Your strengths lie in creativity, artistic expression, and crafting compelling experiences for audiences of all sizes. You may have strong attention to detail or even technical expertise, but finance likely isn’t your core focus. That’s where we come in. Let us be your trusted financial partner, so you can stay focused on your creative work and continue serving your clients, customers, and audience with confidence.
Do banks help people in creative industries?
Yes, banks want to help clients of all industries, as long as, fundamentally, they are good borrowers and have the ability to reliably repay a loan. This can be whether you run a marketing agency, a website development business, an event and entertainment company, or are even an entertainer, influencer or performer.
If you are earning good income, but it is just not a consistent wage, there are ways of getting a loan. You simply need the right paperwork and someone experienced to present your scenario to the bank or other non-bank lenders.
I am a freelancer under an ABN – how will the bank assess my income?
Perhaps you are a graphic designer, editor, copywriter or work in the music or film industry and billing through your own ABN as a sole trader.
Under this arrangement most banks will want to see 2 years Individual Tax Returns and Notice of Assessment. These banks usually take an average of your last 2 year’s income if your last year’s income is higher, or will take the latest year’s income if it is lower.
If your income has been growing year-on-year and you want to borrow more, some banks will be able to accept your latest year’s income for servicing. Please contact us to see if you are eligible for these banks.
I run a media, marketing or entertainment business – how will the bank look at my income?
If you are taking on bigger projects, employ people to deliver your work, or interact regularly with vendors and suppliers, then it is likely you have set up a Company or Trust to operate your business.
If so you will still need to provide your last 2 years Individual Tax Returns and Notice of Assessment if applying for a home loan. However, in addition, you will need to provide your last 2 years Company and / or Trust:
- Financial Statements
- Tax Returns
This is because the bank wants to see the source of where your income is being earned, and your full “flow of income” – how it is billed by your company or trust, and then distributed to you personally. Importantly, if your income and financial statements are being presented the right way, the profits in your business can be added to your personal salary to derive your total servicing income, in turn boosting your borrowing capacity.
My income has varied a lot over the last 2-3 years, what can I do about it?
We understand that company profits and personal incomes can fluctuate greatly in creative industries. While each client scenario and assessment is unique, we have several ways of addressing this to help you get your loan:
Telling your story: getting deeper into the business trends, and were the drivers of your spectacular growth, what caused the ‘off year’, and plans for the future.
Providing detailed information: making sure your information is up to date and what the lender wants, and providing additional information where it helps e.g. invoices for large one-off expenses
Providing an accountants letter: this can be an extra layer of support to add extra credibility to your application. They can highlight factors like business growth, profitability, and your ability to manage fluctuations in income.
Picking the right lender: different lenders treat your income differently. For example, some can apply your latest year’s financials for loan servicing, others require two years. Some can work with old paperwork, some require the absolute latest set of numbers.
If you are not quite fitting a bank’s requirement, we can also consider non-bank lenders.
What is an Alt Doc Loan?
An Alt Doc Loan (Alternative Documentation Loan) is designed for self-employed clients who may not have the paperwork required for a standard loan application. This may be due to timing (e.g. the financial year only just finished), performance or reporting issues (e.g. your last financial statements do not reflect your current earnings). Therefore, they often suit clients in the creative or entertainment industries going through fluctuating financial circumstances.
Alt Doc loans allow borrowers to use alternative forms of documentation to verify their income, including:
- Business Activity Statements (BAS): Last 6 months
- Business Bank Statements
- Accountant’s Verification Letters
To learn more, please see our articles on:
I would like to buy a car and / or equipment under my business entity – will the bank help me?
Yes, you can get a car loan to support your business. This is known as [designpluz, please link to the Equipment Finance page] and we are able to provide alternative loan options compared to what car dealers offer from bank and non-bank lenders.
For a bank loan under $250,000, you will need provide:
- Current Asset & Liability Statements from all borrowers/directors/guarantors
- Commitment schedule listing all loans & finance facilities
- Last 2 years of Financial Statements (Profit & Loss and Balance Sheet)
- Last 2 years of tax returns for individuals and beneficiaries
For larger loans or non-bank loans, please make an enquiry with us so we can evaluate your loan options.