New company, 3-month ABN — can experienced directors still get major bank approval?

Restructuring a business is the right move for growth. But it creates a problem: on paper, you now have a brand-new ABN — even if the directors have been trading for years.

Two experienced electricians found this out the hard way. After merging their sole trader businesses into a new company, they were 3 months into the new ABN when they needed a $80,000 truck. Major bank finance appeared off the table.

The situation
Two established electricians had operated separately as sole traders before combining their operations into a new company structure. The business was viable and experienced — but the ABN was only 3 months old. Standard major bank Low Doc eligibility typically requires 24+ months ABN/GST history.

The challenge
On paper, this looked like a new business with no history. Every standard lender assessment would have declined or pushed the deal to second-tier at higher rates. The 3-month ABN didn’t reflect the reality — two experienced operators with verified trading history between them.

What Yakka did
Yakka worked closely with the clients’ accountant to prepare a submission that told the full story. The key was demonstrating continuity of trading: that the new company was not a start-up, but a restructure of two existing businesses with documented income and a clear operating history under each director’s previous sole trader ABN.

That submission went to Westpac — who, with the right supporting documentation, could assess the application on business substance rather than ABN age alone.

The outcome
– Westpac approved $80,000 for a 2022 Isuzu Truck
– No deposit required
– Major bank rate — not second-tier pricing
– Fast settlement
– Approval based on verified trading continuity, not ABN date

Why this matters for your practice
Restructuring a client’s business is a routine part of an accountant’s work. Merging sole traders into a company, moving from a trust to a company, adding a new entity for a new division — these are all sensible strategic moves.

The unintended consequence is a short ABN age that can trigger automatic lender declines, or at minimum a push to higher-rate second-tier options.

The fix is documentation and presentation. A well-structured submission that traces the continuity of trading through the restructure can unlock major bank finance even at 3 months ABN. That’s the difference between the accountant solving a problem and inadvertently creating one.

Got a client in a similar position? Talk to Drew.
Drew Davis — Head of Partnerships
drew@yakkafinance.com.au | 0481 002 879