Who this covers: roof tilers, metal roofers and roof plumbers on an ABN, and roofing businesses with crews.
What lenders do differently
The home loan: how the income is read
Two years of returns with add-backs; weather-affected months are averaged across the year. Insurance work paid by assessors on terms shows as debtors in the return.
Vehicles and trailers
Chattel mortgage over the ute and trailer, GST in the next BAS, no deposit for an established ABN at many lenders. The chattel mortgage calculator shows the repayment and balloon.
Scaffold, edge protection and lifting gear
Equipment finance over its working life; hire businesses are financed separately. Low-doc approvals to about $150,000 per item for an established ABN.
Cash flow on insurance and builder work
Assessors and builders pay on 30 to 60 day terms; invoice finance against approved claims or an overdraft covers wages and materials between payments.
Worth knowing before applying
Storm seasons swing income between years; lenders read the lower year or an average; and vehicles financed through the business stay off the home loan assessment.
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.