Tax debt can prevent business owners from obtaining finance for the purchase of a residential property. This is because the outstanding tax debt reflects negatively on the business owner’s credit score and financial stability, which are key factors that lenders consider when assessing a loan application. As such, business owners with outstanding tax debts should seek to resolve their tax issues before applying for finance.
If you are an entrepreneur with outstanding tax debt, you may find it difficult to obtain finance for the purchase of a residential property. Lenders will be reluctant to provide you with a loan if they believe that you will not be able to repay it. Outstanding tax debt can also negatively affect your credit score, making it more difficult for you to obtain finance in the future.
Talk to the team at Ding Financial