EPISODE 123 : Borrowing Power - How to maintain it as a business owner

2023-03-29

Going into business for yourself is an exciting time there is no doubt about it. We often head into this journey with the drive and motivation to create a life on our terms, that provides flexibility, gives us back time in our lives and hopefully makes us some money along the way. But on the way to carving out a business to hopefully create the personal life we so crave, one thing is often overlooked until it’s too late and that is what impact does becoming a sole trader or starting a business have on your borrowing p...

But on the way to carving out a business to hopefully create the personal life we so crave, one thing is often overlooked until it’s too late and that is what impact does becoming a sole trader or starting a business have on your borrowing power like getting a home loan or refinancing the one you have. It’s a question I often get asked by business owners, so …

let’s chat about what the impact may be, how to be prepared and other things you may need to know. Take a listen … A x

Key moments throughout the episode ..

You'll need at least 2 years trading income or financial results for assessment. [02:45]
Your 2 years of trading income will be averaged [04:30]
Still working ... You'll need to consider why income types may matter [06:28]
It pays to show around and know who is offering what and what requirements are needed. [08:30]
Why contracts or being a sub contractor may improve your borrowing power [09:38]
Impacts of minimising your tax on your borrowing power [11:33]
What documents and supporting information is needed for application [12:34]

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