If you answered yes to that question you need to ensure that your tax minimisation strategy amongst other things doesn’t impact your borrowing capacity.
What am I talking about?
If you are a small business owner there is a fair chance you will be working with your accountant to minimise the amount of tax you pay. This is great and it is one of the many benefits of running your own business however, if you have plans to borrow money in the near future for personal or business use, tax minimisation could work against you as it may decrease your borrowing capacity. The other thing many small business owners don’t consider when looking to borrow money are the liabilities they have connected with the business.
There are so many things to consider when looking at the financial side of your business, and you are certainly not expected to know it all as you should be focusing on what it is that you specialise in and are good at. To guide and support you with your financials I’m sure you have an experienced accountant, but do you have an experienced mortgage and finance broker that understands the different lender options available to small business owners and the policies that determine your borrowing capacity?
I talk a lot about having me as part of your ‘team’ whether you are a first home buyer or small business owner, because when it comes to lending you don’t know what you don’t know and all too often people make the wrong assumptions which in turn jeopardises their borrowing capacity.
If you have plans to borrow money over the next year or two call me at Cherry Lending & Finance on 0427 374 155 before you book in to see your accountant so that I can guide you on the different things you need to consider.
We recommend that you seek independent financial and taxation advice before acting on any information in this newsletter. It contains general information only and has been prepared without taking into account your objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances. Your full situation will need to be reviewed prior to the acceptance of any offer or product. Interest rates are subject to change without notice. Lenders terms, conditions, fees & charges apply.