Who this covers: commercial and residential cleaning operators, pest control technicians and franchisees, and businesses with staff on contracts.
What lenders do differently
The home loan: how the income is read
Two years of returns with add-backs; franchisees are read on their own returns with the franchise fees as an expense. Contracts with commercial clients support the income's continuity.
Vehicles
Chattel mortgage over the van or ute, GST claimed; a fleet for staff financed on the business's figures.
Equipment and chemicals
Equipment finance for floor machines, pressure washers and fogging gear; a trade account for chemicals. Low-doc to about $150,000 per item.
Monthly contracts
Commercial clients pay monthly on terms; invoice finance against the contracts or an overdraft covers wages between payments. A franchise purchase is financed as a business acquisition on the franchisor's figures and the buyer's experience.
Worth knowing before applying
Franchise agreements with a short remaining term limit the finance available against them; vehicles on the business stay off the home loan assessment; and lodged returns are the single biggest help.
The tools that fit
- Chattel mortgage calculator
- Business and asset finance
- Income annualisation calculator
- Working capital and overdraft calculator
- Equipment finance calculator
- What lenders ask for: checklists
Not sure whether the business needs an overdraft, or how big: the working capital calculator works it out from sales, payment terms and stock, with presets for a typical business like yours.
Policies on all of the above differ lender to lender and change without notice; the value of the conversation is knowing which lender's policy reads your payslip best on the day. Understanding how your income is read before you apply is what makes the application calm.