Self employment does not go well with lenders.
In other words, it is difficult to get any loan if you are your own boss.
Simply put, banks do not see self employment as a good guarantee to pay back their self employed loan in Australia.
Yes, there maybe assets serving as the loan security but this is not a long term interest gain.
This does not mean that self employed loans in Australia for small businesses do not exists. However, lending institution will still need to establish serviceability of your repayments. For the borrower to ensure the best position to get the self employed loans in Australia, the following is required:
The rule in a hostage negotiation is simple: "never speak directly with hostage takers. Always use a mediator...".
Of course, banks are not terrorists but they can be tough negotiators.
Mediators, such as mortgage brokers, not only provide knowledgeable options but also extend the time to bargain. In addition, mortgage brokers are able to better communicate with banks. The reason is simple - banks also use brokers to discuss lending options.
Self employed people sometimes struggle to verify their income. Often payments are irregular and seasonal.
It is important to keep the record of profit and loss statement for at least 3 years. The same applies to the full tax return and ATO tax assessment.
Banks will need to check if your business has been either growing or was relatively stable for the past 3 years. To evaluate your real spending, lenders will also request bank account statements for the past 12 months. Sometimes this may not be enough to obtain the loan. In this case no doc or low doc home loans are available.
No doc home loans do not require income verification. Low doc home loans need only some documentation, but all. Although no and low doc home loans are practical options, these finances carry higher interest rate, fees and charges.
For large loans such as home loan, you should shop with financially secured lenders. This means major banks and large lending companies. For short term personal loans you can safely shop among all lenders. Here, FreedomLoans, GE Money, Aussie, Xinc are just few to look for the best deal.