Here is a list of reasons why self-employed borrowers and small business owners are finding it tough to meet the standard lending requirements set by the major banks:
- They are often unable to provide sufficient documentation to verify their income;
- Their type of employment (e.g. sub-contractor arrangements) can often be considered to be unacceptable;
- Their length of employment can be considered to be unstable; or
- Their need for cash-out requirements to expand their business can be considered to be unacceptable.
If you are a small business owner or a self-employed borrower who is looking to expand business or purchase much-needed plant or equipment, and you are unable to meet the standard lending requirements set by the major banks. You need to look at an alternative lending solution which can be provided to you by non-bank specialist lenders.
The non-bank specialist lenders:
- Will assess each application on an individual basis as it enables them to better understand your circumstances; and
- Will assess the reasons why you did not meet the criteria set out by the major banks.
With almost 35% of small business owners and self-employed borrowers now requiring an alternative lending solution, it is not surprising to see the specialist lending market continuing to grow.
Ensuring you have the right finance structure in place for you and your business is vital. So, you should seek expert and specialist advice from a professionally qualified finance broker as he/she will have a thorough knowledge of credit policies and requirements provided by the non-bank specialist lenders.
You should also seek independent taxation and accounting advice regarding the treatment of depreciation and any tax advantages that may be available to you.
Having an independent and expert professionally qualified finance broker on your side will save you lots of time. The finance broker will negotiate on your behalf with the non-bank specialist lenders and will secure your eligibility for a specialist lending product as well as get you the best business loan that suits your needs and cash flow.