EOFY Decisions That May Influence Business Borrowing In FY27
EOFY Decisions That May Influence Business Borrowing In FY27
As EOFY approaches, many business owners focus on tax planning. However, EOFY decisions can also influence future lending applications. This doesn’t mean businesses should make decisions for lending purposes alone. Rather, it highlights the importance of coordinated conversations between business owners and their Accountant when future borrowing may be part of upcoming plans.
ATO Payment Plans
ATO obligations may form part of lender assessment.
Business owners considering purchases, refinancing or commercial property opportunities in FY27 may wish to discuss ATO arrangements with their Accountant early.
Planning ahead can assist in understanding potential impacts.
Div 7A Considerations
Div 7A arrangements may also become relevant where company structures exist.
Loan structures, repayments and compliance obligations can influence financial statements and assessment outcomes.
Business owners should ensure these matters form part of annual planning discussions.
Profit Extraction And Lending
Lenders frequently review more than taxable income.
Distributions, retained earnings, addbacks and business performance can all contribute to assessment.
Tax planning and lending planning are not always identical exercises.
This is one reason strategic conversations across your Broker, Accountant and broader advisory team can become valuable.
Asset Purchases And Capital Expenditure
EOFY asset purchases remain common.
However timing, debt structures and cash flow implications may also influence future lending strategies.
Understanding the broader picture may assist businesses planning commercial property purchases or expansion.
Looking Ahead To FY27
For business owners considering property purchases, refinancing or investment opportunities, EOFY can become an important planning point.
The strongest outcomes often come from preparation rather than urgency.
The Business Owners’ Guide to Finance explores lending considerations relevant to business owners and self-employed applicants.
General information only and not tax advice. Speak with your Accountant regarding tax planning.
Helping business owners across Torquay, Geelong and the Surf Coast secure residential finance that makes sense for their lifestyle and business structure.