Small Business Lending Explained 🔎
An ‘Iain-Sights’ video.
This week’s video is a bit different — I’ve got the drone following along (and Dave running around doing his thing in the background).
But the topic is an important one:
Small business lending.
Who Can Apply?
One of the biggest misconceptions is that business lending is limited to certain structures.In reality, lending can be available for:• sole traders
• companies (Pty Ltd)
• trustsEach structure is assessed a little differently, but there are options available across all of them.
It’s Not Just Home Loans
Another common misunderstanding is that business lending is always tied to a home loan.That’s not the case.There are a range of different lending options depending on what you’re trying to achieve, including:• property lending
• cash flow / working capital
• asset & equipment finance
• residential lending (when relevant)The right option depends on your situation and your goals.
What About Low Doc / Alt Doc?
You might have heard the terms low doc or alt doc.These generally refer to lending options where less traditional documentation is required.For example, instead of full tax returns, lenders may accept:• BAS statements
• accountant declarations
• business bank statementsThis can be particularly useful for:• newer businesses
• self-employed clients with fluctuating income
• situations where tax returns don’t reflect current incomeThat said, it still needs to be assessed properly — it’s just a different way of verifying income.
Why Structure Matters
With business lending, structure is everything.It’s not just about getting approved — it’s about making sure:• the loan fits your cash flow
• the risk is appropriate
• the structure works with your business
• it aligns with your long-term plansThis is also where working alongside your accountant can be really valuable.
The Bottom Line
Small business lending isn’t one-size-fits-all.There are multiple ways to structure things depending on your situation, your business, and what you’re trying to achieve.My role is to help you find the most efficient and suitable way to lend, not just the easiest option.If you’re not sure what your options look like, or where to start, happy to have a chat.
👉 Learn more here:
https://www.mortgagemuster.com.au/refinance Or reach out for a no-obligation chat.
Thanks :)
Iain (& Dave)
Mortgage Muster