Many self-employed applicants are often refused finance while others face very difficult hurdles to overcome and hence opt out of borrowing due to their overall business structures.
Some lenders would assess the borrowers’ financial capability utilizing the latest financial accounts, and require the past 2 years’ financials as a guide. Other smaller lenders may utilize the average of the last 2 years’ financial accounts and if the borrower’s previous year was lower than the current year, the borrower may be stymied by this requirement .
When issues with the economy arise or events like the Royal Commission occur, the default position of the banks would be to turn away anything that is too difficult or potentially a risk. The application process is now more automated and the personal connection between the borrower and the lender at the bank becomes non-existent. This is why an experienced finance broker is ideal to assist the borrower navigate the credit process. This is a growing segment in the market that the traditional lenders are ill- equipped to manage and service.
Paul is accredited with many proven and experienced lenders who offer a variety of options to suit the borrower’s requirements. Please do not hesitate to contact Paul if you are a self-employed borrower and want a smoother and less stressful process for your personal and professional finance needs.
Tags: self employed