Quick answer
A lending proposal for a messy file is a one-page summary that puts the request, the purpose, the problem, the fix, the security and the exit in front of the lender before they read the credit report. It should state the amount and term, explain each issue in a few factual sentences, show what has changed, list the evidence attached and describe how the loan will be repaid. Keep it short, specific and consistent with your documents.
Key points
- Lead with the request and purpose; lenders want to know what they're being asked first.
- Explain each problem in three to five factual sentences, then show what's changed.
- Every figure must match the bank statements, ATO statement and credit reports.
- End with the exit: how and when the loan is repaid.
When a file is clean, the documents speak for themselves. When it isn’t, the documents speak first and the lender forms a view before you’ve said a word: a default here, a tax balance there, a gap in lodgements. A one-page proposal changes the order. It tells the lender what you need, what went wrong, what you’ve done about it and how the loan ends, so that by the time they open the credit report they already know what they’re looking at.
This guide explains each part of the proposal and finishes with a template you can adapt.
Why does a one-page proposal help a difficult file?
Credit assessors work through a lot of applications. On a messy file, their first job is to work out the story: is this a business in trouble, or a sound business with a bad patch behind it? Without a proposal, they piece it together from statements and reports, and the most visible problems dominate. With one, you frame the facts accurately and point to the evidence.
It also helps you. Writing the proposal forces you to decide the amount, the purpose and the exit before you apply. That clarity is half the work of a successful application.
business.gov.au suggests organising your materials into a professional-looking report that gives lenders an overview of your finances. For a specialist loan, a single page plus attachments does that job.
What goes in the proposal?
Six parts, in this order.
1. The request
One or two sentences: the amount, the type of loan, the term you’re asking for and the security.
“We’re seeking $240,000 for 12 months, secured by a second mortgage over the director’s home in Ballarat.”
2. The purpose
What the money will pay for, with figures that add up to the request. A short table works well.
| Purpose | Amount |
|---|---|
| Pay out ATO debt (income tax and BAS) | $162,000 |
| Pay out online business loan | $48,000 |
| Working capital buffer | $24,000 |
| Estimated costs | $6,000 |
| Total | $240,000 |
Lenders like money going directly to creditors at settlement. Say so where it applies.
3. The business, in brief
Three or four sentences: what the business does, how long it has traded, roughly how many staff, and its current trading in plain terms. Avoid adjectives. “Monthly deposits have averaged about $180,000 over the past six months” beats “the business is performing strongly”.
4. What went wrong, and what’s changed
This is the heart of a messy-file proposal. For each issue, write three to five sentences:
- What it is: the listing, debt or gap.
- Why it happened: the event behind it.
- What you’ve done: paid, settled, lodged, arranged.
- What’s different now: the change that stops it recurring.
“In 2025 a major customer entered administration owing us about $95,000. We fell behind on BAS and income tax while replacing that revenue, and the ATO balance grew. All outstanding BAS has now been lodged, the debt figure is confirmed, and we’ve moved to monthly BAS with a separate tax account. This loan pays the ATO in full at settlement.”
Do this for each material issue: tax debt, defaults, judgments, a loss year, a previous bank decline. Keep the tone factual and calm. Lenders read hundreds of these, and the ones that inspire confidence never blame, exaggerate or leave things out.
According to the OAIC, defaults and court judgments stay on a consumer credit report for five years. That means the lender will see them regardless; your explanation determines how they’re read.
5. Security and supporting evidence
What the lender can rely on, and what’s attached:
- property details, value estimate and existing mortgage balance;
- guarantor details, if any;
- business bank statements, ATO statement, lodgement confirmations;
- payout letters for debts being cleared;
- an accountant’s letter, if you have one (see what an accountant’s letter should say).
6. The exit
How and when the loan will be repaid, with evidence. Name the type (refinance, sale or trading), the target date and the steps in between.
“Exit: refinance both mortgages with a bank in month 11. By then, two years of returns will be lodged, the ATO debt cleared and 12 months of repayments made on time. Plan B: sale of an investment unit held by the director.”
If you haven’t settled on an exit yet, our exit plan builder and guide to building an exit plan will help.
Not sure your proposal tells the right story? Ask a specialist to read it, with no credit check to enquire.
What should you leave out?
- Long histories. The lender needs the event, not the saga.
- Blame. Even when someone else caused the problem, focus on what you did next.
- Projections you can’t support. If you include a forecast, base it on actual deposits and label it clearly.
- Adjectives. “Robust”, “strong”, “exciting” add nothing; numbers do.
- Anything inconsistent. If the proposal says the ATO debt is $162,000, the ATO statement must say the same.
How do you keep the numbers consistent?
Inconsistency is the fastest way to lose a lender’s confidence on a difficult file. Before sending:
- Check every figure in the proposal against its source document.
- Use the same dates throughout: “as at 30 September 2026” on every balance.
- Make sure the purpose table adds up to the request.
- Confirm the existing debts listed match those visible in the bank statements.
- Ask someone else to read it for clarity.
A one-page template
Copy this structure and fill in your own details. Remove any section that doesn’t apply.
Business loan proposal — [Business name], ABN [number] — as at [date]
Request: [Amount] for [term], [secured by / unsecured], to [purpose in one line].
Purpose:
| Item | Amount |
|---|---|
| [Payee / use] | $[x] |
| [Payee / use] | $[x] |
| Total | $[x] |
The business: [What it does], trading since [year], [number] staff. Average monthly deposits over the last [six] months: about $[x]. [One sentence on current trading.]
Issues and what’s changed:
- [Issue 1]: [What it is.] [Why it happened.] [What’s been done.] [What’s different now.]
- [Issue 2]: [Same four parts.]
Security and evidence attached: [Property address, estimated value, existing loan balance.] [Guarantor, if any.] Attached: [bank statements], [ATO statement], [lodgement confirmations], [payout letters], [accountant’s letter].
Exit: [Refinance / sale / trading] by [month and year]. Steps: [two or three milestones]. Plan B: [alternative].
Contact: [Name, role, phone].
A note on tone
Write as if you’re explaining the situation to a sensible friend who happens to work in credit. Plain words, short sentences, numbers where they matter. Lenders aren’t looking for a perfect business; they’re looking for an owner who understands what happened and has a credible plan. The proposal is where you show that.
Should the proposal mention the bank’s decline?
If there was one recently, yes, in a single line. The lender will likely see the enquiry on your credit file, and mentioning it first avoids an awkward question. Say which lender, roughly when, the reason as you understand it, and why this application doesn’t rely on the same weak point. Then move on. The proposal is about the plan, not the rejection.
Who else should see the proposal?
Anyone whose support the loan relies on. A guarantor should read it, so they understand what they’re backing. Your accountant should check it, so the figures match what they’ll confirm. And keep a copy yourself; when you come back to refinance, it’s the starting point for showing what’s changed.
Ready to put your proposal in front of the right lender?
A clear page makes a difficult file far easier to fund, and pairing it with the right route makes it easier still. Enquiring with us doesn’t involve a credit check, your file isn’t passed around a list of lenders, and a specialist reads it and calls you to sharpen the plan. Please be as accurate on the form as you are in the proposal, especially the amount, purpose and any property, so we can match you correctly from the start. See if you qualify.
Frequently asked questions
Do lenders actually read a cover note or proposal?
Specialist lenders and credit assessors often do, especially on complex files. A clear page saves them time and answers questions before they're asked, which can speed up the assessment.
How long should a lending proposal be?
One page for the summary, with documents attached. If a section needs more detail, such as a schedule of debts, put it in an appendix rather than making the summary longer.
Should I mention problems the lender might not find?
Mention anything material. Lenders find most things in credit reports, bank statements and ATO records, and an omission that surfaces later damages trust far more than the issue itself.
Can my accountant write the proposal?
Your accountant can help, and a supporting letter from them adds weight. But the proposal should sound like you: the owner who understands the business and the plan.
Do I need a full business plan as well?
For most specialist loans, a one-page proposal plus documents is enough. business.gov.au notes lenders usually want to see a business plan; for larger or growth-focused requests, a short plan helps.