Running a small business is a challenging and rewarding pursuit. Being self- employed and running your own small business presents can make it more difficult to prove your income as compared to a salary earner. Your accountant always prepares your financial accounts in such a way as to reduce your tax liability. This is however the very opposite of what your bank needs to confirm your income. We at Menon Mortgages are highly experienced in the assessment of financial accounts and know which portions of your financials to add back to present the true servicing picture.
Business loans are assessed as higher risk by banks and are also priced differently from residential loans. It is quite common for business owners to leverage their own home to borrow funds for business purposes. The good news is that pure business purpose lending is exempt from RBNZ restrictions affecting residential property lending. Business working capital facilities and term loans need to be reviewed regularly to ensure that the correct pricing is being applied to them. Neglecting to do this may result in your business paying too much in interest. Talk to us today about your business financing needs.
Business Loans
Asset finance
Using asset finance is an important way to conserve the equity and protect your home. Asset finance is typically used to purchase business assets like motor vehicles, trucks & trailers, vans, diggers and excavators etc. The advantage of asset finance is that to loan is linked to the vehicle or asset purchased and you do not have to put up your home as security. We offer competitive asset finance options for your business. Call and we can discuss.
Commercial property
You may be looking to buy commercial property either as a base for your business or as a passive investment. Either way commercial property is an attractive alternative to your normal residential property and presents a different set of risks to be understood. Banks apply different lending criteria for lending on commercial property and the resultant commercial loans are also priced higher than residential. The significant benefit of investing in commercial property is that the rate of return is generally much higher from a commercial lease as opposed to residential rental income. We have in-depth knowledge when it comes to commercial security. Call us today to discuss your next steps.