If you want to borrow, your cash sales need to go through the business. Lenders work out how much you can borrow from the profit your financials show, usually across the last two to three years, so income kept off the books directly reduces your borrowing capacity. (All business income also has to be reported to the ATO.)

In this video, the McKern Finance team explains why so many business owners are asset-rich but can't show enough income to service a loan, why tax is rarely a business's biggest expense, and why you can't minimise your declared profit and still expect a bank to lend. Planning ahead with your accountant and broker gives you time to build the consistent track record banks want to see.

General information only, not personal advice.