Self-employment can offer freedom and flexibility – but it can sometimes create challenges when it comes to getting a loan and proving your income.
The good news is that there are flexible lenders like Liberty, that will work harder to understand your personal situation to help you secure the finance you need.
Proof of income
For self-employed borrowers, traditionally lenders have required the last two years’ audited personal and business tax returns to confirm an applicant’s income.
However, more free-thinking lenders, like Liberty, appreciate the challenges this can sometimes present and will accept alternative documentation as a way to verify income.
Bank statements, business activity statements or an accountant’s declaration are all examples of other forms of income verification. Loans for self-employed borrowers that allow this type of income verification are often referred to as ‘low doc’.
Build your credit file
Another way to help get your loan across the line is to ensure you have a strong credit file and show that you can manage credit responsibly.
This can be as simple as paying down existing debts and ensuring you pay your bills on time.
Most low-doc lenders will assess borrowers with imperfect credit history on a case-by-case basis, but a stronger credit file may mean you’re able to negotiate a better deal.
Your accountant can help
With a comprehensive knowledge of your business performance and financial situation, your accountant can often provide support to your loan application.
To learn more about how your accountant can help or about low-doc loans more generally, contact a Liberty Adviser today.