Loan with short term income as sole trader?

Discussion in 'Loans & Mortgage Brokers' started by Semaj, 3rd Nov, 2020.

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  1. Semaj

    Semaj Member

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    Is it possible to get a loan without the banks looking at the last 2 year tax returns for a sole trader. I am in the current situation of having $150 000 equity, $25 000 savings, $8000 net monthly business profit. The last 2 tax returns have been low overall though so I wanted to see if there was any other possibilities of getting a loan with a low yearly income? Or if any lenders looked at other things apart from anual tax returns?
     
    Semaj, 3rd Nov, 2020
    #1
  2. Terry_w

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

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    it depends on how low. You would still need to demonstrate the ability to service the new and existing loans
     
    Terry_w, 3rd Nov, 2020
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  3. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    cutting to the chase and calling it what it is

    whats low income ?

    for some its 30 k for others its 300 ?

    ta
    rolf
     
    Rolf Latham, 3rd Nov, 2020
    #3
  4. Trainee

    Trainee Well-Known Member

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    And are you manipulating it via cash receipts?
     
    Trainee, 3rd Nov, 2020
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  5. Semaj

    Semaj Member

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    @Rolf Latham $72k gross profit, $51k net profit last year and around $60k gross, 20-30k net profit this year
     
    Semaj, 3rd Nov, 2020
    #5
  6. Trainee

    Trainee Well-Known Member

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    ?
     
    Trainee, 3rd Nov, 2020
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  7. Semaj

    Semaj Member

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    @Trainee $8000 net monthly profit has been for last 2 months, and low periods over the year therefore contributing to low overall anual income
     
    Semaj, 3rd Nov, 2020
    #7