Jim had been a carpenter for years, but got sick of it so changed careers into plumbing. He became an apprentice to his Dad, and four years later got qualified for an ABN and started to work for him proper.
He needed to upgrade his old ute for the job, and found a near-new model he wanted under a 'chattel' mortgage structure (a business mortgage on a moveable item of property).
Jim also needed permission from his wife, so he needed the rate to be sharp and repayments reasonable, to convince her. Two to tango, as they say.
Normally property owners that are self-employed are easy and attract the lowest rates. However, Jim had only been self-employed for four months, and had NO financials to back up an argument for stable historical financial dealings. Not a great start to getting the attention of a lender. We knew this one would need a strong sell.
Now, because applying for commercial finance for cars, business loans falls outside National Consumer Credit Protection Act Provisions (NCCP), this means;
1) You cannot use salary income from spouses or guarantors
2) On the flip side, it's a commercial decision, so the strength of your credit application is critical.
So, to make this one work, we took Jim's bank records and tallied the invoices. We had his accountant draw up some interim financials, which actually showed profit was higher than salary. We proved his wife could cover half the shared debts. And we even structured a tiny deposit into the deal to get it to pass. It was down to the dollars.
We negotiated all week with our preferred lender, discussing dollars here and there.
It worked! Jim was thrilled with his new ute, his wife was happy with the loan, and it set up his growing business on good footing.
Another success story, from Wilson Financial.
He needed to upgrade his old ute for the job, and found a near-new model he wanted under a 'chattel' mortgage structure (a business mortgage on a moveable item of property).
Jim also needed permission from his wife, so he needed the rate to be sharp and repayments reasonable, to convince her. Two to tango, as they say.
Normally property owners that are self-employed are easy and attract the lowest rates. However, Jim had only been self-employed for four months, and had NO financials to back up an argument for stable historical financial dealings. Not a great start to getting the attention of a lender. We knew this one would need a strong sell.
Now, because applying for commercial finance for cars, business loans falls outside National Consumer Credit Protection Act Provisions (NCCP), this means;
1) You cannot use salary income from spouses or guarantors
2) On the flip side, it's a commercial decision, so the strength of your credit application is critical.
So, to make this one work, we took Jim's bank records and tallied the invoices. We had his accountant draw up some interim financials, which actually showed profit was higher than salary. We proved his wife could cover half the shared debts. And we even structured a tiny deposit into the deal to get it to pass. It was down to the dollars.
We negotiated all week with our preferred lender, discussing dollars here and there.
It worked! Jim was thrilled with his new ute, his wife was happy with the loan, and it set up his growing business on good footing.
Another success story, from Wilson Financial.
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