I see a lot of discussion especially from Steve McKnight about keeping your job. I have been a small business owner for the past 10 years, 6 years full time. We like a lot of businesses have had about a 30% decline over the past 18 months. I am very optimistic about the next couple of years, we have picked up some really good contracts. I am wondering though about the effect this has on our ability to lend money.
Mal
A drop in income can hurt your borrowing power.
When you’re self employed most banks usually go off your last 2 tax returns and take close to the lowest figure of the 2 so if you have had a bad year or two it can take a little while to have things looking better to the banks again.
There are a couple of banks who are happy with the latest tax return so that can help in some situations if you’ve had a not so good year but then followed by a better year as only the decent one is used and there’s no averaging down by previous years.
Kinnon Bell | Kinetic Funding
http://www.kineticfunding.com.au
Email Me | Phone MeMortgage & Personal Loan Broker based in Cairns and Melbourne but servicing clients Australia wide.
You can lend me money anytime. Are you referring to borrowing money?
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
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