Navigating Tight Lending: Solutions for Self-Employed Business Owners
With lending restrictions from the major banks continuing to tighten, many borrowers are finding themselves left out in the cold, unable to secure loans at a prime rate. Self employed borrowers are frequently underserved and undervalued by the bigger players, but general have opportunities with niche policies from major lenders as well as from specialist lenders.
These are the top options I use to secure finance the self employed business owner. If your particular situation is not covered – there are likely other less known options.
Best % interest rates and maximum borrowing come after 2 years ABN and 12 months min GST registration. From that there are many ways to show your income to qualify for a loan including :-
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6 Months directors wages. We don’t show personal or company financials – don’t include any company debts, including tax portal.
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2 years tax returns – this options includes adding lease or other business loans as an expense. Lenders want personal tax and notice of assessment – company/trust tax and financials.
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1 year tax returns – same as 2 but only 1 year in isolation
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Lenders view depreciation differently – some have limits on types or amount – others add as income as if paid to yourself and taxed to show new net income.
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Lo Doc income declaration – most common is via accountant letter. No financials required.
Next Steps
Lets work together and find what options you have.
OVERVIEW
► ABN || 3 Months – 2 years +
You started a business – now what – who can help me! Did you go from being a being an apprentice to self employed? Were you a full time employee and now a contractor? Or you launched your business and now 3-6-12 months in and need funding for a new contract, equipment or vehicles?
► Full Doc – Near Prime – Lo Doc – Specialist – No Doc
Near prime currently the fastest-growing segment in the loan industry. While circumstances may differ from those of prime customers, the clients’ fundamental needs remain the same. Too often clients arrive with multiple credit hits on their files due to being steered in the wrong direction previously.
It’s not simply limited to people who’ve had a credit event. Investors, the self-employed and families, to name a few, are all potential clients who can benefit from a specialty lender.
► Business Banker
Term Loans – Overdraft – Bank Bills – Foreign Exchange – Debtors – Factoring – Short Term Lending
► Lender Policy
Let me help determine your business borrowing capacity based on current and future needs, security, and cashflow fundamentals.
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