Self Employed or Business Owner With Tax Returns
Owning a business or working for yourself can cause some initial issues when you are applying for finance. In the first few years you will find that many banks and non-banks will need more financial information than you have. There is some relief at least – the minimum amount of financial information you need to get a home loan is 12 months. What that means is that you should have been in business for 12 months and you will have to provide your information as at the end of the financial year.
There are plenty of business owners and self-employed people just like you, and they get loans every day. For many of them, their biggest concern is that the bank won’t understand their financial structure or statements. This is why it’s important to have your broker involved. A good broker will be able to have an intelligent discussion with your accountant, sometimes about items even you don’t understand on your Profit and Loss or Balance Sheet. It’s these discussions and the ability of your broker to de-construct your financial’s if necessary, and retell your story to bankers that will show their true value.
So, if you have been in business for more than 12 months, have your financials and your tax returns completed, then don’t hesitate in applying for a loan to buy the property you want.