EOFY, it’s that time of year when business owners are knee-deep in numbers, receipts, and last-minute calls to the accountant.
While it’s easy to get caught up in tax returns and compliance, the end of the financial year is also the perfect opportunity to give your business finances a health check, especially when it comes to your loans.
If you’ve got a business loan, line of credit, or even just a nagging feeling that your repayments could be working harder for you, EOFY is your chance to hit refresh.
Let’s talk about why it’s worth reviewing your business finance setup now and how a few small changes could set you up for a stronger (and more profitable) new year.
Why bother with a loan review at EOFY?
Let’s be honest, loan documents aren’t exactly thrilling reading. But what is exciting? Finding out you could be saving hundreds (or even thousands) a year in repayments.
Here’s why EOFY is the best time to take a closer look at your business loans:
- You’ve got 12 months of data and insights at your fingertips
- You’re probably already speaking with your accountant or bookkeeper
- Lenders often roll out EOFY offers or incentives
- It’s the ideal time to reset for the new financial year
Think of it like a financial tune-up. Your business has likely evolved over the past year, maybe it’s grown, changed direction, or hit new milestones. Your finance should reflect that.
Signs your current finance might be holding you back
We see it all the time: a business takes out a loan during a crunch period, and three years later, they’re still repaying it on the same terms, even though the business (and the market) has changed.
Here are some red flags that it’s time for a loan review:
- You’re still on the same high interest rate from when you first started out
- You’ve got multiple loans and repayments that are hard to juggle
- Your cash flow is tighter than it needs to be
- You’re not even sure what your loan terms actually are anymore
- You feel like your finance setup is holding your growth back
If any of these ring true, it might be time for a change.
What to look at during a loan review
When we review business loans for clients, we don’t just focus on the numbers; we look at the whole picture. Here’s what you should be asking:
1. What’s my current interest rate, and could it be better?
Even a 0.5% difference can add up quickly, especially on larger balances.
2. Does the loan structure still make sense?
Are you stuck in a short-term facility for a long-term expense? Or paying interest-only when principal-and-interest could be smarter?
3. Is my cash flow being squeezed?
Would more flexible repayments or a longer loan term ease the pressure?
4. Am I paying unnecessary fees?
Think of monthly account-keeping fees, redraw restrictions, or early exit charges.
5. Is this finance helping or hindering my business goals?
Your finance should support your growth, not limit it.
Finance options to consider after EOFY
If your loan review reveals some room for improvement (and it often does), here are a few finance options that could help:
- Refinancing to a lower rate or better terms
- Debt consolidation to combine multiple loans into one manageable repayment
- Line of credit to give you cash flow flexibility without needing to reapply each time
- Equipment finance to help with upgrades without touching your working capital
- Unsecured business loan for short-term opportunities like marketing, staffing, or stock
And no, you don’t have to figure it all out yourself. A broker (like us!) can help compare lenders and make sense of the fine print.
Don’t let your old loans slow you down
Your business changes, so your finance should too. EOFY is the perfect excuse to take a step back and ask: Is my money working as hard as it could be?
A quick loan review could mean lower repayments, better cash flow, and more flexibility to grow your business in FY25.
Need help reviewing your business loans?
We help Australian business owners simplify, refinance, and restructure their finance so they can move forward with confidence. Whether you’re unsure where to start or ready to take action, we’re here to make it simple.
*This blog is intended for general informational purposes only. For personalised advice tailored to your unique financial situation, please contact NMC Finance.
