I’m self employed but can’t get a loan at the bank, why?

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By May 18, 2017

If you’re any one of the 2.4 million self employed Aussies, you’ve no doubt already had a loan application knocked back by the banks. And while the big red ‘DENIED’ stamp can seem intimidating, the truth is you’re part of a huge market segment ignored by such narrow lending criteria.

The sausage factory 

Big banks lack flexibility. Their automated systems are perfect for mum and dad loans but find it difficult to meet the unique needs of self-employed Aussies, leaving this growing market segment under-serviced and ignored.

Putting your heart and soul into business ambition takes patience and resilience. Looking after your financial records in a meticulous way is non negotiable. But no matter how careful the self employed might be, banks have stiff criteria. They need specific timeframes, often out of step with self-employed pay cycles.

The self-employed may also struggle to provide the types of documentation that makes it easy for computers to make credit decisions, things like pay slips, group certificates and tax documentation. So despite the fact they you might be running a fantastic highly profitable business, it can be difficult for that to be reflected in the tick the box criteria often used.

A better way 

At RedZed our solution is built on relationships — and common sense. We know the self-employed are people looking for holistic solutions and we work hard to ensure that we can provide them.

Self-employed businesses employ over six million Australians, yet are all unique in their own way. The potential for partnerships lies in providing services tailored to this diversity. We partner with brokers that can can seize the opportunity in this market by providing unique service solutions that respect the big picture of self-employed circumstances. This in turn, serves to build trust and so strong foundations for an ongoing relationship that unleashes, not stifles, the business ambition of both parties.

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