Starting a new business can be equally exciting and deflating. The prospect of branching out on your own, doing your own thing, presenting your own products and services to customers, and being your own boss is a very attractive option for many people. In fact, new start-ups are increasing as more and more individuals look to alternative ways to derive an income, opt-out of full-time income, turn hobby businesses and interests into formal businesses, or just want a change.
But the downside can come when you start seeking finance to fund your venture. Most
start up businesses will require some type of equipment, machinery, and/or cars and work vehicles. You may need a delivery vehicle to pick up supplies and make customer deliveries. Tradies will need tools and equipment and a vehicle. Engineering and manufacturing concerns will need machinery. Retail outlets and general businesses will likely need finance to fit out the office or shop space. Those setting up cafes, restaurants, and bars will no doubt be seeking kitchen equipment loans.
Meeting the business loan applications of most banks can be a major obstacle for start-up businesses. Standard loan applications often require a business to have been trading for a minimum period – 12 to 24 months and most applications will request financial documents. If you’re just establishing a business and haven’t started traded or been trading for very long, clearly you won’t have that type of financial records.
At Business Finance we support new business start ups with cost effective financial solutions to purchase a range of business equipment and assets and for general cash flow purposes.
Low Docs Loan Options
For businesses with insufficient financial documentation to meet loan application requirements, we provide
Low Doc Business Loans or
No Doc Business Finance. As the name suggests, these types of loans do not require the same amount of documentation as fully documented loans. The key difference between Low and No Docs is the quality or quantity of information that can be provided. This may affect the conditions applied to the loan.
Purposes and Use of Low Docs Loans
Low Docs Loans are typically used for the purpose of buying equipment that can be used as security against the loan. This may include:-
- All types of cars will be used primarily in the course of the business operation. (Privately used cars are not eligible for business finance under ATO rulings)
- Work vehicles such as utes, SUVs, and light commercial vans.
- Trucks of all classes and categories – light, medium and heavy-duty. Trucks purchases can be for the prime mover or semi only or in a truck-trailer combined loan.
- Trailers of all types.
- Construction, earthmoving, and civil works equipment including yellow goods and wheeled goods.
- Plant and machinery used in many industries.
- General office and business equipment including IT, hardware, tech, and software.
- A wide range of equipment used in many industry sectors.
Low docs start-up cash flow loans can also be arranged through best
Unsecured Business Loans or Business Overdraft.
Types of Low Docs Start-up Loans
When approved for a low docs loan for an asset purchase, that loan can be used across our portfolio of business finance products, including:-
Start-up businesses should refer to their accountant, financial advisor, or tax agent re loan selection.
Low Docs Loan Features
Low Docs loans for start-up businesses can be achieved at the cheap interest rates we achieve across our loan portfolio but with additional conditions usually applying.
- Holding a current ABN is essential as is having full, verifiable identification.
- A good credit profile is usually required by lenders.
- Being registered for GST is not essential but can be viewed as desirable by some lenders.
- Security against the loan in addition to the asset/equipment being purchased may be requested. This will be based on individual lender requirements. It may include the business owner providing security or guarantee by way of other property or assets, either owned by the business or personally by the business owner.
- A maximum may be applied to the loan amount. Dependent on the assessment of the credit profile and proven ability to repay the loan.
- Financial documents will be requested and they may include: BAS statements if registered for GST; income tax returns if the business has been trading through a financial year; income and expenses records; accounts records even simply prepared by the business owner; assets and liabilities details including credit cards and other debts.
- Start-ups are very often asked to present a business plan to the lender. This can take many forms and can be either simply prepared by the business owner or professional prepared. Develop your business plan for preparing this type of document. The more detailed and verifiable the information provided in the plan, the better. This would include information on how the business intends to operate, customer/market, established sources of income/customers, sales and production forecasts, and other details.
Sourcing Start-up Loans
Banks are not as open to approving loans for new businesses as many non-bank lenders. A finance broker-style professional such as Business Finance is well-placed, highly qualified, and has the connections with the right lenders to secure cost-effective low docs finance.
With our vast lender network, we have the resources and the sources to achieve low docs start-up finance for many businesses at cheap
business loan interest rates. We do all the work in sourcing quotes, negotiating rates and loan conditions, processing the application, and structuring the finance to meet our customer requirements.
Cost-effective business loans for startups, first-timers, and new businesses is an achievable reality and Business Finance is ready to work towards making it your reality.
Contact 1300 000 033 to discuss your start-up commercial lending needs.
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 FINANCIAL DECISIONS. THOSE THAT CONSIDER THEY REQUIRE ADVICE OR GUIDANCE AROUND THEIR SPECIFIC FINANCIAL CIRCUMSTANCES ARE RECOMMENDED TO CONSULT WITH A FINANCIAL ADVISOR. NO LIABILITY IS ACCEPTED IN REGARD TO ANY MISREPRESENTATIONS OR ANY ERRORS RE ANY DATA, SPECIFICS, POLICIES AND OTHER INFORMATION AS SOURCED FROM OTHERS.
