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 caar loan with sole prop business

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TSsmaerz P
post Apr 2 2019, 10:32 AM, updated 5y ago

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Hello everyone,

our situation is quite difficult. We want to get a car loan - my wife is working as a contracted employee and also running a sole proprietorship. we registered SSM (more than 2 years ago) and opened current account. our company has only one client, from Germany, with partnership contract and fixed income of 11k a month.

The bank told us now that they only use 10 % of the income for their calculation, so instead of 11k the base is only 1k. so we are getting rejected. What can we do to bring in the full 11k? it is very frustrating, we could easily afford a mercedes but we can not get a loan for a perodua coz they are using only 10 % for their calculation.

hope to get any ideas from you guys
NightHeart
post Apr 2 2019, 12:16 PM

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QUOTE(smaerz @ Apr 2 2019, 10:32 AM)
Hello everyone,

our situation is quite difficult. We want to get a car loan - my wife is working as a contracted employee and also running a sole proprietorship. we registered SSM (more than 2 years ago) and opened current account. our company has only one client, from Germany, with partnership contract and fixed income of 11k a month.

The bank told us now that they only use 10 % of the income for their calculation, so instead of 11k the base is only 1k. so we are getting rejected. What can we do to bring in the full 11k? it is very frustrating, we could easily afford a mercedes but we can not get a loan for a perodua coz they are using only 10 % for their calculation.

hope to get any ideas from you guys
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Every bank only use 10% of your total revenue each month?
klthor
post Apr 3 2019, 12:37 PM

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im just wondering did you tell them that you have only 1 customer ? biggrin.gif if yes, try not telling them that.
TSsmaerz P
post Apr 3 2019, 05:40 PM

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QUOTE(klthor @ Apr 3 2019, 12:37 PM)
im just wondering did you tell them that you have only 1 customer ? biggrin.gif if yes, try not telling them that.
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does it make a difference? we have a contract with our customer, so it is fixed income. thought it might be better to have a fixed one rather than a flexible one.
lucifah
post Apr 3 2019, 05:46 PM

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QUOTE(smaerz @ Apr 2 2019, 10:32 AM)
it is very frustrating, we could easily afford a mercedes but we can not get a loan for a perodua coz they are using only 10 % for their calculation.


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then buy cash?

seriously, if you have fixed payment, then it should have some record somewhere.

sole prop businessusually rely on healthy bank statements and the tax return filings for the sole prop owner

if you can't even get hire purchase financing for a perodua, then i guess your cash flow & accounts are not in order


cmk96
post Apr 3 2019, 08:23 PM

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Why only 10%? Because its oversea contract work?
TOMEI-R
post Apr 3 2019, 09:25 PM

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Do you or your wife have any previous loans before, be it for housing or car loans with any banks? Because if you or your wife don't have any, it will be very hard to get a loan.
klthor
post Apr 3 2019, 10:53 PM

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QUOTE(smaerz @ Apr 3 2019, 05:40 PM)
does it make a difference? we have a contract with our customer, so it is fixed income. thought it might be better to have a fixed one rather than a flexible one.
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I guess having only 1 customer is higher risk than having 50 customers. Anyway, i have no idea too...
TSsmaerz P
post Apr 4 2019, 09:02 AM

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thx for the replies so far....

our bank statements are healthy, we delivered every document they needed, also all of the invoices that they can track the money. tax refund fillings arent required for that kind so far and also foreign-sourced income is not subject to income tax in malaysia.

public bank said it is their guideline that they calculate with 10 % for companies. i asked why, no answer, just always said their guideline. thats malaysia how i got to know it so far, if you ask further no one wants to and can give you an answer.

1 customer is higher risk? even with endless contract? i dont know... if you are an employee, you also only work for one company and not for 50

and now to that previous loan point. that is the most absurd criteria i have ever heard and if you tell bankers from other countries like germany about it they start to laugh about it. taking a loan lowers your credit score and a good credit score is important to get a loan. also means your cash flow is not healthy. it doesnt make sense at all. i know they wanna see if you are reasonable and paying your installments, but it doesnt say if i will do it in that case too. like i said it is really absurd.

but my wife is paying back her PTPTN and that counts they said, so it cant be the reason too.
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post Apr 4 2019, 09:08 AM

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QUOTE(smaerz @ Apr 4 2019, 09:02 AM)
thx for the replies so far....

our bank statements are healthy, we delivered every document they needed, also all of the invoices that they can track the money. tax refund fillings arent required for that kind so far and also foreign-sourced income is not subject to income tax in malaysia.

public bank said it is their guideline that they calculate with 10 % for companies. i asked why, no answer, just always said their guideline. thats malaysia how i got to know it so far, if you ask further no one wants to and can give you an answer.

1 customer is higher risk? even with endless contract? i dont know... if you are an employee, you also only work for one company and not for 50

and now to that previous loan point. that is the most absurd criteria i have ever heard and if you tell bankers from other countries like germany about it they start to laugh about it. taking a loan lowers your credit score and a good credit score is important to get a loan. also means your cash flow is not healthy. it doesnt make sense at all. i know they wanna see if you are reasonable and paying your installments, but it doesnt say if i will do it in that case too. like i said it is really absurd.

but my wife is paying back her PTPTN and that counts they said, so it cant be the reason too.
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So why not pay cash? why want to pay interest when u can afford?


Btw only 1 client? that seems dodgy...anyway thats what i think only.
iq_myst
post Apr 4 2019, 09:15 AM

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i think it is quite reasonable for bank to only consider 10% of monthly revenue. Normal business model with have multiple debit and credit. therefore if they consider 100% of monthly revenue, then most sole proprietorship company will be able to buy a benz then when in reality they can't afford to. why not consider changing the contract terms directly to you as their contract employee instead of to a company?
lucifah
post Apr 4 2019, 10:53 AM

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QUOTE(smaerz @ Apr 4 2019, 09:02 AM)
thx for the replies so far....

our bank statements are healthy, we delivered every document they needed, also all of the invoices that they can track the money. tax refund fillings arent required for that kind so far and also foreign-sourced income is not subject to income tax in malaysia.

public bank said it is their guideline that they calculate with 10 % for companies. i asked why, no answer, just always said their guideline. thats malaysia how i got to know it so far, if you ask further no one wants to and can give you an answer.

1 customer is higher risk? even with endless contract? i dont know... if you are an employee, you also only work for one company and not for 50

and now to that previous loan point. that is the most absurd criteria i have ever heard and if you tell bankers from other countries like germany about it they start to laugh about it. taking a loan lowers your credit score and a good credit score is important to get a loan. also means your cash flow is not healthy. it doesnt make sense at all. i know they wanna see if you are reasonable and paying your installments, but it doesnt say if i will do it in that case too. like i said it is really absurd.

but my wife is paying back her PTPTN and that counts they said, so it cant be the reason too.
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so... u mentioned PBB? how about other banks?

hire purchase loan is the easiest to be approved of all type of loans

what kind of car are you buying? a high end sports car?

AFAIK, with healthy bank account, u can easily get pre-approved loan for average car in half day saja
cmk96
post Apr 4 2019, 12:47 PM

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i believe your bank statement is too short period?

and you never paid tax so far?

go apply few more banks.... show FD cert if you have.


TSsmaerz P
post Apr 4 2019, 02:28 PM

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well guys, yes we only have one client, but thats a full time job to do the work for that client. no one says a sole proprietorship must have more than one client.

that company is based in germany, so we can not just join them as an employee. easiest way is the way we have. and bank statements are 6 months as required.

we want to buy a perodua aruz, not a benz... but we could afford a benz, no problem. i understand that some companies are more difficult to track the cash flow and thats why they calculate with 10 %, but you also have to judge every case differently. we only get the money from one source, it is like a salary... not logical to me.

why we dont buy cash? maybe we dont have 80k in cash right now
DS_Legacy
post Apr 4 2019, 04:05 PM

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QUOTE(smaerz @ Apr 4 2019, 02:28 PM)
well guys, yes we only have one client, but thats a full time job to do the work for that client. no one says a sole proprietorship must have more than one client.

that company is based in germany, so we can not just join them as an employee. easiest way is the way we have. and bank statements are 6 months as required.

we want to buy a perodua aruz, not a benz... but we could afford a benz, no problem. i understand that some companies are more difficult to track the cash flow and thats why they calculate with 10 %, but you also have to judge every case differently. we only get the money from one source, it is like a salary... not logical to me.

why we dont buy cash? maybe we dont have 80k in cash right now
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If you can afford a benz, you can pay cash straight away. I know you are frustrated but that's not how you can assume things.

Look for solutions instead. Try other banks instead? Public bank and maybank are usually less lenient. Ambank and cimb are more lenient, and you can try your luck there.




wucommerce
post Jun 14 2019, 12:38 PM

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QUOTE(klthor @ Apr 3 2019, 10:53 PM)
I guess having only 1 customer is higher risk than having 50 customers. Anyway, i have no idea too...
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My apologies for reviving this thread. Just wanted to say I've sent you a PM. Please check it out

 

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