Business Finance Australia provides access to Low Doc and No Doc Finance for motor vehicles, trucks, equipment and business expenses to set up a new business. This is a very popular time of year – the start, for people to rethink the way they earn an income and put plans into action to make a change.
That may be a change to self-employment in any number of fields. The opportunities for sole trader, self-employment and contract work are available across many industry sectors. These include as an owner-operator for an excavator, crane or other construction equipment, as an IT specialist or web designer, in the trades, as a delivery service with a van or truck and in the transport sector as an owner-driver.
But these opportunities are often not able to be realised due to difficulties with sourcing affordable, workable finance to acquire the necessary equipment. It only takes a quick browse of the business loan application eligibility on some lender websites to see the problem. It is not unusual to see a minimum trading period of 12-24 months and extensive financial and other trading documentation is usually required.
Clearly, someone starting a new business will not be in a position to meet those criteria. The solution is
Low Doc or No Doc Finance. A finance solution which is not available through all banks and lenders, but is available through our specialist broker-style lender services.
Low Doc and No Doc Finance may suit a wide range of new business set-ups across the full spectrum of industries. This solution may be used to purchase cars, motor vehicles, all types of vans and trucks and a large selection of machinery and equipment. We individually source and negotiate each finance offer to ensure it meets the requirements of the business.
Low Doc No Doc Criteria and Conditions
Low doc and no doc finance is essentially finance which is secured without the full quantity of documentation that is typically required for business finance. These ‘docs’ can be financial statements, BAS activity statements, bank statements, tax returns and other trading records. The amount of this type of information the business can provide determines whether low doc or no docs is required.
While not all the documentation is required, there are non-negotiable eligibility criteria. The essential is that the finance applicant must have an ABN. If you haven’t already applied for that, it can be done through the
government website. If the business is set-up as a company, the directors must have a
Director Identification Number. This is also quite easy to attain.
Applicants must also be able to provide identification.
With the loans, certain special conditions may be attached to the loan which would not apply to finance to well-established operations with full documentation. These conditions will vary depending on the actual loan, the amount, the individual and the lender’s requirements.
Conditions may include such aspects as additional security being provided as a guarantee for the finance; limits on the maximum finance amount; and other specifics. These will be discussed with the applicant by our consultant.
Asset Acquisition Finance
When the new business is approved by one of our lenders for low doc or no doc finance, the business owner may select from the asset acquisition finance options that will work for their set-up.
The selection includes:-
- Chattel Mortgage or Equipment Loan
- Leasing
- Commercial Hire Purchase
- Rent to Buy
A discussion with an accountant or financial advisor that is familiar with the business set-up and taxation requirements is strongly advised to select the most appropriate finance product.
The interest rates offered for Low Doc and No Doc finance can still be extremely attractive and applicants do not automatically attract higher rates. The credit profile of the individual will likely be assessed as part of the application approval process. Having a good credit score will be a positive in that process.
Once finance is secured, businesses will also have the same tax benefits and obligations as business with full documentation finance. Currently, that may include taking
advantage of tax benefits such as temporary full expensing subject to meeting the criteria.
Commercial Finance Solutions
While purchasing equipment or vehicles is the priority for many new business set-ups, others have the need for more general finance solutions.
These may include:-
Our consultants will work through the needs of the business and source the appropriate form of finance at the cheapest interest rates achievable.
How We Can Assist
As specialists in business finance, our lending services extend across all industries and for all different types of business set-ups. Our individual and customised approach with finance sourced from a large lender base, ensure a tailored solution to specific requirements.
We aim to support our new customers through the initial stages of setting up their business and continue to work with operators on finance solutions as the business grows into the future.
To get your new enterprise off the ground with low doc or no doc finance, contact Business Finance Australia on 1300 000 033
DISCLAIMER: THE SPECIFIC PURPOSE IN PROVIDING THIS ARTICLE IS FOR GENERAL INFORMATION ONLY. IT IS NOT INTENDED AS THE SOLE SOURCE OF FINANCIAL INFORMATION ON WHICH TO MAKE BUSINESS FINANCE DECISIONS. BUSINESS OWNERS WHO REQUIRE ADVICE OR GUIDANCE AROUND THEIR SPECIFIC FINANCIAL CIRCUMSTANCES ARE RECOMMENDED TO CONSULT WITH AN ADVISOR OR ACCOUNTANT. NO LIABILITY IS ACCEPTED IN REGARD TO ANY MISREPRESENTATIONS OR ANY ERRORS RE ANY DATA, SPECIFICS, POLICIES AND OTHER INFORMATION AS SOURCED FROM OTHERS.
