There are over 2 million self-employed people in Australia.
Are you one of them?
If so, we are here to help.
We understand that being self-employed means that you likely have specific and more complex financial requirements, with a mix of residential and commercial debts, an absence of paperwork and complicated tax arrangements.
Our senior finance brokers specialise in helping self-employed borrowers secure finance for several purposes, such as:
- Purchasing a new motor vehicle (cars, trucks etc.);
- Purchasing new tools or equipment;
- Purchasing commercial property;
- Start-up/expansion capital;
- Paying out other debts; and,
- Managing cash flow.
Using a broker can help you avoid the challenges that self-employed borrowers are often faced with.
Your broker will work with you to unearth any pertinent information that may mitigate financial deviations and ensure that you can meet the necessary criteria to secure your finance approval, saving you stress, wasted time and the disappointment of rejection.
What are the challenges that self-employed borrowers can face?
When it comes to assessing borrowing capacity on a self-employed income, the results can vary drastically between lenders depending on their policies and assessment models.
Borrowers who are employed and paid a PAYG salary from their employer can usually apply for finance after 3-6 months in their job. By contrast, with most lenders a self-employed borrower will need to show two years of financials to support their application.
Self-employed borrowers frequently experience challenges in securing finance. This could be because:
- they earn an inconsistent and irregular income;
- their financial information is not up to date; or,
- they have only been in business for a short length of time.
A self-employed borrower is likely to be successful in securing finance if they can provide the following to evidence their borrowing capacity:
- Last 2 years company tax returns including profit and loss statements;
- Last 2 years personal tax returns and notice of assessments; and,
- Your ABN and GST registration dates (if applicable).
Should a self-employed borrower not have this documentation available, there are other options.
Several specialist lenders offer low-doc loans for self-employed borrowers where they may require as little as six months in the business, depending on the size of your deposit or equity in existing property.
Click here to make an enquiry and get put in contact with one of our senior finance brokers specialising in self-employed solutions.
We hope to hear from you and we look forward to supporting you in achieving your financial goals now and into the future.
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* The information contained in this article is general advice only and your personal circumstances have not been taken into consideration during its preparation. You should seek independent advice before making any decisions in relation to your personal finances. Finance availability is subject to applicant satisfying lenders approval criteria and all finance approvals are at the discretion of the lender.