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.