Running your own business changes how lenders look at you. Whether you need a new ute, equipment for the job, cash flow to cover a slow month, help with an ATO debt, a place to work from, or a home loan when your income comes through an ABN, I can help you understand your options and find lending that fits how your business actually works.
When you work for yourself, your income rarely looks like a neat payslip. It goes up and down with the seasons, it sits across BAS statements and tax returns, and a big year on paper can still feel tight once the bills are paid. Some lenders handle that well. Others don’t.
My job is to understand your business first, then match you with lenders whose rules suit it. That includes contractors and healthcare workers who run their own ABN, not just traditional small businesses.
You deal with me from first chat to settlement. Where your scenario calls for it, we work with trusted specialist partners to find the right solution, and I stay involved the whole way.
We may receive commission from lenders, and some referral partners may pay us a share of their fees. We’ll tell you about any of these in writing before you go ahead.
Which one fits depends on what you’re buying, how your business earns money, and how long you’ve been trading.
Finance for the things your business runs on: cars, utes, vans and trucks, plant and machinery, tools of trade, and other equipment. The item you buy usually acts as security for the loan. Common structures include a chattel mortgage, a finance lease or a hire purchase agreement. Each one treats ownership, GST and tax differently, so it’s worth talking to your accountant about which suits your business before you sign.
Money to keep the business moving: buying stock, covering wages through a slow patch, taking on a bigger job, bridging the gap while you wait for invoices to be paid, or paying off a tax debt owed to the ATO. Options include unsecured business loans, secured business loans, lines of credit and invoice finance. Unsecured and short-term loans can be quick to arrange but often cost more, may have weekly or daily repayments, and usually need a personal guarantee from the directors.
Buying or refinancing a workshop, warehouse, office, shop or clinic, whether your business will work from it or you’ll lease it to a tenant. Commercial loans work differently to home loans. Lenders often ask for a bigger deposit, may offer shorter loan terms, and look closely at the property type, the lease and the tenant. Commercial property values and rental income can both fall, and vacancies can last longer than with homes.
A home loan when your income comes from your own business. Many lenders ask for two years of tax returns and financials. Some will consider a shorter trading history, or accept other proof of income such as BAS statements, business bank statements or an accountant’s letter (often called alt doc or low doc loans). These options may come with a higher interest rate, a bigger deposit or extra fees, so we’ll weigh up whether they suit you.
I’m a finance and mortgage broker and a registered nurse who still picks up casual shifts, so I understand what it’s like when income doesn’t arrive in tidy, equal pay packets. Before we talk about any lender, I want to understand how your business earns, what the finance is for, and what the repayments will mean for your cash flow in a slow month as well as a good one. If a loan doesn’t look affordable, I’ll tell you.
A few things worth knowing before a lender looks at your business.
It depends on the lender and the type of finance. Many lenders prefer two years of trading history, but some will look at businesses that have been running for a shorter time, particularly if you have experience in the same industry. Shorter histories may mean different conditions, so it’s worth checking early.
Usually some mix of your ABN details, recent BAS statements, tax returns and financials, business bank statements, and ID. For asset finance, you’ll also need details of what you’re buying and who you’re buying it from. I’ll give you a checklist that matches your situation so you’re not chasing paperwork you don’t need.
Sometimes, yes. Some lenders offer business loans to clear a tax debt, and they may be secured against your business or your home. It’s worth knowing that a loan doesn’t make the debt go away. It moves it from the ATO to a lender, and the cost and risks depend on the loan. If the loan is secured against your home and you can’t keep up the repayments, your home could be at risk.
Before borrowing, it’s worth looking at other options too. The ATO may offer a payment plan if you’re in financial difficulty, although interest keeps building while you pay it off. The Small Business Debt Helpline (1800 413 828) offers free financial counselling for small business owners and sole traders. Your accountant can also help you understand the debt. If a loan does look like the right fit, I’ll walk you through the full cost and compare it with staying on an ATO plan before anything goes ahead.
Many business loans ask the directors to personally guarantee the debt. That means if the business can’t repay, the lender can ask you to repay it personally, which can put your own assets at risk. It’s important to understand this before you sign, and you may want independent legal advice.
Often, yes. Some lenders have limits on the age of the vehicle or equipment, or extra checks for private sales. Lender rules vary, so I’ll check before you commit to buying.
Each formal application can be recorded on your credit file. Lots of applications in a short time may make some lenders cautious. That’s one reason to talk your options through first, so we only apply where your scenario fits the lender’s rules.
That’s outside what I do. Questions about GST, depreciation, tax deductions or how your business is structured are best answered by your accountant or a registered tax agent. I’m happy to work alongside them on the finance side.
Tell me what you’re looking to fund, how long you’ve been trading and roughly what you need. I’ll walk you through the options that may fit, before any application goes in.