I have been running my own business for about eight years. There are many things I love about being my own boss, but one of the big frustrations is accessing finance. Applying for a loan involves submitting complete business accounts (including trust accounts if applicable). In addition, once you get to the beginning of a new year, the previous end of financial year business accounts need to be submitted in order to apply for finance, even if as a business owner you don't need to lodge your accounts with the ATO before May.
The main frustration though is that in my experience banks view self-employed as a bigger lending risk than your typical salary earning employee. This just makes no sense. Sure my yearly income can fluctuate – like any business some years are better than others but the key fact is, I am not about to go from earning an income to earning nothing. Even in a bad year, where my income may be for example 30% lower, it won't be zero. In fact, I would suggest that my income is more secure than the bank employee who is assessing my loan application!
