Had a great FY25? Relying on your most recent financials for your borrowing needs?

If you’ve just wrapped up a strong financial year, you might be thinking: now’s the perfect time to borrow. And you could be right — but your FY25 numbers will make all the difference in the eyes of the lender.

Most Lenders Still Look in the Rearview Mirror

Many lenders won’t automatically use your most recent financials when assessing your borrowing capacity. Instead, they often rely on your last lodged tax return — which might still be FY24. That means your stronger FY25 trading performance could be left out of the equation entirely.

This lag can be frustrating if:

• Your business rebounded or grew significantly in FY25
• You’ve invested in expansion or new revenue streams
• Your FY24 results don’t reflect your current earning capacity

Be Careful: Tax Optimisation ≠ Borrowing Maximisation

A lot of business owners aim to reduce taxable income — and who can blame them? But when it comes to borrowing, this strategy can backfire.

Lenders assess your ability to repay based on net profit, not just revenue. If your accountant has done a great job reducing your taxable income through deductions, depreciation, or trust distributions, your business might look less profitable than it actually is.

That could mean:

• Lower approved borrowing limits
• Higher interest rates
• Additional conditions on your loan

If you're planning to borrow in the next 6–12 months, it’s worth discussing this before your year-end tax planning is finalised. Sometimes, showing stronger profits (even if it means a higher tax bill) can open up better finance opportunities.

Get Proactive with an Accountant-Prepared Set of Financials

To leverage your FY25 performance, you may need to provide up-to-date financials prepared by your accountant.

In many cases, this includes:

• Management accounts for FY25
• A draft or final FY25 tax return (if available)
• A signed accountant’s declaration confirming your trading performance

Some lenders — particularly specialist or non-bank lenders — are willing to work with these more recent figures, helping you unlock better terms or a larger borrowing amount.

What You Can Do Right Now

1. Get your FY25 books in order early. Don’t wait until October.
2. Talk to your accountant about balancing tax strategy with borrowing plans.
3. Work with a finance broker who understands how to present recent financials to lenders strategically.

A Strong Year Should Work in Your Favour

If FY25 was a breakout year, make it count. With the right documentation and lender, you can turn strong financials into borrowing power — whether it’s for:

• Buying your business premises
• Investing in growth
• Refinancing old debt on better terms

Need help structuring your FY25 financials for borrowing?

At Causbrooks Finance, we help business owners and professionals secure the right finance — using the most up-to-date picture of your business performance.