BAS agents and business loans: what to prepare for a client's lender

Ask a lender what worries them most in a small business file, and an unexplained ATO balance will be near the top of the list. Ask what reassures them, and a clean lodgement history will be up there too. BAS agents sit right at that intersection. You see the client’s activity statements quarter by quarter and often manage their ATO relationship. That puts you in a strong position to make a loan application easier — or, if things are left as they are, harder.

What lenders read from activity statements

A run of BAS tells a lender three stories:

1. Turnover consistency. GST sales across quarters show whether trading is steady, seasonal or volatile.
2. Discipline. Lodging on time, every time, suggests a business that’s managed with care.
3. Tax health. Whether amounts reported are paid, or whether a balance is building.

When the facility is unsecured and sized on trading (usually somewhere between $5k and $500k), a run of BAS can matter as much as the annual accounts. Our page on BAS statements and cash flow lending explains the link in detail.

Step one: get lodgements current

The ATO’s message is consistent: lodge on time even if you can’t pay, because it keeps the client’s information current. Lenders feel the same way. If any activity statements are outstanding:

• Prioritise lodging them before the client applies
• Note any that were lodged late and why
• Confirm the current lodgement schedule (monthly or quarterly)

For reference, quarterly BAS is due 28 October, 28 February, 28 April and 28 July; monthly BAS is due on the 21st of the following month. Registered agents and online lodgers may get extra time for some quarters, but not quarter two.

Step two: download the ATO account position

From Online services for business, download:

• The activity statement account balance and transactions
• The income tax account, if you have access or the tax agent can provide it
• Any payment plan details, including the instalment amount and whether it’s being kept

The ATO lets you export transactions in CSV or HTML. Note the date of the download on the file — lenders want to know the position “as at” a specific day. See how lenders read an ATO statement of account.

Step three: explain anything unusual

Prepare a short factual note covering:

• Any quarter where turnover moved sharply — a large one-off project, a lost customer, a seasonal peak
• How any ATO balance arose and what’s changed since
• Any late lodgements and the reason
• Whether the client uses cash or accrual GST accounting, which affects how BAS turnover compares with bank deposits

Our page on explaining red flags to lenders has examples of factual wording.

What a BAS agent can and can’t provide

Can usually provide	Usually from the tax agent instead
BAS copies and lodgement history	Income tax returns and notices of assessment
Activity statement account statement	Annual financial statements
Payment plan details for activity statement debts	Advice on tax implications of financial advice
Turnover summary from BAS	Accountant’s letter confirming taxable income

The Tax Practitioners Board notes that registered BAS agents can provide some, not all, of the services a tax agent can. Coordinating with the client’s tax agent ensures the lender gets a complete, consistent file.

Payment plans and the loan conversation

If your client has an activity statement debt, consider whether a payment plan should be set up before they apply. Plans for $200,000 or less can be arranged online. A plan that’s being kept:

• Shows the client is engaging with the ATO, which matters for credit reporting rules on business tax debts
• Gives the lender a known monthly commitment to factor in
• Often makes a lender more comfortable than an open, unmanaged balance

Some clients then refinance the ATO balance with a loan. Our owners’ page on weighing a payment plan against a loan sets out that decision.

Reconciling BAS turnover with bank deposits

Lenders often compare total GST sales on BAS with deposits on bank statements. They rarely match exactly, and that’s fine — as long as someone explains the gap. Common reasons:

• GST itself. BAS G1 includes GST; some lenders compare against deposits, which also include GST, while others strip it out.
• Accounting basis. Accrual-basis BAS reports sales when invoiced; deposits arrive later.
• Non-sales deposits. Owner contributions, loan drawdowns, refunds and transfers between accounts inflate deposits.
• Multiple accounts. Sales may land in more than one account or a payment platform.

A short reconciliation table — BAS sales, adjustments, bank deposits — prepared by you heads off a question that would otherwise come back to you anyway.

A quick self-check

Our BAS lender-ready quiz asks eight questions about lodgements, ATO balance and turnover pattern and tells you how a lender is likely to read the history. It’s a handy thing to run with a client before they enquire.

Help your client take the next step

Once lodgements are current and the ATO position is documented, your client is in a far stronger spot. Start the enquiry with them and note that their BAS agent referred them. There’s no credit check when they enquire, their details are linked to a single suitable lender rather than spread across many, and a real specialist calls the client first. Ask them to be accurate about the ATO balance and any plan — the right match depends on it. Introduce your client.