Safeguarding your business finances: managing your business loan repayments effectively

With banks tightening of lending standards in today’s economic climate, are you looking for ways to
better manage your existing business loan repayments and business financing?
Securing a business loan empowers businesses to grow, hire staff, replace equipment, and expand
into new markets. While securing a business loan is a significant step towards growth, managing
your loan repayments effectively is essential to avoid financial pitfalls.
In this article, we share actionable tips and strategies to ensure that your business loans and
monthly expenses are managed in a cost-effective and efficient way.

1. Analyse your cash flow

When entering a commercial finance, business finance, or vehicle finance agreement, a crucial step
is to develop a comprehensive plan. Set aside money for monthly repayments and prioritise it in
your budget above less critical expenses. Unnecessary spending can lead to budget overruns,
potentially leaving you short of cash for essential bills and expenses. Keep a close eye on your typical
monthly transactions and expenses.
Additionally, to ensure a healthy cash flow, you could incorporate a profit and loss forecast to
project income, costs, and profits over the loan term. This forward-looking approach ensures your
business can confidently meet financial obligations, including loan repayments, throughout the loan
term, enhancing long-term financial stability.

2. Streamline your repayment schedules for efficiency

When managing business loans and monthly expenses, streamlining your repayment schedules can
lead to significant cost savings. Consider asking your broker to align the repayment dates with your
cash flow cycles, which can reduce financial strain.
Efficiency in your repayment strategy can help you make the most of your business financing while
ensuring your monthly expenses remain manageable.

3. Adjust your repayments based on actual revenue

Running a business can sometimes mean fluctuations in your incoming revenue, influenced by
various factors such as changes in market demand, economic conditions, competition, and internal
business operations.
Regularly review your cash flow to accommodate these fluctuations in revenue and unexpected
expenses. In slower months, you may want to consider reducing business expenses temporarily to
ensure you can make loan payments, or top-up on your repayments. When your revenue exceeds
expectations, it could be worthwhile allocating the surplus to loan repayments or reserve it for
future obligations.

4. Track your spending

Good record-keeping is another effective way to stay on top of your finances and repayments. It
enables you to make easy adjustments based your loan repayment strategy and priorities. You can
maintain separate business accounts, organise receipts, use spreadsheets or accounting software,
and consider working with an accountant if needed.
A valuable way to help you prioritise your records could be implementing a color-coded system:

  • Non-negotiable payments (red): These are top-priority expenses, such as loan repayments and
    staff salaries. Allocate funds for them in advance to avoid financial strain.
  • High-priority payments (yellow): These crucial but flexible expenses, like business travel and
    client meetings, should follow non-negotiable payments in your budget.
  • Lower-priority payments (green): Adjust expenses such as team outings and training, as they
    are less critical.

5. Maintain open communication with your broker

Building a lasting relationship with your broker is essential in the world of business lending. To foster
a strong, long-term partnership, be forthright, especially when dealing with streamline or no doc
Typically, when a small business owner or a self-employed individual needs access to finance, but
lacks the required documentation, then streamline or no doc business loans are ideal to gain access
to needed capital. These loans offer similar terms to regular business loans, but don´t require the
same number of financial statements, documents or other paperwork traditional loans require.
While low doc or no doc business loans may appear tempting to avoid mountains of paperwork, it’s
still important to thoroughly crunch the numbers, ensuring that you can comfortably meet your
repayment obligations. Additionally, conducting your own research to gather insights from other
brokers or lenders on alternative loan options is a wise step to make informed financial decisions.

6. Secure business finance wisely

Finally, when seeking business finance via any broker, ensure you secure a sound and beneficial
arrangement. Begin by defining your needs clearly and assessing your budget to determine what you
can comfortably allocate.
Next, shop around for multiple options, understand the terms and conditions, and consider potential
tax implications. Plan for contingencies and align the financing term with the expected lifespan of
the vehicle or equipment. Seek professional advice if needed. For example, with Metro, they can
easily tailor finance terms based on your needs, whether you are buying brand new or replacing an
existing asset.


Metro is an independent Australian non-bank lender specialising in auto and equipment finance for
businesses, car finance for consumers, and novated leasing. Excelling in customer service and offering highly
competitive rates, Metro ( is one of Australia’s most popular non-bank commercial asset
finance lenders. Feel free to speak with a Metro broker today to explore the available options for your