Top 5 Loan Myths Debunked

Confused by all the loan advice out there? You’re not alone. Let’s set the record straight.

Why This Matters

Whether you’re applying for a vehicle loan, equipment finance, or working capital, there’s no shortage of “advice” online. Unfortunately, a lot of it is outdated, misleading—or just plain wrong.

At Thrift Capital, we help business owners and entrepreneurs navigate the finance world with confidence. So today, we’re clearing up five of the most common myths we hear every day—and giving you the facts to make smarter decisions.

Myth 1: “You need perfect credit to get approved.”

Truth: A less-than-perfect score doesn’t disqualify you.

While credit history matters—especially for unsecured loans—it’s only one part of the equation. Lenders also consider:

• Cash flow or bank statements

• Business stability

• Loan purpose and security

• Industry experience

Plus, we work with specialist lenders who are open to low-doc and new-ABN applicants, even with limited credit history.

Myth 2: “I can only get a loan if my business has been trading for over 2 years.”

Truth: New businesses can get finance too.

Many think they need years of tax returns to qualify. But lenders now offer finance options for:

• Startups

• Sole traders with new ABNs

• Side hustlers going full-time

If you have solid industry experience, a clear loan purpose, or asset security (like a vehicle or machine), you can likely get approved.

Myth 3: “All lenders are the same—just compare rates.”

Truth: Not all loans—or lenders—are created equal.

Rates are important, yes. But so is:

• The speed of approval

• Flexibility of repayments

• Ease of document requirements

• Pre-approval conditions

• Balloon options or seasonal structures

Some lenders are better suited for your industry, cash flow, or equipment type. That’s why working with a broker makes a real difference.

Myth 4: “Applying for finance will hurt my credit score.”

Truth: Not always—and not if you do it properly.

Multiple applications with the wrong lenders in a short time can hurt your score. But when you work with a broker:

• Your application is strategically placed with the right lender

• We often start with a soft credit check or pre-assessment

• We avoid unnecessary rejections

Bottom line: one well-placed application is far better than going it alone and hoping for the best.

Myth 5: “If I got rejected before, I won’t get approved now.”

Truth: Rejection isn’t final—and it’s often fixable.

Many applicants get declined simply because they:

• Applied with the wrong lender

• Had missing documents

• Didn’t structure the application clearly

We’ve helped dozens of clients who were previously rejected get approved within days—just by matching them with the right lender and repackaging the deal.

Final Thought: Know the Facts Before You Apply

Finance doesn’t need to be complicated, but it does require clarity.

By knowing what lenders actually look for—and avoiding the common myths—you can make better decisions, access better deals, and save time (and money) in the process.

Need Help Navigating Your Options?

 Talk to a Thrift Capital broker today.

Free Pre-Approval Checklist for Business Loans Over $300K

Know what you need before you apply—and get approved faster. 

Applying for a business loan over $300,000? Lenders typically require more detailed documentation at this level. That’s why we’ve created this free Pre-Approval Checklist—to help you prepare, avoid delays, and give your application the best chance of success. 

Whether you’re a sole trader, company director, or applying through a trust, this checklist covers the documents that matter most. 

Note: For business loans up to $250,000, approvals can often be secured with just basic identification and minimal paperwork. Speak with a Thrift Capital broker to determine the right path for your business. 

What’s Inside the Checklist?

1. Personal Identification (ID) Documents 
   Confirm the identity of the director or business owner: 

   a.) Director’s Driver’s licence or Passport (front & back) 
   b.) Medicare card 

2. Business Information 
   Provide evidence of your business registration and trading status: 
   a.) ABN/ACN 
   b.) Business registration certificate 

3. Financials 
   Help lenders assess your business performance and serviceability: 
   a.) Business bank statements – last 6 months 
   b.) Profit and Loss (Dated from July 2024-June 2025) 
   c.) Balance Sheet (Dated from July 2024-June 2025) 
   d.) Accountant Prepared Financial Statements for Previous FY (2023-24) 
   e.) Most Recent FY’s Individual Tax Return 
   f.) 12-month ATO Portals – ITA & ICA  
   g.) Business Activity Statements (BAS) – last 2 quarters 

   NOTE: We may only need a handful of the above documents to get your business approved. Speak to your Thrift Capital Finance Broker to find out what documents you need. 

4. Loan Purpose Documents(Recommended but not always required) 
   These are useful when applying for asset, equipment, or vehicle finance:
   a.) Invoice or quote for equipment purchase 
   b.) Lease agreement (for property-related loans) 
   c.) Vehicle details (make, model, year, VIN) for car/truck loans 

5. Other Supporting Documents (if applicable) 
   These documents can enhance your application and speed up processing: 
   a.) Trust deed (if applying through a trust) 
   b.) Existing loan contracts (that can be used as a reference) 
   c.) Rates Notice or other document to verify property ownership 

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Need Help Getting Started? 

Fill out the quick form below and we’ll guide you through the next steps. No pressure—just practical, expert support to help get your business finance-ready. 

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Why It Matters 

Being well-prepared can mean the difference between: 

• Waiting two weeks vs. getting approved in 24 hours 

• Rejection due to missing documents vs. smooth, fast-track success 

At Thrift Capital, we help you cut through the paperwork and match you with the right lender—so you can secure funding faster, simpler, and smarter.