Yes, and often on excellent terms. A day-rate lender assesses your contract value rather than your drawings, so a director on a strong day rate can borrow on their full earning power even while keeping drawings low for tax. The alternative accounts route suits high drawers; we compare both.
At a day-rate lender, no — it assesses the contract rate and ignores drawings. At an accounts-based lender, yes — your declared salary and dividends would be the basis. This is why tax-efficient directors should generally apply to day-rate lenders, keeping both the tax efficiency and the borrowing.
For the day-rate route, usually not — the current contract is the income evidence. Accounts-based lenders typically want around two years of figures. If you're a tax-efficient or newer contractor, the day-rate route usually avoids the accounts requirement altogether.
Sole traders are generally assessed on declared profit via SA302s and tax year overviews, usually over one to three years depending on the lender. Where a sole trader works to a clear day rate, some lenders may consider that too — we check which basis produces the stronger result.
Some lenders assess salary plus net profit rather than salary plus dividends, which can reflect earnings you've retained in the company rather than drawn. This can lift borrowing for a profitable company. Availability varies by lender and is confirmed at application.
Usually not. Drawing more to satisfy an accounts-based lender means paying more tax, often unnecessarily, because a day-rate lender assesses your full contract value regardless. Only genuine high-drawer or accounts-led cases benefit — a decision to take with your accountant and adviser together.
