Changing business structure to get loan?

Discussion in 'Business Accounting, Tax & Legal' started by Semaj, 3rd Nov, 2020.

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  1. Semaj

    Semaj Member

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    Hi I was wondering if it is possible to change a business structure to increase loan eligibility. For example my understanding is under an ABN sole trader you need to provide 2 years worth of tax returns to lenders whereas full time employees a couple months worth of payslips is adequate? If the business structure was changed from sole trader to i.e company or something else would it ever be possible to run a business and only provide couple of months of payslips to apply for a loan?
     
    Semaj, 3rd Nov, 2020
    #1
  2. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    only if you didn't own the company - or your spouse
     
    Terry_w, 4th Nov, 2020
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  3. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    The entity must have verifiable income for a full doc loan, if you and often even a family member has directorship or majority shareholding.

    There may be easier ways around this.

    We have managed to get loans sorted with as little as 6 mths in Business where the end work type is the same as what was dine previously on a PAYG basis. If its a clean skin biz, then an alt doc product would be the only way usually

    ta
    rolf
     
    Rolf Latham, 4th Nov, 2020
    #3
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