Bank Policy on Company Debts

Two different policies on self employed income. Hey, it's Aaron from Diagnostics and Finance following from my little rant on self employed. 1. One of the things that we can think about when we're self employed, if we run our company at a profit, a dollar or whatever it is that we're going to run as a profit, and we've got some liabilities in that company, whether it's car leases, business loans, short term, long term, any sort of business loan, commercial mortgages, things like that, if we are running our company at a profit and we draw a wage from that company, when we draw a wage that goes into our individual tax return and when we have a profit on our company, we have an ability with some lenders to be able to exclude the company debts and liabilities. If we run out of profit and use our wages a bit like someone who's employed down at the local cafe or wherever. If you're on a payslip, it shows that as a self employed person we can go down the line of using just wages and excluding the company. As soon as we take the company into account, whether it's some of the add backs, interest, depreciation and all that nice stuff, there are some rules that we may need to bring in those company debts. So if you've been heavily invested in your company, it could be a better way to look at how your wages are going to be if you want to borrow for a house or investment or whatever versus putting everything on the table. So check out the company policy, the bank's policies in regards to how you can service your income today.