If you are self employed and want to buy a house here some few things I did to secure a bond from the bank. You should start doing the below six months before you approach banks.
1. Make sure you pay yourself a salary every month or directors renumeration. This can be any amount not fixed.
2. Start liaising with a
Registered Auditor or Chartered Accountant,
CA RA Mpako Inc. has competent staff to assist in looking into your books and prepare you for a financial statement or management accounts.
3. Do a self introspection and evaluate your income versus your expenses, make sure your business shows profitability. You can combine two or more businesses as you approach the bank.
4. Start collecting letters from customers detailing your service offering and duration or gather your appointment contracts letters, the bank will need to see proof of business continuity.
5. Make sure you are a director and listed on the
company registration document
6. If the business have more than one partner then a letter of good standing from them should be prepared.
7. Directors earning must be clearly outlined in your financial statements.
8. Lastly gather any other proof of income, ( salary slips, spouses income, etc)
If all the above is in order, then approach the banks. It is very possible to secure a bond as a self employed.
This is not a one size fit all approach, consult with your bankers ahead of time and get expert advise.
