Options for small businesses
WE’VE ALL seen those people who seem to get results faster than everyone else. They cruise to the front of queues for trendy bars, get the free upgrades on air travel, and manage to get seats at brand new restaurants long before the rest of us.
Well, I can’t help you with bars, travel or restaurants, but what I can help you with is fast-tracking your home loan application.
The first thing to do is to think of what the bank is most interested in – lending to people with a good credit record, being comfortable they have the income to make the repayments, and that there is an adequate level of security cover for the loan in the event that something goes wrong.
Armed with that perspective, you can then prepare the information you need to present to the bank. Some key aspects to include:
- Who is going to be the borrower? – personal names, your trading company/trust or a new entity.
- How much do you want to borrow? (make sure you take account of costs such as stamp duty when working this out).
- Income information – preferably you will provide the last two years’ financial statements and tax returns (business and personal).
- What debts does this income need to service? Provide details of all your loans (including credit cards). Preferably you will have the last six month’s loan statements, so the bank can see that repayments are made on time.
- A statement of personal assets and liabilities.
- What security are you offering? – Usually this will be real estate. Detailed information could include a purchase contract or contract note, rates notice and insurance certificate, etc.
The list might seem extensive but it should all be reasonably readily available. Don’t be concerned if it isn’t all at hand – start the discussions with what you have.
My experience is that the more information I get from a client, the better the job I can do for them. This particularly applies to the speed with which I can make a decision on the loan, but also makes sure the loan structure is best suited to the customer’s needs, eg. repayment arrangements, term, price, etc.
So a little bit of homework up front can save you time and hassle down the track and can mean a quicker response to your application.
Now, if anyone has any tips on how to get upgraded on air travel, please let me know!
BOQ - Your own personal bank
1 Maple St, Maleny
Phone 5499 9855