If you run a small business you know it is a challenging and rewarding pursuit. Being self- employed and running your own small business presents make it hardened to prove your income compared to someone on salary and wages.
It’s a catch 22. Your accountant will prepare your financial accounts to reduce your tax liability. However when you then give your accounts to the bank, it shows that you earn’t very little money. This is however the very opposite of what your bank needs to confirm your income.
At Zebra, we have a comprehensive background in financial accounts and know which portions of your financials to add back to present the true servicing picture. This is both convenient for you and the bank.
Business loans can be assessed as higher risk by banks, as they don’t see self employed income as a steady income. Banks will also price these loans higher than 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 loans for business purposes are exempt from RBNZ restrictions affecting residential property lending. Therefore we can help you obtain your business needs. We not only work with the banks, but have great connections with non institutional lenders all over New Zealand, that are similarly priced to the major banks. Business working capital facilities and term loans need to be reviewed regularly to ensure that the true pricing is being applied to them. This is something we can help you with as neglecting to do this may result in your business paying too much in interest. Talk to us today about your business financing needs.
If you are looking to buy commercial property either as a base for your business or as a passive investment, this presents a different set of risks to be understood. Banks apply different lending criteria for lending on commercial property and the 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 so it balances out in the long-term. We have in-depth knowledge when it comes to commercial security and bank negotiation.
How to pick a commercial and self employed loan
Generally, the type of loan you choose is related to your purpose i.e. you may need a hand with cash flow. If you are a small business owner than the loan may be for as little as $10,000 or into the millions, it really just depends on your requirements and the type of business you’re running.
The main types of loans we can help you with are:
Lines of credit
Overdraft/working capital loan
Cash flow finance
Alternatively, If you want to buy a commercial property or refinance your existing loan, we have made it easy for you to do business.
Again, some of the different types of commercial finance facilities that we can assist with include:
Cash Flow Finance
Property Development Finance
For more information, please give us a call on 027 554 5639, or fill out an application here.