What is an individual income letter?
When requesting financing a bank or other financial institution may often want a letter from an accountant confirming the income of an individual, particularly if that individual is a Director and/or shareholder of a business.
This is primarily because of the amount of control that the individual has over the salary declarations and cash accounts of the business.
At its simplest, it's just a letter confirming the monthly salary, however it can get quite complex with salary, dividends, drawings against a loan account, and other sources of income.
Creative CFO can help with this letter and will:
- Require the following documents to be provided
- Previous year's IRP5 certificates
- Previous year's individual tax return (ITR12)
- Previous year's financial statements
- Current management reports
- Current payroll information from all businesses related to the individual
- Details relating to other sources of income
- Write up a letter to show overall individual income based on the:
- verifiable forms of income
- cash movements on the loan account
Please select the number of related businesses you have* and check out with a quantity of 1. We'll get in touch with a confirmation of what information we'll need from you to get started.
Please note: We cannot guarantee that the specific financing application will be granted, or that the bank will accept the underlying financial data on the letter without additional review. We will prepare the letter to standards that have been accepted by banks on previous occasions.
*if you have more than 3, please contact us email@example.com for a quote.