Digital ID checks when you apply for a business loan

Why do you need to prove who you are?

Every lender has to be confident that the person applying is who they say they are. It protects you — nobody can borrow in your name — and it’s part of the lender’s legal obligations. In a branch, that meant handing your licence across a counter. Online, the same check happens through your phone’s camera, usually in less time than it takes to find a park outside a bank.

How does an online identity check work?

Most lenders use a specialist verification provider. The steps are similar across providers:

1. You open a secure link sent by SMS or email.
2. You photograph your ID — front and back of a driver licence, or the photo page of a passport.
3. The system reads the document, checks its security features and, where available, confirms the details against official records.
4. You take a selfie or short video, sometimes turning your head or blinking, so the system knows it’s a live person rather than a photo of a photo.
5. Your face is matched to the photo on the document.
6. The result is sent to the lender — verified, or flagged for a manual check.

It usually takes a few minutes. If you’re applying from your phone, it fits naturally into the same session.

Who needs to complete a check?

Business structure	Who verifies
Sole trader	You
Partnership	Each partner
Company	Each director, and often major shareholders
Trust	The trustee — or each director of a corporate trustee
Any loan with a guarantor	Each guarantor

Everyone completes their own check on their own device. Nobody needs to be in the same place.

What is myID, and where does it fit?

This is where people sometimes get confused. The Australian Government’s Digital ID system describes Digital ID as a way of confirming your identity online without physical documents. It’s voluntary, available to people aged 15 and over with a smartphone, and you’re asked for consent each time information is shared. myID is the Australian Government’s own Digital ID provider.

For business owners, myID matters mainly because of the ATO. The ATO says myID is currently the Digital ID option for its online services, and you link it to your business using the Relationship Authorisation Manager (RAM). At least one principal authority — such as a director or the business owner — needs a Standard or Strong identity strength to link the business in RAM.

Why does that matter for a loan? Because the documents a lender may ask for — your ATO account statement, lodged BAS, notices of assessment — come from ATO online services. Having myID and RAM set up before you apply means you can download them in minutes rather than calling your accountant. The lender’s own identity check is a separate step.

If you’re not sure what you’ll need, the Skip-the-Branch Checklist builds a personal list. Or enquire now and your specialist will tell you — no credit check involved.

Is it safe to upload my licence?

Sending images of your ID is a reasonable thing to be cautious about. Sensible checks:

• Know who you’re dealing with. Only complete an ID check for a lender you’ve contacted or verified. Scamwatch’s 2026 loan-scam alert lists requests for personal details and ID documents as a common feature of fake loan offers.
• Use the official link. Verification links come from the lender or its named provider. If you weren’t expecting one, call your specialist first.
• Don’t send ID by plain email unless your specialist specifically asks and you’re sure of the address. Secure upload links are better.
• Know your rights. Organisations covered by the Privacy Act must notify affected people and the OAIC when a data breach is likely to cause serious harm, under the Notifiable Data Breaches scheme.

Our page on spotting a fake online lender has a fuller checklist.

What causes an identity check to fail?

• Expired documents. Check your licence date before you start.
• Glare or blur. Photograph on a dark, flat surface away from a window.
• Name mismatches. If your licence says “Elizabeth” and your ABN says “Liz”, flag it. Recent name changes need a supporting document.
• Address differences. An old address on a licence is common; tell your specialist.
• Poor lighting for the selfie. Face a window or lamp, not away from it.

A failed check isn’t a decline. It just means a retry or a different document.

Should you set up myID before applying?

If you’re a director or business owner and haven’t set up myID yet, doing it before you apply is a smart move. It lets you log in to ATO online services yourself and download things a lender may ask for — your ATO account statement, lodged activity statements, or a notice of assessment — without waiting on anyone else. Setting it up involves downloading the myID app from an official app store, entering your details and verifying identity documents to reach the strength level you need. Then a principal authority links the business in RAM. Allow a little time the first time you do it; after that, it’s a quick login.

Illustrative example: three directors, three cities

Illustrative only. A company with directors in Adelaide, Hobart and Cairns applies for a line of credit. Each director receives a verification link on the same morning. Two complete it within the hour; the third retries after his first photo is blurred by glare. All three are verified by lunchtime, and none of them visits a bank.

Proving it’s you, without the queue

Online identity checks are one of the quiet reasons you no longer need a branch to get a business loan. If you’re ready to start, the enquiry takes about a minute and doesn’t involve a credit check. It’s handled by one team who work on your application — not passed around a group of lenders.

Please enter names exactly as they appear on your ID and ABN. Matching details mean your identity checks go through first time. Start your online enquiry.