Recently finance for debt consolidation and re-financing of existing loans are on the rise. Debt Consolidation Loans are similarly on the increase.

Some debts that could be considered for business and personal debt consolidation include :

  • Tax liability
  • Credit cards and store accounts
  • Existing residential andcommercial investment loans

Paul has access to lenders that would entertain any reasonable debt consolidation loan.

The 4 Cs and E

Lenders tend to utilise certain principles when assessing a personal or business loan submission :

Character – whether the customer is a good borrower, how long has the borrower been in business and if all debts are disclosed. Do they have agood handle on day-to-day operations and systems?

Capacity – assessing if the customer can repay the loan and other existing liabilities (using the lenders assessment rate) without any financial hardship.

Credit History – ascertaining their credit history which currently provides a good summary for the lender.

Collateral – the security that is offered to the lender. This is the lender’s “insurance” that if the above fail, how the lender will recoup its debt.

Exit – the applicant’s exit strategy in clearing the debt on or prior to retirement. Note that drawdown on superannuation funds are not regarded as an exit strategy to clear debt.


If you are seeking credit via online applications or directly with a bank, a credit check is conducted and your enquiry is recorded.

The more “hits” are on your Veda Credit file, the higher the possibility of your score being reduced. The majority of lenders look closely at an applicant’s credit file and would note if an applicant has been seeking finance. This may have an effect on their decision making as this activity generally raises “alarm bells”.

A professional finance broker should conduct a credit check prior to any finance applications and address any issues on the file prior to submissions of applications to ensure smooth passage.

Note too that from July 2017, the Australian Tax office (ATO) will now record any tax liabilities in excess of $10,000 on the applicants credit file.

Talk to Paul today if you need more information about your home loan application.