Broker Services Pty Ltd ACN 632 405 504 Australian Credit Licence 517192.

Meet the Author

"While my extensive industry experience covers all areas of banking, loans and leasing – commercial, equipment and residential – my business finance specialties are the broader hospitality, accommodation and childcare industries."

Daniel Green

  • Commercial Finance, Equipment Finance, Home Finance

Fortitude Valley, Brisbane

Australia's leading hospitality, accommodation and childcare finance specialist and winner of Australian Broker of the Year 2022.

Prior to establishing GFG in 2010, I occupied senior management roles in some of Australia's leading financial institutions including Commonwealth Bank of Australia, Suncorp, Bankwest and Westpac.