From 1 July 2017, those with overdue tax debts will be disclosed to credit reporting agencies. This could impact borrowers not only by making it harder to obtaining finance in the future, but that existing finance and supplier arrangements could be withdrawn. One major bank that has business owners with overdrafts will quite often review the client’s credit facilities after a credit report. The tax debt now being shown could result in business owners being asked to take their business elsewhere.
A lot of banks see this as a negative impact on your ability to service a loan, and it will affect your credit score. This can result in the major banks not providing loans to people with these outstanding tax debts.
The major banks also do NOT allow for refinancing loans to cover tax debts. For that we must look outside of the major lenders.
Thankfully there are quite a few options still available to borrowers.
Please contact us directly if you happen to fall into this category.