No Docs Business Loans – Compare Interest Rates
These commercial loans can be approved for a wide selection of lending products. Applicants can be offered the same interest rate as fully documented applicants but with stricter criteria and conditions. This comparison chart allows you to quickly see the different interest rates we are achieving on different loan products and calculate repayment estimates for each lending facility to use in your planning process.
Find Low Doc Business Loans
In the financial services industry, the term ‘low docs’ refers to loan applications which do not have the complete documentation that banks and lenders usually require to be accepted. This documentation is essential financial records.
Low Docs may be sought by many operators including sole traders, owner-operators, small business loans Australia wide and others. The low docs situation may arise as the business is starting up or has not been trading for an extended period. That is, a long enough trading period to meet bank loan guidelines.
This is considered a higher risk loan category and attracts a higher interest rate than loans which have the complete documentation. But this type of loan is offered, dependent on individual lender requirements and individual applications.
To improve the chances of being offered a loan, applicants can take actions to enhance their loan applications.
We have connections with lenders that do offer commercial low docs and we can share these contacts with you. Using the services of a professional broker to source your low docs commercial loan may have a significant positive impact on the outcome. Ensure you broker has experience in dealing with this type of loan category, has the right lenders in their lending panel to approach and has a positive and cooperative attitude to assisting you.
Low Doc Loan Requirements and Conditions
While individual lenders will have their own set of conditions and requirements, we can provide you with a general indication of what you may expect regarding your loan.
- ABN is essential. You must hold a current ABN. Recently acquired ABN holders are not viewed as favorably as longer term ABN holders.
- As with all financial matters, you will need to provide proof of identification. This will include proof of your personal ID and of aspects of your business ID.
- GST status must be advised. ABN holders that are registered for GST are usually viewed more favorably than those that are not registered for GST.
While understanding that you do not have all the docs required for a standard loan application, some forms of information and records will be required.
These may include:-
- BAS Statements
- Bank account statements
- Accounts – simple accounting records that you have prepared yourself and are verifiable from bank statements or accounts as prepared by your accountant or tax agent.
- Tax Portal information
As a higher risk loan category, lenders will usually apply certain additional conditions on the loan which may include:-
- A larger deposit be paid on the goods being purchased.
- Security in addition to the goods being purchased. This may take the form of property, commercial owner’s personal guarantee or other security.
- Not offered for older goods such as trucks and motor vehicle over a certain age or equipment with a short working life remaining.
Low Doc Business Loan Types
Low Doc Loans can be achieved for the full range of commercial products, subject to individual lender requirements.
- CHP Loan
- Equipment loan
- Rent to Own Lending
- Chattel Mortgage
Once accepted, businesses can utilise low docs loans to acquire a range of assets including both new and second-hand motor vehicles, truck finance and equipment.
Securing a Low Docs Business Loan
We have connections with lenders and brokers that may be able to assist you. It is a specialist area and we know the specialists!
Connect with us for possible solutions for a low doc loan.