Definition
Your ABN, short for Australian Business Number, is an 11-digit number the Australian Business Register gives your business. A lender looks it up to check the business is real, see when it was registered and find out whether it is signed up for GST. The registration date matters early in any application, since plenty of loan products ask for a minimum period of trading counted from that date.
Any business asking for finance in Australia will have its number run through the Australian Business Register. You can do the same search yourself, free, at ABN Lookup.
What the lookup tells a lender
A single search reveals the legal entity name and structure, the date the number was issued, whether it is still active and whether GST registration is in place. The lender then checks those facts against your application form and bank statements. If something does not line up, for example the statements show a trading name the register does not, or the number was cancelled and a new one issued, expect extra questions and a slower answer.
Why the registration date counts
Lots of lenders insist on a minimum period of trading, and the date an ABN was issued is the quickest way for them to measure it. A cafe that has held its ABN for six years and banks takings every day will usually have more lenders to choose from than one that registered last spring. If your history is short, our guide to applying with a new ABN covers what strengthens the case.
Match your details everywhere
Your legal name, ABN and business address should read identically on invoices, bank accounts and the loan application. Moved from sole trader to a company structure? Say so at the start rather than leaving the lender to discover it.
Once everything lines up, make one enquiry and see what is available.
Common questions
Can I get a business loan with a new ABN?
Yes, with some lenders. A few will look at ABNs that are six months old or younger, normally with lower limits, property security or a strong personal credit file. Choice improves as trading history builds.
Does my ABN need to be registered for GST?
It is not always required. Still, being registered for GST and having BAS lodged gives a lender more proof of your turnover, which can work in your favour.
How do lenders check my ABN?
Through ABN Lookup, the free public register. It shows the entity's name, whether the ABN is active, when it was registered and whether GST registration is in place.
Sources and further reading