Business viability
The question is not only whether a liability can be paid today, but whether the company is viable after funding.
How we assess
A good funding decision starts with the whole business, not one number.
When applications open, the intended assessment will look at the business purpose, trading performance, liabilities, cash-flow cycle, management information, security and the proposed repayment strategy.
Information quality
Current, reconcilable information usually produces a better assessment than unsupported forecasts or approximate tax balances.
Downside discipline
A growth or R&D case should be tested against slower and lower outcomes, not only the best case.
Purpose and amount
The assessment begins with what the capital is for, why the amount is appropriate and what changes after the facility is advanced.
Trading and cash flow
Revenue, gross margin, operating profitability, bank activity, debtors, creditors and a forward cash-flow forecast help show whether the requirement is temporary or structural. business.gov.au explains how cash-flow forecasts can identify shortages and surpluses.
Tax debt profile
Where ATO liabilities are involved, the assessment should separate GST, PAYG withholding, company income tax, SGC, GIC/penalties and other balances, together with lodgment and payment-plan status.
R&D evidence
For a future R&D facility, expected R&D timing and evidence form part of the analysis, but do not replace normal underwriting of the company’s wider financial position.
Security and existing finance
Existing loans, asset finance, PPSR/security positions, guarantees and other creditor claims can affect both risk and the appropriate structure.
Repayment and downside
The proposed facility should have a credible repayment strategy and still be understandable under downside scenarios such as slower customer receipts, delayed projects or a lower/later R&D outcome.
Fair and transparent terms
Small-business financial contracts can be subject to unfair contract-term protections. ASIC emphasises transparency and whether terms create a significant imbalance. See ASIC’s current guidance.
Pre-launch information only. Nothing on this page is a credit offer, approval or commitment to provide a facility.