Want to know how Pepper Money assesses Self-Employed income under the Alternative Documentation product?

Posted 30-03-2017
an image of a couple with self employed income

Have you ever had an application for a self-employed client fail servicing because you were restricted to using only 40% of their total sales in servicing?

At Pepper Money, we take a commercially appropriate view of the industry sector that an applicant is in. By taking a commercial approach Pepper Money can determine a profit margin appropriate to that sector.

For example if we are looking at a professional I.T business owner (working from home), the profit margin of sales would differ to that of a retail business owner (with shop front and staff).

However, all Alternative Document applications are assessed on their individual merits as to determine their profit margins.

Pepper Money seeks to validate an applicant’s declared taxable income by assessing a combination of 1 or 2 depending on product:

  • Business Activity Statements (2 quarters via ATO portal);
  • Deposits via their Business Bank Statements (most recent 6 months);
  • Peppers Accountants Letter

In reviewing this information, Pepper is looking for a consistent, stable sales history to support the taxable income declared by the applicant. Pepper also speak directly to the customer to understand their business and the income they have declared.

Next steps
If you have a client who may require an Alternative Documentation loan, submit your scenario to scenarios@pepper.com.au