Self-employed
Your accountant minimised your income. Now a bank is reading it.
Self-employed borrowers get knocked back constantly — not because they can't afford the loan, but because the wrong lender read the financials the wrong way. Choosing well solves most of it.
Your options
Six routes, from standard to specialist.
We aim for the cheapest one you genuinely qualify for, not the easiest one to get approved.
Full-doc lending
Two years of tax returns and financials, assessed at standard rates and standard policy. If your figures support it, this is the cheapest route and the one we aim for first.
One-year financials
Several lenders accept a single year of returns if your business has been established long enough. Useful when last year was weak and this year is strong.
Low-doc
Income verified by BAS statements, business bank statements or an accountant's declaration instead of full financials. A slightly higher rate in exchange for lighter verification.
Contractor lending
If you're on an ABN but effectively contracted to one employer, some lenders will treat you much like a PAYG applicant — considerably better terms than a true low-doc.
Specialist lenders
For an ATO payment plan, a past default or a short trading history. Priced higher, used as a bridge, refinanced to mainstream once the record is clean.
Company & trust lending
Borrowing through a company or trust structure. Fewer lenders write it and the documentation is heavier, but it's entirely standard with the right one.
Add-backs
Your taxable income isn't your real income.
Lenders can add certain deductions back onto your net profit to estimate genuine cash flow. Whether they do — and how generously — varies enormously between them.
This is the single highest-leverage thing in self-employed lending. The same financials can produce wildly different borrowing capacity depending on who assesses them.
Commonly added back
- Depreciation — a paper deduction, not money that left the business
- Interest on debts that will be refinanced or cleared by the new loan
- One-off expenses that genuinely won't recur
- Superannuation contributions above the compulsory minimum
- Director's wages and trust distributions paid to you or your partner
- Rent paid to a related entity, where the lender permits it
Getting ready
What to do before you apply.
A little preparation changes the outcome more for self-employed applicants than for anyone else.
- Get your tax returns lodged and up to date — overdue returns stop most applications dead
- Keep business and personal spending in separate accounts
- Clear or reduce credit card limits, which are assessed at the limit, not the balance
- Avoid buy-now-pay-later accounts in the months before applying
- Ask your accountant for an add-back summary alongside the financials
- Come to us before you apply anywhere — declines leave marks on your credit file
How much can you actually borrow?
Open BorrowIQ — our borrowing power calculator. A real serviceability engine, not an income × 5 guess. Takes about two minutes.
Self-employed FAQ
What business owners ask.
How long do I need to have been self-employed?
Most mainstream lenders want two years with the same ABN. Some will accept one year if your business has been registered longer, and a few will consider six months where you've moved into self-employment in the same field you worked in as an employee. Below that, specialist lenders become the realistic option.
My tax return shows barely any income. Can I still borrow?
Usually, yes. Good accounting minimises taxable income; lenders know this and allow add-backs — depreciation, one-off costs, interest being refinanced, excess super and so on — to get closer to true cash flow. The difference between a lender that applies add-backs properly and one that reads the bottom line literally can be hundreds of thousands in borrowing capacity on identical financials.
What documents will I need?
For full-doc: two years of personal and business tax returns plus the notices of assessment, two years of business financials, and recent business bank statements. For low-doc: typically your last four BAS statements, six to twelve months of business bank statements, and an accountant's letter. We'll give you a precise list for your chosen lender rather than a generic one.
Do I pay a higher rate because I'm self-employed?
Not if you qualify under full documentation — you're assessed on the same terms as anyone else. Low-doc and specialist lending do carry a premium, reflecting the reduced verification. The plan in that case is normally two to three years of clean conduct and then a refinance to mainstream pricing. More on low-doc lending.
I have an ATO payment plan. Is that fatal?
No, though it rules out most mainstream lenders while it's running. Specialist lenders will consider it, particularly if the plan is being met on time and the underlying business is sound. Clearing it before applying, where that's possible, opens up far better options.
Been knocked back before?
Bring us the financials and the reason you were declined. More often than not, it was the lender's policy rather than your numbers — and a different lender changes the answer.