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I have loans in my company name. Will a lender need to factor these in when determining my borrowing capacity?

Wednesday, July 26, 2017

Most lenders will factor in all loans in your company (including mortgages, commercial hire purchase, leases, credit cards) when they are calculating your personal borrowing capacity, given you are liable to make those repayments.

Some banks are more flexible and make the assumption that any debts in the company name are being managed by the companies cash flow, and therefor will exclude them from your personal assessment. This can greatly improve your borrowing capacity.

Let us know if you need more information.