If you are self-employed I'm sure you are well aware of the additional hoops you need to jump through to obtain finance. 

I am however seeing more solutions becoming available that are reducing the level of complexity. Providing easier access to property finance and also funds for your business at competitive rates.

Here are just some of the ways business owners are cutting out the paperwork and boosting their borrowing capacity.
 

One years income
Most lenders want to see two years financials and tax returns and will use the average to determine what income can be used. And any increases from one years to the next are capped at 20%.

This means if you had a big jump in income in your most recent year your income for loan servicing will be dragged down. For example, if your income in 2023 was $100,000  and your income in 2024 was $200,000. The maximum income lenders will use is $120,000. Leaving $80,000 on the table and reducing your borrowing power by $400,000 - $500,000.

The good news is there are lenders who will use 1 year only which can make a huge difference to your plans.
 
If you draw a salary from your business
If your business is paying you a salary. This income alone can be used for loan servicing without the need to provide business financials and tax returns. Plus business liabilities can be excluded from your loan assessment. 

BAS statements
If you haven't completed your tax returns, or have had an increase in income that isn't yet reflected in your full year financials then you can use your last two BAS statements. No financials or tax returns required.

Accountant letter

If your accountant is great at minimising your tax or you have a relatively complex business structure with a number of companies and trusts involved it can be difficult to accurately demonstrate your income to a lender. Let alone the amount of paperwork you will need to pull together. This can be short cut with a letter from your accountant confirming your income. 

Funds for your business at home loan rates
If you have equity in your home or investment property you can get funds out for business at home loan rates for working capital, to buy plant and equipment even to payout ATO debt. Up to $500,000 or even more.

Easy refinance
If you have been stuck on higher rates with your current lender but have been struggling to switch due to lender servicing there are some lenders that have an easier servicing test. Allowing you to switch your loan and get onto a lower repayment to improve cashflow. 

Borrowing for business owners is a complex area. And requires developing solutions based on your specific circumstances so you can progress with your financial plans.

If you would would like to find out what solutions are available to you then Book a call with me for a Free Maximiser session  Click here to go straight to my calendar to make a time.