Servicability involving part time business

[The Dark Knight]

As the title suggest I have a part time business as well as a full time job. Business has been picking up and I think its time to upgrade our equipment. The business is run through a company'(co director with wife) so wasn't sure the best way to finance the equipment. As I'm about to purchase 2 new IPs id rather not pay for the equipment and keep the cash in offset. From what I've seen the main banks don't do loans for businesses below 10k the new equipment would probably be about 5k so should I use my business cc and repay it over the next few months. So my main question is will this affect my servicabilty having a credit card overdue for a few months even if its through the business? Thanks

 

[Terry_w]

If your cc will be over the limit it may effect finance. But iff under the limit then it won't change things.

As an aside, why have 2 directors? Doubles the risk.

 

[The Dark Knight]

Hi Terry thabks for the reply yeah it will be under the limit whats the danger of been both co directors with the wife?

 

[Redom]

Hi Terry thabks for the reply yeah it will be under the limit whats the danger of been both co directors with the wife?

Can you just put it on the CC and pay the minimum repayment? If so that should be fine.

This may be irrelevant, but for your part time business income to be used for servicing, will need 2 years ABN history and 1 year + financials (2 with most banks).

Cheers,
Redom

 

[The Dark Knight]

Hi Redom I was wondering about this as my current broker didn't ask for my payslips from the part time business. We don't pay ourselves a directors fee just a extra salary so that can't be taken into serviceability for 2 years? There goes my masterplan for property investing domination

 

[Redom]

Hi Redom I was wondering about this as my current broker didn't ask for my payslips from the part time business. We don't pay ourselves a directors fee just a extra salary so that can't be taken into serviceability for 2 years? There goes my masterplan for property investing domination

No you can't include what you pay yourself, at least not for two years.

You may be able to service without any income from the p/t business, in that case, all you'll need is an accountants letter stating that your company has no outstanding liabilities/not a drain to your hip pocket.

Cheers,
Redom

 

[Redom]

There goes my masterplan for property investing domination

Haha sorry to be the bearer of bad news!!! Nice try though.

 

[The Dark Knight]

Haha sorry to be the bearer of bad news!!! Nice try though.

Hahah I'll forgive you