The lending barrier
The business had grown from a home garage to a warehouse and was ready to buy commercial premises. Legitimate deductions reduced reported net profit, so the financial statements did not fully reflect the position relevant to the proposed borrowing.
How we approached it
We placed the purchase with a self-declared alternative-documentation commercial product that did not apply industry benchmarking. It offered a different income-assessment pathway from a standard bank application. The absence of an industry benchmark did not mean the application was exempt from the lender’s other credit requirements.
The outcome
The commercial purchase completed within the client’s budget and cash flow.
What this means for borrowers
A low reported net profit does not, by itself, tell the whole lending story. The relevant questions are what caused it, which evidence a lender will accept and whether the proposed debt suits the business. Alternative documentation is a product-specific assessment pathway, not a way to avoid accurate disclosure.
One client’s experience does not guarantee a similar result. Eligibility, documentation, pricing and terms depend on the lender and the individual application.