What lenders ask tradies on the first call

Nobody enjoys a call where they feel like they are being quizzed, particularly in the ute between jobs with the phone on speaker. The good news is that the first call from a lender is rarely a grilling. It is mostly a handful of predictable questions, asked so that someone can work out which option might fit.

Knowing those questions in advance takes the edge off. Here is what usually gets asked, why, and what a good answer looks like.

What is the first call actually for?

The first call has one job: work out whether there is a sensible match, and what to gather next. It is not the final decision, and a good caller is trying to understand your situation more than catch you out.

In practice they are sorting you into a few buckets:

• Is the need short-term (bridging a gap) or longer-term (equipment, growth)?
• Is there property to use as security, or is this unsecured?
• Is the business trading steadily enough for the amount you want?
• Are there complications, such as ATO debt or past credit issues, that need a different approach?

Keep that in mind and the questions make sense.

What will they ask about the business?

Expect questions like these, roughly in this order.

Question	Why it is asked	A good answer sounds like
What do you do, and for whom?	Understand how you earn and how you are paid	“Residential electrical, mostly for two builders on progress claims, plus service work for homeowners.”
How long have you been trading?	Track record	“Four years on this ABN, ten years in the trade.”
What is your turnover roughly?	Sizing the facility	“About this much a year, a bit lumpy, with the best months in spring.”
Sole trader or company?	Structure and who is liable	“Company, I am the sole director.”
Do you have staff or subbies?	Wage and contractor commitments	“One apprentice and a casual labourer.”

Short answers that explain the shape of the business are better than long ones. If you get paid in lumps, say so, because it is normal and they have heard it before.

What will they ask about money and what it is for?

This part is where being specific pays off.

• What is the money for? Materials, wages, a machine, bridging a payment, tax. A clear answer is easier to match than a vague one.
• How will it be paid back? A specific invoice or contract, or extra work the equipment allows. Have one sentence ready.
• How much do you need, and for how long? A figure and a rough period. If you are not sure, say what the gap or purchase is and ask for suggestions.
• Is it urgent? Say what the real deadline is, because it affects what is suitable.

Our cash flow gap planner can help you pin down the number and the timing before the call. An illustrative example: a plumber who says “I need a short bridge of about six weeks until a builder’s claim lands, then I can clear it in one go” gives a lender far more to work with than “I need some money for cash flow”.

What will they ask about tax, BAS and the ATO?

Expect a direct question about lodgements and balances, because it affects what is possible.

1. Are your BAS and tax returns up to date?
2. Do you owe the ATO anything, and are you on a payment arrangement?
3. Do you employ anyone, and are wages, PAYG and super up to date?

Honest answers matter most here. An ATO balance is not necessarily a deal-breaker, because it is looked at case by case, but a surprise later usually is. If you are behind, say so and say what you plan to do. Our tax time survival guide covers how to get lodgements back on track.

What will they ask about credit and existing debts?

Common questions:

• What loans, leases and credit cards do you have, and roughly what are the repayments?
• Have you had any defaults, late payments or arrangements with creditors?
• Have you ever been bankrupt or part of a debt agreement?

You do not need to recite figures from memory, but it helps to have a short list. If there is a default, give a short, factual account: what happened, how long ago, and where it stands now. Reading your own file first makes this much easier, and our guide on how to read your credit file as a sole trader shows how.

Credit issues are considered case by case, and a clear, honest explanation often matters as much as the issue itself.

What will they ask about property and security?

One question changes the options available: do you own property, and is there equity in it? Property-secured options can allow larger amounts, and the answer decides which route is worth exploring.

If you own, expect questions about the type of property, roughly what it is worth and what is owing on it. If you do not, that is fine, because unsecured and cash flow options exist for trading businesses without property. Just say so plainly.

What should you have in your head or in front of you?

You do not need a folder of paperwork for the first call, but a small cheat sheet helps.

• Your ABN start date and how long you have been in the trade.
• Annual turnover, as an honest estimate.
• Who owes you money and roughly how much.
• Your main debts, leases and repayments.
• The amount you want, what it is for and how you will pay it back.
• Whether you own property.
• Whether BAS and returns are up to date.

Write them on a single page. Our loan readiness checklist is a handy way to run through the list and find what is missing.

What can you ask them in return?

A first call goes both ways, and the questions you ask tell you a lot about who you are dealing with. It is perfectly reasonable to ask:

• Will a credit check be run at this stage, and if so, when?
• Are my details going to be passed to other parties?
• Who will be my contact from here, and how will I reach them?
• What documents will you need, and by when?
• What happens next, and roughly how long does each step take?
• Are there fees at any stage, and when are they charged?

Straight answers to those questions are a good sign. Vague ones are worth noting.

Which answers cause trouble?

A few patterns make calls harder than they need to be.

• Confident guesses. Rounding turnover up to sound bigger creates a mismatch when statements arrive.
• Leaving things out. An ATO balance or default mentioned late damages trust more than the item itself.
• Vague purposes. “General cash flow” is harder to match than “wages and materials until a claim lands”.
• Over-promising. Saying a customer will pay on a date you cannot control gives a false picture.

When in doubt, say “I am not sure, I can check and come back to you.” That is a perfectly good answer.

Want the call to go well?

You now know what to expect, so the next step is easy. If you are ready, you can start with the quick form and a real person will take it from there.

Ready to have the conversation?

The call is a lot less daunting when you know the questions. Our enquiry takes about a minute, and there is no credit check when you enquire, so the first step does not touch your file. Your details stay with us, not with a stack of lenders competing to ring you, and a real person who understands trade businesses reads your situation before picking up the phone.

All we ask is that you fill the form in accurately, because the answers you give there shape the call and the match. Be straight about the awkward parts, and we will do our best to find an option that suits how your business really runs.

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